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Grenada
Area: 340 sq km; (133 sq mi)
Population: 89,703 (July 2006 est.)
Capital City: St George's (population: 33,734)
People: Grenada's population is mainly of African descent; A few East Indians and a small community of the descendants of early European settlers reside in Grenada. About 50% of Grenada's population is under the age of 30. The official language is English with a few people speaking French patois. A more significant reminder of Grenada's historical link with France is the strength of the Roman Catholic Church to which about 60% of Grenadians belong. The Anglican Church is the largest Protestant denomination.
Religion(s): Roman Catholic 53%, Anglican 13.8%, other Protestant 33.2%
Currency: Eastern Caribbean Dollar (XCD) GBP1.00 = 5.33 XCD, 1 EUR = 3.60 XCD
Major Political Parties: Grenada United Labour Party (GULP); National Democratic Congress (NDC); New National Party (NNP); People's Labour Movement (PLM)
Government: Grenada is governed under a parliamentary system based on the British model. It has a Governor-General, a Prime Minister and a cabinet, a bicameral Parliament with an elected House of Representatives and a politically appointed Senate. Citizens enjoy a wide range of civil and political rights guaranteed by the constitution. Citizens exercise the right to a change of government through the holding of periodic, free, and fair elections held on the basis of universal suffrage. Security in Grenada is maintained by the 650 members of the Royal Grenada Police Force (RGPF), which includes an 80-member paramilitary special services unit (SSU) and a 30-member coast guard.
Head of State: Queen Elizabeth II, represented by the Governor-General Sir Daniel Williams.
Minister/Premier: The Rt Hon Dr Keith Mitchell MP
Foreign Minister: The Hon Elvin Nimrod MP
Membership of international groups/organisations: United Nations (UN), Organisation of American States (OAS), the Commonwealth, African, Caribbean Pacific Group of States (ACP), Organisation of Eastern Caribbean States (OECS), CARICOM, the Eastern Caribbean Central Bank (ECCB), Caribbean Development Bank (CDB),(G-77), UNESCO, the International Fund for Agricultural Development (IFAD), the International Whaling Commission, World Bank and IMF.
GEOGRAPHYGrenada, and it's sister islands of Carriacou and Petit Martinique, are the most southerly islands of the Eastern Caribbean and are located approximately 90 miles north of Trinidad. Grenada is volcanic in origin with tropical rainforests and mangrove swamps contributing to its rich and diverse natural vegetation. It enjoys a tropical climate with a rainy season from June to December and a drier, less humid climate, from January to May.
HISTORYGrenada was discovered by Christopher Columbus in 1498 and named Concepcion. Later colonised by the French and, in 1763, ceded to Great Britain in the Treaty of Versailles. Grenada became a self- governing Associated State in 1967 and gained Independence on 7 February 1974. In 1979 the then elected Government was overthrown by the New Jewel Movement led by Maurice Bishop who formed a People's Revolutionary Government (PRG). Disagreements within the PRG resulted in the arrest and subsequent assassination of Bishop in October 1983. The PRG was replaced briefly by a Revolutionary Military Council. These events led to an intervention by US and Caribbean forces in late 1983 and a return to democracy. The current Prime Minister, the Rt Hon Dr Keith Mitchell MP, was elected to a third successive term of office in November 2003.
POLITICSPrime Minister, Dr Keith Mitchell, was first elected to office in June 1995. In November 1998, his New National Party (NNP) was forced into an early election when it lost its parliamentary majority. At the next General Election in January 1999 the NNP took all 15 parliamentary seats (and 62% of the vote). The NNP were again returned to power following the Election in November 2003 but with a majority of only one seat. The NNP gained eight seats while the National Democratic Congress (NDC) gained seven seats. Following this election victory the NNP became the first party in Grenada to have won three successive terms in Government since 1984, when parliamentary government was restored.
HURRICANE IVANHurricane Ivan, the worst for 49 years hit Grenada on 7 September 2004, causing massive damage and destruction. In addition to the dead and injured, 50% of the population were estimated to have lost their homes with 90% of housing stock damaged. The effects of the hurricane on the economy of the country are expected to be long lasting. July 2005 saw Grenada hit by a second hurricane, Emily. Although not as damaging as Ivan, there was some damage in the north of Grenada and extensive damage in Carriacou and Petite Martinique.
Following Hurricane Ivan the Foreign Secretary appointed Baroness Howells of St Davids as his Personal Envoy. She travelled to Grenada on 23 September 2004 and reported back to Jack Straw and Hilary Benn (Secretary of State for International Development) on the situation in Grenada. UK emergency assistance to Grenada (including through European Community funds made available) was in the region of £7 million.
ECONOMYThe economic growth for 2006 was estimated to be 1.3%. This was primarily driven by the construction industry, supported by revitalised cruise tourism. The main agriculture sector in 2006 grew by an estimated 20.55 following the decline of 38.1% in 2005.
2006 saw relatively high rates of inflation fuelled mainly by the high price of oil during the early part of the year.
The main sources of employment in Grenada are agriculture, construction and tourism. The main export and principal crop is nutmeg but banana, cocoa and fish exports also contribute to the economy. The importance of agriculture has been reduced over the last decade with natural disasters, declining international prices and disease affecting this sector. But the Ministry of Agriculture have developed a National Strategy to address the decline in people working in the agriculture sector.
Unemployment, particularly among the youth population remains high.
Medium-Term OutlookReal GDP growth of 55% projected for 2007 and 4% for 2008. Average inflation for 2007 is expected to remain stable at 2% over the next two years.
The fiscal reforms agreed before Hurricane Ivan in 2004 will now be implemented, this includes the introduction of VAT by October 2007 to replace the General Consumption tax, the Airline Ticket tax and Motor Vehicle purchase tax. VAT is expected to raise EC\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\$44.5m in 2007.
The 2007 budget allows for an account surplus of 5.9% of GDP (around EC\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\$90.5.
Expected Revenue of around EC\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\$441.1 in 2007.
A current account surplus of EC\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\$73m or 5.25 of GDP is projected for 2006.
Tourism is Grenada's main foreign exchange earner. Declining passenger confidence following the events of 11 September led to a fall in visitor numbers in 2001 (123,351 total visitors of which 28,488 were from the UK). There was however, optimism of a sustained recovery following the announcement of a new service to Grenada by Virgin Atlantic from May 2003 and the introduction of a second weekly British Airways flight from October 2002. The number of hotel rooms remains the critical impediment to further growth. Two leading hotels, the Grand Beach Resort and the Spice Island Resort, have both completed refurbishment and expansion projects but there is no sign of any major new investment. Hurricane Ivan in September 2004 badly damaged the tourist infrastructure. Although cruise ships have returned to Grenada and many hotels have reopened it will take some time for the industry to fully recover.
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