St. Vincent and the Grenadines - Economy

Agriculture is the mainstay of the economy of St. Vincent and the Grenadines, with bananas as the primary cash crop. Vegetable production for export grew significantly in the mid 1980s, as the market for arrowroot declined. Revenues from banana exports have fallen since 1990, but EU support after 1998 helped the industry. Tourism is particularly important in the Grenadines, where yachting is a principal pastime. Some of the smaller cays have been wholly acquired by private interests and developed into resorts for European and North American visitors. Some industrial development has begun in St. Vincent, but the government has been relatively unsuccessful at introducing new industries, and high unemployment rates of 35–40% continue. The continuing dependence on a single crop represents the biggest obstacle to economic development; tropical storms frequently disturb agricultural production.