Grenada - Future trends

Grenada's economy seems likely to move further away from agriculture and toward tourism and manufacturing, especially when the temporary boom in nutmeg exports comes to an end. It is likely that the government will encourage growth in these newer sectors by offering new incentives to foreign companies. The success or failure of the first telemarketing ventures will determine the future of high-tech investment in Grenada and similar Caribbean economies. Grenada will be less affected than other Eastern Caribbean islands by the decline in the banana industry or an eventual collapse, and in this sense its economic future is relatively hopeful.

The main problems for the government will involve narrowing the wide trade deficit and reducing the national debt . There is much work to be done in redistributing wealth away from a small minority toward the many Grenadians who continue to live in poverty. The NNP has the political support to make progress in these areas and has the capability to introduce effective poverty-alleviation programs. Nevertheless, much depends on the health of the U.S. and European economies, which are critical to the continuing growth of Grenada's tourism industry. If there is a slowdown in this sector, government revenue will decline and so will its ability to achieve its social objectives.

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