Our comprehensive assessment of Grenada's operating environment and the outlook for its leading sectors are formed by bringing together a wealth of data on global markets that affect Grenada , as well as the latest industry developments that could impact Grenada's industries. This unique integrated approach has given us an impeccable track-record for predicting important shifts in the markets, ensuring you’re aware of the latest market opportunities and risks in Grenada before your competitors.
Grenada Country Risk
Economic growth in Grenada will remain subdued over the next 10 years, and the country will continue to run current account and fiscal deficits. The rise in government debt to around 110% of GDP has resulted in a comprehensive debt restructuring deal with the IMF, the effects of which will weigh on the island's growth prospects over at least the first half of our 10-year forecast period. Consequently, we forecast real GDP growth to average just 1.6% over the next decade.
We believe that Grenada will replace the English Privy Council with the Caribbean Court of Justice (CCJ) as the island nation's final court of appeal. While this will not significantly alter daily operations in Grenada, it is a signal of increased regional integration, a trend that we believe will continue.
Tourism in Grenada will continue to recover over the...
Grenada Industry Coverage (1)
BMI View: The ongoing economic uptick in the US will translate into rising departures to the Caribbean in 2015, with St Lucia, St Eustatius, the Cayman Islands and Cuba set to perform particularly well. We see particular opportunities in Cuba, with the US-Cuba diplomatic rapprochement boosting prospects for a relaxation of the bilateral tourist regime.
The Caribbean is a popular tourist market, attracting high numbers of visitors from North America and Europe. Its many beaches and islands have encouraged the development of a high-end, resort-led accommodation sector, with very few budget alternatives on offer. For this reason, the Caribbean is a relatively expensive destination and can be vulnerable to economic fluctuations in its major source markets. In addition, transport infrastructure is lagging behind hotel infrastructure, although we note that there are several major airport expansion projects under way....