|Capital of country:||St. George|
|Population:||110,694 (Jul. 2015)|
|Official Language:||English. Many persons are fluent in French and Spanish|
|GDP growth (%):||1.5% (2014)|
|GDP per capita:||12.000 (2014)|
|Major Exports:||Nutmeg, Cocoa, Mace, Fresh Fruits and Vegetables, Fish, Flour, Wheat Bran, Clothing, Paints and Varnish, Paper Products, Malt, Animal Feed, Beverages.|
|Major Imports:||Food and Live Animals, Beverages and Tobacco, Crude Material, Fuel and Lubricants, Animal and Vegetable, Oils, Chemicals, Machinery, Transport, Equipment and Manufactured Material.|
|Key Productive sectors:||TOURISM & HOSPITALITY SERVICES, MEDICAL SERVICES, EDUCATION SERVICES, INFORMATION COMMUNICATION TECHNOLOGY (ICT), AGRI-BUSINESS, ENERGY DEVELOPMENT, MANUFACTURING, FINANCIAL SERVICES|
|Government (type):||West Minister Style Parliamentary form of Government|
|Governor-General:||Cecile LA GRENADE|
|Prime Minister||Dr Keith Mitchell|
|Opposition leader||Hon Tillman Thomas|
Grenada has a largely tourism-based, small, open economy. Over the past two decades, the economy has shifted from one of agriculture-dominant into that of services-dominant, with tourism serving as the leading foreign currency earning sector. The country’s principal export crops are the spices nutmeg and mace (Grenada is the world’s second largest producer of nutmeg after Indonesia). Manufacturing industries in Grenada operate mostly on a small scale, including production of beverages and other foodstuff, textiles, and the assembly of electronic components for export.
Grenadian culture is a mixture of British, African, West Indian and French influences which has left an indomitable influence in the folklore, dialect, music and general way of life. French influence on Grenadian culture can still be found in surnames, names of villages and the local dialect or Patois. Historical sites also portray remnants of French and British colonial architecture that have been well preserved.
Adult literacy rate in Grenada is 95%. The education system is modelled largely on the British system. Education is free and compulsory from ages 5 to 16. There are: 118 pre-primary schools (including private and public), 82 primary schools, 22 secondary schools, three (3) schools for children with special education needs and three (3) institutions that specialize in technical and Vocational training.
Labour cost in Grenada is relatively low in comparison to countries with similar economic status. Labour productivity is relatively high. With a relatively young English speaking workforce and high levels of adult literacy (96%) the workforce is highly trainable. Approximately half of the workers of Grenada have a high school diploma and another 13% have benefited from tertiary education. A narrow tax wedge increases the incentives to work. While the workforce is highly unionized (80%), labour relations are relatively good.
(Only a few companies have websites)
|Grenada Broadcasting Network|
|Klassic AM 540||www.klassicgrenada.com|
|WEE FM email@example.com|
|Voice of Grenada||www.spiceislander.com/vog|
Targeted Sectors for Investment
Medical Tourism and Medical Wellness Tourism, Health Education and Wellness Services, Agribusiness, ICT, Energy Developmen
Targeted sectors for Export
Yachting, diving and cruise tourism
Bilateral Investment Agreements /International Investment Agreements signed
Investment Protection and Promotion Agreement with the United Kingdom Reciprocal Encouragement and Protection of Investment with the USA
Other regional agreements signed (list)
- Caribbean Basin Initiative (CBI) (1993)
Products made in Grenada and exported to the U.S.A. can enjoy duty free entry under the provisions of the Caribbean Basin Initiative (CBI). At least 35% of the appraised value of manufactured articles must be derived in Grenada. This can be reduced to 20% as
U.S. made components may account for up 15% of the value added.
- CARIBCAN (1986)
Products made in Grenada can be exported to Canada free of customs duties under the CARIBCAN agreement. The products must either be wholly produced or manufactured in Grenada with a minimum of 60% of the ex-factory price of the product originating in the Commonwealth Caribbean or Canada.
- CARICOM (1973)
Grenada-based manufacturers have preferential access to the regional market of over 5 million people in the Caribbean Common Market (CARICOM). Locally produced or manufactured goods may be imported duty free into any of the fifteen (15) CARICOM member states, subject to certain value added criteria as specified under the CARICOM Rules of Origin.
- Venezuela – CARICOM Agreement (1992)
Grenadian-made products can be exported to Venezuela under this recent agreement, without attracting any customs duties. Goods should be wholly produced or at least 50% of the export value of the products should be local value added, or should have undergone a process of substantial transformation, i.e. the final product should be classified under a different tariff heading from that of the material used to manufacture the said product.
- Colombia – CARICOM Agreement (1994)
Grenadian-made products can be exported to Colombia under a recent Colombian- CARICOM agreement without attracting any customs duties. Goods should be wholly produced or at least 60% of the export value of the product should be local value added, or should have undergone a process of substantial transformation, i.e. the final product is classified under a different tariff heading from that of the material used to manufacture the said product.
- Dominican Republic – CARICOM Agreement (2001)
This agreement allows the creation of a Free Trade Area, which includes trade in goods and services, investment and economic co-operation, with the objective of strengthening the commercial and economic relations between the two (2) parties.
- Canada – CARICOM Agreement
This agreement currently in negotiation stage, seeks to enhanced trade arrangement with Canada to: (i) preserve, build on and broaden the scope of the current instruments of trade and economic co-operation; (ii) deepen disciplines to improve market access for CARICOM exports of goods and services; (iii) broaden the country coverage to include all CARICOM states (iv) stimulate increased flows of Canadian investment into the region and (v) to provide a comprehensive framework for the development of co-operation initiatives.
- Cuba – CARICOM Trade and Economic Co-operation Agreement (2000)
This agreement was inspired by the purposes of the Association of Caribbean States to promote an expanded economic space for regional trade and investment and to gradually and progressively foster economic integration including the liberalization of trade, investment, transportation and other related areas. The agreement allows for the promotion and expansion of trade in goods and services originating in the territories of the Parties by means of inter alia, free access to the markets of the Parties, elimination of nontariff barriers to trade, the establishment of a system of rules of origin, and harmonization of technical, sanitary and phyto-sanitary measures.
- Costa Rica – CARICOM Agreement (2004)
Under this agreement, Costa Rica will grant free access to goods originating from LDC members of CARICOM which includes Grenada. It provides for the free trade or preferential access for a wide range of products without requiring reciprocal arrangements.
- Economic Partnership Agreement (EPA) (2008)
The CARIFORUM-EC removes all tariffs and quotas on Caribbean exports to the EU. The only exception is sugar and rice, which will be liberalized over short periods.
- Bilateral Agreements
Grenada has bilateral Investment Agreements with the United Kingdom and the United States of America. Tax Information Exchange Agreements (TIEA’s) with the USA, France, Germany, Australia, United Kingdom, Northern Ireland, The Kingdom of the Netherlands, The Netherlands Antilles and Aruba. Grenada has also completed negotiations with Sweden, Norway, Finland, Denmark, Iceland, TheFaroes and Greenland.
- Investment protection and promotion agreement with the UK
The agreement encourages British Investors confidence by setting high standards of investor protection applicable in international law. Key elements include provisions for equal and non-discriminatory treatment of investors and their investments, compensation for expropriation, transfer of capital and returns and access to independent settlement of disputes.
- Reciprocal Encouragement And Protection of Investment With The USA
The agreement protects U.S. investor’s against performance requirements, restrictions on transfers, arbitrary expropriation and sets forth procedures for settlement of disputes. By providing a more open and secure environment for investment, it also promotes private sector development.
- CARICOM Single Market and Economy (CSME)
The CARICOM Single Market and Economy is an arrangement which allows CARICOM goods, services, people and capital to move throughout the community without restrictions to achieve a single large economic space and provide for one economic and trade policy. This arrangement was implemented by the More Developed Countries and Belize on 1st of January 2006 and by O.E.C.S countries on the 1st of July 2006. The CSME was envisioned to embody the notion of a Single Caribbean Economy based upon the pursuit of unified and harmonized economic fiscal and monetary policies.
Incentives are across the board for the sectors and include:
ØØ Relief from customs duties and taxes on plant, equipment, raw materials
ØØ Tax credits for training, research and development
ØØ Income tax relief
Cost of Doing Business
|Corporate Income tax rate||The Income Tax Act No. 36 of 1994 regulates the payment of corporate taxes by companies earning an annual net profit in excess of US $22,222.00 per annum. The applied rate of this tax isthirty percent (30%).|
|Personal income tax rate||The Income Tax Act No. 36 of 1994 regulates the payment of Personal taxes by sole proprietors, professionals and employees earning in excess of US $22,222.00 per annum. The applied rate of this tax is thirty percent (30%) of net profits in excess of US $22,222.00 and is due and payable within 90 days at the end of each _financial year. However, in the case of an employee it is deducted monthly by the employer. All returns are due within ninety days after the end of the accounting period (_fiscal year basis) and an interest of 1.5% per month or part thereof is charged on the unpaid balance.|
|Average hours per week||40 hours|
|Average cost of Transportation Fuel||2.22USD$ per gallon|
|Average cost per sq.ft, for office space in the central business district||
|Average cost per sq.ft, for industrial space in the central business district||$.68 (USD)|
|Average cost per sq.ft for land (zoned for commercial use) in/nearby central business district||$37.00 (USD)|
Average cost of electricity (per kWh for businesses) in USD
|Charge||Domestic Customer||Commercial Customer||Industrial Customer|
|Applies to||Electricity supplied to a residential property for non-commercial activities||Electricity supplied for non- residential or business activities||
Electricity supplied for industry or where electric motors have an aggregate maximum power output rating of 5 or more horse power and are not normally used between 6.00 p.m. and 10.00
15% of non-fuel charge
after the first 99 units
|15% of non-fuel charge||15% of non-fuel charge|
Less than 99 units – $0
99 – 149 units – $1.85
150 units & above – $3.7
|Fuel Charge||$0.13 pero kWh or unit||$0.13 pero kWh or unit||$0.13 pero kWh or unit|
$0.15 (cents per unit)
Minimum – $1.48
|$0.17 cents (per unit)||$0.12 cents (per unit)|
|Floor Area Charge (per 50 sq. feet of floor area)||N/A||.07 cents (per month)||N/A|
$0.7361 (per horsepower)
Minimum – $3.68
Source: Grenada Electricity Services Ltd. (GRENLEC)
* All rates are quoted in USD currency.
Average cost of water for businesses
|Fixed Monthly Charge (US$)|
|Less than 2, 800||2.98|
|2,800 – 5,500||4.97|
|Greater than 5,500||7.45|
Below 2,800 gals/mth. – 5.52
2,801 – 20,000 gals/mth. – 12.42
20,001 – 100,000 gals/mth.-51.53
Over 100,000 gals/mth. – 202.44
Source: National Water and Sewage Authority (NAWASA)
* All rates are quoted in USD currency.
Major Internationally Renowned Brands within your country
ØØ Scotia Bank
ØØ Western Union
ØØ Money Gram
ØØ Camper & Nicholson Marina
ØØ Rex Resorts
ØØ Crowne Plaza
ØØ PKF Accountants
ØØ Royal Bank of Canada