Page "Economy of Grenada" Paragraph 1

Economic growth picked up in the late 1990s following slow growth and domestic fiscal adjustment in early years of the decade.

Despite an expansionary fiscal policy, the public debt remained moderate at around 50 percent of GDP as deficits were financed partly by privatization receipts.

Since 2001, economic growth declined caused by adverse shocks such as a slowdown in the global economy and natural disasters.

To deal with the shocks, fiscal policy became more expansionary while privatization receipts declined.

As a result, public debt increased sharply to near 110 percent of GDP in 2003.

Economic conditions worsened when Hurricane Ivan hit the country in September 2004 ; progress in fiscal consolidation was impeded as government revenues fell and policy priority was shifted to post-hurricane relief.