Saint Vincent and the Grenadines Economy Profile 2009

Economy - overview

Economic growth slowed in 2008 after reaching a 10-year high of nearly 7% in 2006, and will likely slow in 2009 with the global economic downturn, though it will be above average for Latin America. Success of the economy hinges upon seasonal variations in agriculture, tourism, and construction activity as well as remittance inflows. Much of the workforce is employed in banana production and tourism, but persistent high unemployment has prompted many to leave the islands. This lower-middle-income country is vulnerable to natural disasters - tropical storms wiped out substantial portions of crops in 1994, 1995, and 2002. In 2007, the islands had more than 200,000 tourist arrivals, mostly to the Grenadines. Saint Vincent is home to a small offshore banking sector and has moved to adopt international regulatory standards. The government's ability to invest in social programs and respond to external shocks is constrained by its high debt burden - 25% of current revenues are directed towards debt servicing. An agreement with Italy to write-off debt reduced the public debt-to-GDP ratio to about 70%. The GONSALVES administration is directing government resources to infrastructure projects, including a new international airport that is expected to be completed in 2011.

GDP (purchasing power parity)

$1.07 billion (2008 est.)
$1.06 billion (2007 est.)
$991 million (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$601 million (2008 est.)

GDP - real growth rate

0.9% (2008 est.)
7% (2007 est.)
7.6% (2006 est.)

GDP - per capita (PPP)

$10,200 (2008 est.)
$10,100 (2007 est.)
$9,400 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 10%
industry: 26%
services: 64% (2001 est.)

Population below poverty line

NA%

Labor force

57,520 (2007 est.)

Labor force - by occupation

agriculture: 26%
industry: 17%
services: 57% (1980 est.)

Unemployment rate

15% (2001 est.)

Household income or consumption by percentage share

lowest 10%: NA%
highest 10%: NA%

Budget

revenues: $94.6 million
expenditures: $85.8 million (2000 est.)

Inflation rate (consumer prices)

6.1% (2007 est.)

Central bank discount rate

6.5% (31 December 2008)
6.5% (31 December 2007)

Commercial bank prime lending rate

NA% (31 December 2008)
8.8% (31 December 2007)

Stock of money

$NA (31 December 2008)
$155.5 million (31 December 2007)

Stock of quasi money

$NA (31 December 2008)
$280.2 million (31 December 2007)

Stock of domestic credit

$NA (31 December 2008)
$387.8 million (31 December 2007)

Industries

food processing, cement, furniture, clothing, starch

Electricity - production

129 million kWh (2006 est.)

Electricity - production by source

fossil fuel: 69.3%
hydro: 30.7%
nuclear: 0%
other: 0% (2001)

Electricity - consumption

120 million kWh (2006 est.)

Electricity - exports

0 kWh (2007 est.)

Electricity - imports

0 kWh (2007 est.)

Oil - production

0 bbl/day (2007 est.)

Oil - consumption

1,570 bbl/day (2006 est.)

Oil - imports

1,460 bbl/day (2005)

Oil - exports

0 bbl/day (2005)

Oil - proved reserves

0 bbl (1 January 2006 est.)

Natural gas - production

0 cu m (2007 est.)

Natural gas - consumption

0 cu m (2007 est.)

Natural gas - exports

0 cu m (2007 est.)

Natural gas - imports

0 cu m (2007 est.)

Natural gas - proved reserves

0 cu m (1 January 2006 est.)

Current Account Balance

-$149 million (2007 est.)

Agriculture - products

bananas, coconuts, sweet potatoes, spices; small numbers of cattle, sheep, pigs, goats; fish

Exports

$193 million (2006)

Exports - commodities

bananas, eddoes and dasheen (taro), arrowroot starch; tennis racquets

Exports - partners

Greece 38.8%, France 23.1%, Italy 9.2% (2008)

Imports

$578 million (2006)

Imports - commodities

foodstuffs, machinery and equipment, chemicals and fertilizers, minerals and fuels

Imports - partners

Singapore 27.3%, Trinidad and Tobago 13.3%, US 12.2%, China 7.3%, Italy 7.2%, Norway 5.2% (2008)

Debt - external

$223 million (2004)

Economic aid - recipient

$4.89 million (1995); note - EU $34.5 million (2005)

Currency (code)

XCD

Currency (code)

East Caribbean dollar (XCD)

Exchange rates

East Caribbean dollars (XCD) per US dollar - 2.7 (2007), 2.7 (2006), 2.7 (2005), 2.7 (2004), 2.7 (2003)

Fiscal year

calendar year