Ladies and gentlemen, fellow citizens I bring you greetings and well wishes as we commence a new year. I also want to thank you for your continued support during this extremely challenging period as together we seek to weather the economic storms that confront the entire world.
So far we have weathered the most serious crisis. A crisis, that has resulted in considerable declines in government revenues and contractions in almost every sector of our economy. During the first nine months of 2009, The OECS aggregate economy contracted by 7.4 %. This contraction ranged from 1.1% in St Vincent to 22.6% in Anguilla.
For the entire year, Grenada’s economy is expected to contract by 7.7%. The primary contributors to this contraction are the decline in the construction and tourism sectors. However, while the recession has affected almost every sphere of life in Grenada, there have been some bright spots.
Value added for the banks and insurance sector and the electricity and water sector recorded increases of 8.6 per cent and 2.2 per cent respectively. Of tremendous importance is the fact that Agricultural activity rose by 9.3 per cent reflecting the impact of ongoing crop recovery and rehabilitation programmes.
This notable performance so far, is clear testimony of our government’s major policy focus to revitalize the agricultural sector.
This is extremely positive as we continue our march towards national food security and the comprehensive development of one of our key resources. At the same time, we have been able to deliver on our major policy initiatives.
Our free school books programme, the free Christmas barrels and the removal of the debt service levy has contributed to about twelve percent to average disposable incomes to many Grenadians. Our improvements in education, training for our young people and the improved management of our safety nets initiatives, have all yielded benefits.
As a people, we have demonstrated considerable resilience, fortitude and patience during the past year. This has enabled us to cope and to maintain some stability within the Grenada. For this we must be thankful to the Almighty who has guided and protected us during this period.
Grenada has been a relatively peaceful place. People enjoy a greater sense of security and freedom. Freedom to express themselves, to participate, to pursue their goals and dreams, to enjoy their rights and freedoms and to do this within a country that is law abiding and demonstrates respect for our constitution.
As we look forward to a New Year, I am optimistic that our performance and economic fortunes will improve. This is because of the fact that our economic recovery program is beginning to yield many fruits. So far, we have been able to restore international financial credibility.
We have demonstrated vision, leadership and commitment to meet all of our targets. This has enabled access to funds previously unavailable from the World Bank, the IMF and the EU. Now, the major task is for us to improve our levels of productivity, our innovativeness, our creativity and our resolve to build a better Grenada.
My expectations are positive while acknowledging the ECCB’s projections for further contractions in economic activity in the OECS. It is expected that in 2010 the currency union’s real GDP is projected to decline by 2.3 per cent. Among the major sectors, decreases are projected for construction (9.7 per cent), hotels and restaurants (6.5 per cent), transport (4.7 per cent), wholesale and retail trade (2.2 per cent) and communications (1.1 per cent).
Grenada is expected to experience a 1.8 per cent decline in GDP in the year 2010.
In 2011 however, economic recovery is expected to be moderate for most member states in the ECCU with Grenada achieving a 1.81% growth in GDP. On January 15, 2010, we will outline to the nation our plans to support my optimism for a better year. We can make it happen if we continue to work together as one people. This is absolutely essential if we are to achieve the targets that we set ourselves.
The journey will not be easy but together we will surmount the many challenges.
This period in our history requires a disciplined resolve to taking the right actions not only to survive this recession but to build a sustainable Grenada. We must continue to pursue good governance practices and inclusiveness.
We must resist negative distractions and detractors. This period also requires that we must continue to look inward to our strengths, our capabilities and our resources to become more self sufficient and productive. It requires that we collectively put our shoulders to the national task of building our country.
We need to work to maintain our peace and stability which is absolutely necessary for sustaining our many gains as a society. So as we work together for a successful 2010, I wish to urge your collaboration, participation and support.
I thank you and may God bless Grenada.
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