budget statement 2012.indd - Grenada Customs & Excise Division
budget statement 2012.indd - Grenada Customs & Excise Division
budget statement 2012.indd - Grenada Customs & Excise Division
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I now turn to prospects for the Grenadian economy.<br />
3.5 Prospects for the Grenadian Economy<br />
Mr. Speaker, economic activity in <strong>Grenada</strong> is on the rise.<br />
For 2012, <strong>Grenada</strong> is projected to grow by 1.5 - 2.0 percent. This<br />
projected growth will be influenced by increased activity in all sectors<br />
but especially the recovery in Construction and continued growth in<br />
Tourism and Agriculture.<br />
Several factors will influence growth this year including:<br />
The performance of the US and European economies: Like the<br />
ECCU, this forecast will be influenced by developments in the USA<br />
and Europe especially the UK. Higher growth in these economies<br />
will accelerate <strong>Grenada</strong>’s recovery.<br />
The Price of Oil: Higher oil prices will have a negative impact<br />
on growth. Prices are usually highest in the summer months when<br />
demand for oil peaks. However, we have already witnessed a steady<br />
increase since the start of this year. Rising oil prices reflect geopolitical<br />
tensions among key oil exporters, speculation and the closure<br />
of several refineries.<br />
Implementation of the Transformation Agenda: Public and private<br />
investments in the transformational sectors are critical to both growth<br />
and job creation. These investments will have a positive effect on<br />
growth in <strong>Grenada</strong>.<br />
Rate of Project Implementation: Faster implementation of projects<br />
will have a positive effect on growth. Government is sparing no effort<br />
to expedite the implementation of the major projects programme<br />
announced by the Prime Minister last September. The Major Projects<br />
Coordination Committee is active and reports to Cabinet once per<br />
month.<br />
This brings me to the Focus and Theme of the 2012 Budget.<br />
Page 20<br />
2012 Budget Statement