Grenada profile

Demography and Health

Grenada is a compact island nation with a total population of about 117,000 people in 2024, placing it among the smaller populations globally. The demographic structure is characterized by a birth rate of 11.7 per 1,000 people and a crude death rate of 8.86 per 1,000, indicating gradual natural growth rather than rapid population expansion. Life expectancy at birth sits at 75.2 years (2023), reflecting relatively favorable health outcomes for a small Caribbean economy. Child health remains a work in progress, with under-5 mortality at 18.3 per 1,000 live births (2023), signaling room for improvement in early childhood health services and access. Net migration is negative, with -192 people in 2024 indicating a small outflow that can, over time, influence the skilled labor pool and dependency ratios. The labor market shows an unemployment rate of 6.34% (2023), suggesting reasonable employment conditions given the country’s size and structure, though sectoral dynamics—particularly in tourism and services—will shape employment more than the headline rate alone. Digital connectivity is strong, with 74.1% of the population using the Internet in 2023, a foundation for e-government, online services, and digital entrepreneurship. Health financing reveals a modest footprint: current health expenditure is 4.95% of GDP (2022), and domestic health expenditure per capita, adjusted for purchasing power, is 371 international dollars (2022), indicating a health system that provides essential services while leaving room for scaling up investment and efficiency. Governance indicators related to the rule of law and corruption are positive (rule of law 0.605 and control of corruption 0.558), supporting predictable legal processes and integrity. Yet regulatory quality (0.315) and government effectiveness near zero (-0.006) point to opportunities to streamline regulations and public service delivery to support a higher-performing health and social system as Grenada grows.

Economy

Grenada’s economy is characterized by a small, service-oriented footprint with notable macro stability and external linkages. Nominal GDP per capita stands at 11,872 US dollars in 2024, while purchasing power parity per capita is higher at 20,167 international dollars, reflecting meaningful purchasing power for residents within the local context. Inflation remains low at 1.09% in 2024, suggesting price stability that supports household budgeting and investment planning. The unemployment rate at 6.34% (2023) indicates a relatively sound labor market for a small economy, though sectoral diversification remains critical for resilience. The country benefits from strong foreign direct investment inflows, with net FDI as a share of GDP at 16.2% in 2024, ranking Grenada among the higher FDI recipients relative to its size and signaling investor confidence and capital available for growth, infrastructure, and tourism-related development. The current account balance is negative, at -19.5% of GDP in 2024, highlighting a substantial external financing requirement likely tied to import needs and investment activity typical of an open, tourism-driven economy. GDP per capita in PPP terms is 20,167, underscoring that residents enjoy substantial purchasing power within Grenada’s small market. The economy also shows a modest footprint in high-technology exports (420,417 US$ in 2023), indicating a limited role for advanced manufacturing in the export mix. Energy and environment intersect with the economy: renewables account for 10% of total final energy consumption (2022), while total greenhouse gas emissions per capita are 1.71 t CO2e, both signaling ongoing opportunities to decarbonize and improve energy security without sacrificing growth. Taken together, Grenada’s economic profile combines stability and investment vitality with external susceptibility and a need to deepen export sophistication and energy resilience, a path likely anchored in continued FDI, tourism, and service-sector expansion.

Trade and Investment

Trade and investment dynamics in Grenada are defined by a remarkably strong openness to foreign capital and a logistics framework that supports commerce with some caveats. Foreign direct investment net inflows amount to 16.2% of GDP in 2024, ranking Grenada among the top destinations for FDI relative to its economic size and signaling a favorable investment climate that draws capital for tourism, infrastructure, and services. The logistics environment, measured by the Logistics Performance Index for quality of trade and transport-related infrastructure, is 2.5 on a 1–5 scale in 2022, with a rank around 21, indicating moderate but improvable efficiency in transport and trade logistics. The current account balance remains negative at -19.5% of GDP (2024), underscoring ongoing dependence on external financing to fund imports and investment while reflecting the currency of a tourism- and services-led economy. Grenada’s external trade stance is further shaped by limited high-technology exports, which stand at 420,417 US$ (2023), pointing to an export profile that remains concentrated in services and traditional goods rather than advanced manufacturing. Internet penetration at 74.1% (2023) enhances cross-border trade and e-commerce potential, while the energy and environmental context—renewable energy at 10% of total final energy consumption (2022) and per-capita emissions of 1.71 t CO2e—suggests that trade-related energy costs and climate considerations will factor into competitiveness and policy choices. Collectively, Grenada presents a climate for attracting foreign investment and advancing services-led growth, but to strengthen resilience the economy would benefit from broadened export bases, efficiency gains in logistics, and continued diversification of energy sources to reduce external vulnerability.

Governance and Institutions

Grenada’s governance landscape combines stability with a mix of strengths and vulnerabilities in public administration. Political Stability and Absence of Violence/Terrorism score 1.02 in 2023, indicating a reasonably stable political environment by international benchmarks. The regulatory quality index stands at 0.315, suggesting that policy frameworks exist to support business and markets but could be further refined to improve predictability and ease of doing business. The rule of law is relatively solid at 0.605, with control of corruption at 0.558 reflecting a credible degree of governance integrity. Government effectiveness is measured at -0.006, indicating a near-neutral performance of public institutions, which may reflect capacity constraints or administrative bottlenecks rather than systemic weaknesses. In short, Grenada benefits from political stability and a generally functioning legal framework, but there is room to strengthen regulatory quality and public sector performance to better translate policy into faster administrative processes, more consistent rule enforcement, and a more conducive environment for investment and inclusive growth.

Infrastructure and Technology

Grenada exhibits a solid digital footprint with 74.1% of the population using the Internet in 2023, creating a platform for digital services, entrepreneurship, and government-citizen interactions. The country’s logistics infrastructure—captured by a 2.5 score on the Logistics Performance Index for trade and transport-related infrastructure (2022)—reflects a functional but improvable system for moving goods domestically and internationally, with potential efficiency gains through capital investment and process reforms. On energy, renewables accounted for 10% of total final energy consumption in 2022, indicating that the country has begun the transition to cleaner energy but remains dependent on non-renewable sources for much of its energy needs. Economic infrastructure options, including digital connectivity and tourism-ready facilities, are supported by the modest yet meaningful investment environment evidenced by high FDI inflows. Grenada’s high-technology exports are relatively small (420,417 US$ in 2023), signaling limited domestic hi-tech manufacturing activity and the opportunity to expand knowledge-based sectors. The population base is small, with GDP per capita of 11,872 US$ (2024) and PPP of 20,167, suggesting a population that can be efficiently served by targeted infrastructure upgrades and digital services. Overall, Grenada’s infrastructure and technology profile shows strong connectivity and potential for growth in digital governance and service delivery, coupled with opportunities to upgrade physical logistics and diversify energy sources to support sustainable development.

Environment and Sustainability

Grenada’s environmental profile reflects a small island economy at a crossroads of development and resilience. Water resources show low stress levels, with freshwater withdrawal as a share of available resources at 7.05% (2021), indicating that current water use does not push limits of supply but could become tighter with climate variability or growth pressures. Renewable energy accounts for 10% of total final energy consumption in 2022, signaling a strategic but incomplete transition toward cleaner energy and a potential area for policy emphasis to reduce import dependence and energy costs. Total greenhouse gas emissions per capita stand at 1.71 t CO2e, a relatively low emissions footprint aligned with Grenada’s small population and energy profile, though climate vulnerability remains a critical concern for a small island developing state. Population size, life expectancy, and health indicators weave into sustainability considerations, emphasizing the need to invest in climate-resilient infrastructure, sustainable tourism practices, water management, and a diversified energy mix. Taken together, Grenada’s environment and sustainability indicators illustrate progress toward cleaner energy and lower emissions, while underscoring the importance of resilience-building measures in the face of climate risk and resource constraints.