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Grenada is an independent state located in the eastern part of the Caribbean Sea , north of the islands of Trinidad and Tobago. Its population numbers about 100,000. The territory is divided into seven administrative divisions called parishes, six on the main island of Grenada and one on the island of Carriacou . The country's total land surface area is 344 km 2. The mountainous islands are of volcanic origin, and the shallow soil, composed mainly of clay and sand, retains little moisture and has a marked tendency to erode. Less than 6 per cent of the land is arable.

Grenada lies in the path of the northeast trade winds and is vulnerable to the tropical storms and hurricanes that pass through the region from June to November every year, often causing serious damage. When Hurricane Ivan struck in 2004, 90 per cent of Grenada's homes were damaged and 91 per cent of the island's forest areas and watersheds were destroyed. An active underwater volcano that lies offshore poses the threat of an eruption that could cause tidal waves and otherwise affect the islands.

Agriculture accounts for less than 8 per cent of the gross domestic product (GDP) (World Bank, 2000) and employs 17 per cent of the population. It also accounts for about 40 per cent of exports. The main crops are cocoa, nutmeg and bananas, and farmers also cultivate a wide range of root crops and tree crops. Smallholders raise livestock largely for home consumption. Small ruminants are a vital resource for many households, particularly those headed by women. The government is encouraging the production of poultry to reduce poultry imports and provide organic manure.

Food items represent about 26 per cent of the country's total imports. Over the last several years, the agricultural sector has seen decreased productivity, inadequate inputs and infestation by pests and diseases. One result was that, because of poor-quality production, banana exports were blocked for two years. In 2004 the agricultural sector was hard-hit by Hurricane Ivan, which uprooted 90 per cent of the nutmeg crop — the principal export — and destroyed 60 per cent of the cocoa crop.

Economy

In 2004 Grenada's GDP amounted to US$436.1 million, and gross national income per capita was US$3,760. The national debt more than doubled between 2000 and 2004. Over the last two decades, tourism has become the main source of foreign exchange earnings. Grenada's economy is adversely affected by a lack of integration among economic sectors. For example, Grenadians rely heavily on imported items to service the tourist sector, but little effort is made to develop domestic capacity to provide such items.

Source: IFAD