ST. GEORGE’S, Grenada-MINISTER with responsibility for Finance, Nazim Burke, last week stated that if the impacts of the global economic crisis are not stemmed in Grenada unemployment may reach as high as 30 percent before year’s end.
Speaking at the National Consultation on the Economy, Burke said that the spike in unemployment over recent years from 18 to 24 percent due to recessions in critical markets must be seriously addressed and controlled in light of the growing global economic crisis.
“Since the onset of the crisis we have already seen some layoffs in tourism and the telecommunications industry. We are anticipating that by the end of the year we could see unemployment as high as 30 percent,” Burke said.
Because Grenada has become increasingly dependent upon tourism since a decline in coconut, nutmeg and banana production, Burke said that the country must not be lulled into a false sense of security based on some tourism numbers.
“There are about seven or eight projects which are in different stages of development, all of which are affected but one as far as financing is concerned. There is also a projected decline in tourism arrivals and tourism earnings.
“While we have not seen any significant drop in the numbers of cruise ship passenger arrivals…the numbers for stay over passengers have fallen and their spending has also fallen,” the minister warned the gathered stakeholders.
With LIME and Carib Agro Industries, two of the nation’s top employers, expected to have significant layoffs in 2009, Burke advised the nation to be prepared for deceleration in economic growth to as low as 0.5 percent.
Grenada News