Financial Crime Takes a Tooth on Grenada’s Economy

Grenada, a tiny island nation, is grappling with the severe consequences of financial crime on its economy. A recent survey reveals alarming statistics: nearly half of the population has lost their jobs or seen a reduction in salaries, while 40% are forced to eat less preferred foods or skip meals altogether due to increasing food prices.

The Devastating Impact

• 46% of the population has lost their jobs or experienced reduced salaries
• 40% are forced to eat less preferred foods or skip meals due to increasing food prices
• Experts warn that the ongoing economic crisis will push almost half the population into unemployment and increase severe poverty from 2.4% pre-pandemic to 18.4%

Underlying Challenges

Grenada’s economy is already fragile, with:

• High levels of inequality, unemployment, and poverty (54.8% of the population lives in poverty or at risk of becoming poor)
• Declining agricultural sector due to hurricanes and abnormal weather patterns
• Rural-urban migration creating housing and social problems
• Emigration resulting in shortages in key sectors (71% of skilled workers have left the country)

Remittances: A Mixed Blessing

While remittances provide income support for Grenadian families, their volatility can exacerbate hardships.

Vulnerability and Resilience

Grenada’s vulnerability is further compounded by:

• Housing settlements located on the coastline, riverbanks, and steep slopes, making them prone to natural disasters
• The country’s reliance on remittances, which can be unpredictable

Government Response and Next Steps

The government acknowledges the severity of the situation and is working to address the root causes of financial crime. However, more needs to be done to support vulnerable groups such as:

• Children and female-headed households who are among the poorest and most food-insecure in the country