The Grenadian economy has evolved over the last forty years moving from being highly dependent on agriculture to an economy relying on services. The global economic crisis strongly impacted the local economy creating strong difficulties in the fiscal sector. Furthermore, Grenada is very vulnerable to climate change and natural disasters and is still recovering from the consequences of hurricanes Ivan and Emily (2004-2005).
EU cooperation 2014-2020
Under the 11th EDF EU-cooperation Grenada has been allocated €5 million, which will focuse on the health sector and used to assist the government in ensuring proficient health care for the inhabitants of Grenada.
EU cooperation 2008-2013
Under the 10th EDF, the EU allocated €8 million to Grenada to support poverty reduction through human resources development, education programmes, training and food security management.
As a member of the Caribbean Community (CARICOM) and the Forum of the Caribbean Group of African, Caribbean and Pacific ACP States (CARIFORUM), Grenada benefits from regional programmes funded under the Caribbean Regional Indicative Programmes.
Grenada is also a signatory of the CARIFORUM-EU Economic Partnership Agreement (EPA), a comprehensive free trade agreement with a strong focus on development cooperation.