According to an article by S. Brian Samuel, “in 2013, Grenada led the region in growth in Foreign Direct Investment (FDI), thanks to the Sandals surge”.
According to the article “Going back a few years to the heady days of 2007, when Grenada received US$172 million in FDI, we then had a five-year free-fall, when capital inflows shrank to just US$32.6 million in 2012. However, things improved in 2013, when Grenada’s FDI inflows rose to US$78 million; a 139% increase over 2012”.
Well, that’s great news for Grenada, but the big question is what’s going to happen in 2014 and beyond?
Accodring to the article “The reality is that for virtually all Caribbean economies; foreign investment is still the main driver of growth”.
But Sandals is finished building, so there needs to be more of such significant foreign investment projects coming on stream in order for Grenada to continue growing.
S. Brian Samuel thinks that at least in 2014 we sould expect a fall back.
He said ” Now Sandals is finished, and there is no sign of any construction about to start on any other projects, so we can expect that 2014 will see Grenadian FDI inflows to fall back to its pre-Sandals levels; unless something very dramatic happens soon. The government reports that several big tourism projects are in the pipeline; and indeed there is evidence of action bubbling underneath the surface. But project development and the securing of long-term financing in the Caribbean can be a notoriously lengthy process, so it is unlikely that 2014 will see any significant investment activity on the ground in Grenada”.
News source: http://nowgrenada.com/2014/06/foreign-investment-grenada-oecs/