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Saint Vincent and the Grenadines - Economy (Notes)

ECONOMY Banana production employs upwards of 60% of the work force and accounts for 50% of merchandise exports in St. Vincent and the Grenadines. Such reliance on one crop makes the economy vulnerable to fluctuations in banana prices and the erosion of European Union trade preferences. To combat these vulnerabilities, the Government of St. Vincent and the Grenadines is focused on diversifying its economy away from reliance on bananas. Although less prominent than in other Eastern Caribbean countries, tourism has grown to become a very important part of the economy, and the chief earner of foreign exchange. The Grenadines have become a favorite of high-end tourism and the focus of new development in the country. In 1996, new cruise ship and ferry berths came on line, sharply increasing the number of passenger arrivals. In 2004, total visitor arrivals numbered 160,000. St. Vincent and the Grenadines' currency is the Eastern Caribbean Dollar (EC$), a regional currency shared among members of the Eastern Caribbean Currency Union (ECCU). The Eastern Caribbean Central Bank (ECCB) issues the EC$, manages monetary policy, and regulates and supervises commercial banking activities in its member countries. The ECCB has kept the EC$ pegged at EC$2.7=U.S. $1. St. Vincent and the Grenadines is a beneficiary of the U.S. Caribbean Basin Initiative that grants duty-free entry into the United States for many goods. St. Vincent and the Grenadines also belongs to the predominantly English-speaking Caribbean Community and Common Market (CARICOM) and the CARICOM Single Market and Economy (CSME).