Its contribution to GDP, however, is shrinking steadily. Tourism, on the other hand, shows continued growth and is Grenada s major source of foreign exchange. An offshore financial sector has also been established although there has been some international concern about the selling of economic citizenships. Economic and Trade Policy Directions Grenada is known as the Spice Island and is the world leader in the production of nutmeg and mace. Other major agricultural products are cocoa, bananas and tropical fruits and vegetables.
Diversification is a priority.
Production of nutmeg and its by-products cannot sustain the island s economic growth and there have been setbacks in banana production. With the recent dispute about bananas in the WTO, there is some doubt as to whether Grenada will remain a banana exporter. Tourism is a growing sector in Grenada. Stopover visitor arrivals have risen steadily to 115,000 in 1998 with cruise ship arrivals at 266,000. Tourism continues to be the main foreign exchange earner.