On Tuesday September 7th 2004, Hurricane Ivan shattered the landscape of the people of Grenada, severely damaging the physical, economical and psychological state of the OECS member country known throughout the world as the Spice Isle. 

Among the many responses, the OECS Secretariat expressed solidarity with the people of Grenada as they counted the loss of life and damage to property from the passage of the category five unfriendly weather system.

The OECS Secretariat moved immediately to help assess the impact of the hurricane on Grenada dispatching one of its senior economists to Barbados to join the emergency response team from the Caribbean Disaster Emergency Response Agency (CDERA). A team from the Secretariat followed shortly to conduct a macro economic and social impact assessment of the damage to assist with efforts at recovery.

The OECS Secretariat also embarked on in-house drive where they collected and sent household and other supplies for those in urgent need of assistance. The OECS Secretariat led a mission to undertake a Macro Assessment of the Social and Economic Direct and Indirect losses and secondary effects of Hurricane Ivan on the economy of Grenada and presented its findings in a 145 page report to the Prime Minister and his cabinet colleagues on Friday, 24 th September, in St Georges.

Overall damages were estimated at EC$2.2 billion or twice the current value of GDP. Direct damages at 90% were the most important component of overall losses, with a high concentration in the housing sector. Significant damages were also sustained to the Tourism, Telecommunications, Education, and Agriculture sectors.

Agriculture production had been lost with Cocoa and nutmeg – two main traditional crops with long period of gestation - expected not to contribute to agricultural performance for many years. Prior to the disaster the economy was expected to grow at a rate of 5.7% in 2004. No growth was expected in 2005 as a result of loss of productive sectors. Growth is predicted however for 2006 as revitalization – particularly in tourism, is realized. As a result, many of those who have lost their homes, have now lost their jobs as well. What this translates into, is a scenario in which the social consequences of Hurricane Ivan will be among the most traumatic for quite sometime to come.

Then, about nine months after Ivan, Hurricane Emily struck that island. Emily although not as harsh as Ivan, was devastating. As we reflect of Grenada’s road to recovery one year after Hurricane Ivan, here is a report by the OECS News Link’s Rondell Joseph in St. Georges. Before Hurrican Ivan Grenada’s economy was growing at a rate of 5.7%, the second largest growth rate in the OECS. The inflation rate was about 2% and the country was generating a recurrent surplus of about 5% of the GDP.

Grenada’s Finance Minister Anthony Botswain says one year on the country is recovering nicely. “We are improving gradually. Our fiscal situation is improving. Our revenue intake from customs has exceeded our expectations. Inland revenue is not doing as well but overall we are pleased to the extent that for the last three months we have been able to generate a recurrent surplus in our operations. Son things are moving slowly but in a positive direction. The construction sector is still the main sector right now and overall we We look forward to a growth in 2005 at about 7 %.” The construction sector has taken the market by storm with so many houses and buildings to be repaired or rebuilt. Minister boatswain says with the after effects of Ivan this trend will continue for the next two years.