Grenada’s Finance Minister, Hon. Nazim Burke, had some sobering words for sectoral representatives at a meeting last week Thursday. The meeting was organized by the Ministry of Finance and the Multi-partite Committee. The Finance Minister hinted that the rate of unemployment, which was as high as around 23% before the onset of the global economic crisis, is forecasted to increase over the remaining months and possible climb as high as 30% by the end of 2009. Already, there have been lay-offs in different sectors of the economy, especially in the areas of telecommunications and tourism. Tourism, which was a critical sector in the rebuilding of the country’s economy following the collapse of the agricultural sector in 2004 and 2005 (after Hurricanes Ivan and Emily respectively) has been severely affected by the global recession. Minister Burke predicts a decrease in tourist arrival and tourism earnings in the months ahead and a lower than normal economic growth of 0.5% is anticipated for this year. Burke also informed the gathering that there has been a slow down or halt in major tourism development projects which has put on hold approximately US $700 M in development. He said that of the 7 or 8 projects in various stages of development, all except one is affected in terms of the availability of financing. President of the Grenada Trades Union Council, Madonna Harford, who also addressed the gathering, predicted that there will be job cuts in different sectors and calculated that approximately 40% of the workers at LIME (formerly Cable & Wireless) might be sent home by September this year while about 10% of the workers at Caribbean Agro Industries might be sent home by month end. The trade union leader made an appeal for the removal of the income tax on the severance package of dismissed workers to help them deal with the economic crisis, since they will not be certain how long it will take them to get another job. Among other suggestions, she advised government to invest more funds into areas that are critical to economic recovery, like tourism – especially in the hotel sector. INSIDE GRENADA NEWS