Grenada battles debt, unemployment

The government in Grenada said it would not cut public sector jobs even as the country grapples with the effects of the global economic downturn.



The finance minister Nazim Burke said the government intends to borrow more to stimulate the economy despite Grenada\'s large debt burden, which exceeds the country\'s total economic output.



A quarter of Grenada’s population is unemployed, and the government has had to extend its social welfare programmes.



Mr. Burke said foreign direct investment has taken a massive hit, with nearly $700 million worth of construction work virtually grinding to a halt.



He also said the government is seeking ways to keep the economy afloat, even as it faces a budget shortfall of around $20 million.