Grenada's prime minister Tillman Thomas expects the Caribbean island's economy to shrink 1.8 per cent in 2010 before returning to growth in 2011.

The gross domestic product fell 7.7 per cent in 2009 due largely to declines in construction and tourism.

Prime Minister Tillman Thomas said in a New Year's message broadcast Friday that an economic recovery program nevertheless has helped the island to "restore international financial credibility". He said the government now has access to previously unavailable funds from the World Bank, Inter-national Monetary Fund and European Union.

He urged islanders to show more self-sufficiency and productivity over the year ahead as the nation tries to recover.

- AP