Dominica: The Commonwealth of Dominica is progressing towards a positive economic outlook and expects a full recovery in the tourism sector in the coming future. Public investment plans and prudent fiscal management have been implemented by the government of Dominica, keeping the consistent growth at 4.5 per cent in 2023-2024, as per the IMF (International Monetary Fund).
According to the reports, with the revival of the tourism sector in Dominica at the pre-covid levels, several new tourist attractions and the construction of the new international airport are undergoing. The numbers were released through a Mission Concluding Statement from the 2023 Article IV consultation organized nationwide between 20 to 31 March.
In addition, a reduction in the inflation rate is also projected at 6.3 per cent this year which is expected to decrease further as the country follows international trends.
The statement further cited that with the increase in tourism exports, the current account deficit is predicted to narrow gradually over the medium term. The tourism exports included hotel expansions along with air transport capacity.
Furthermore, the account deficit also relates to the normalization of commodity prices and declining investment goods and imports at a steady rate. As per the sources, the public debt is also subjected to a decrease in coming years, supported by the consolidation of public finances.
The economic condition of Dominica is on the path of expansion and growth with a robust approach but also faces global inflationary shocks and headwinds.
Due to the effects of the pandemic, the estimated GDP growth was 6.9 per cent in 2021 and 5.7 per cent in 2022. Following this, the climate-resilient infrastructure was constructed, and the revival of the tourism sector began after the completion of Covid-19 restrictions in April 2022.
The reports further claimed that Russia and Ukraine war has aggravated Global commodity prices, specifically food and oil and pushed inflation up to 7.5 per cent in 2022. The risks from climate change and volatility of CBI revenue remain downside, reports added. On the other hand, the outlook for trade has been clouded by the risen geopolitical tensions and tighter global financial conditions.
The mission statement further advises that the construction of the new international airport will boost global connectivity and large markets in a significant manner. The agricultural sector is also welcome to broaden the export base and synergies with growth in the tourism sector.