ROSEAU, Dominica, CMC -The Dominica government has welcomed the International Monetary Fund (IMF) ‘s latest report on the island’s economic performance, which predicts an average growth of 4.5 percent this year.
The Washington-based financial institution has attributed the projected growth to stayover tourism returning to pre-pandemic levels, agriculture expansion initiatives, and advancements in priority infrastructure projects.
“The outlook remains positive, predicated on the full recovery of stayover arrivals, implementation of critical investment plans, and prudent fiscal management.
“Inflation is projected to converge to 2 percent consistent with trading partner dynamics. The transition to geothermal production, the new airport and hotel projects to expand tourism capacity, and projects to bolster resilient infrastructure are expected to yield long-term growth dividends and reduce external imbalances,” the IMF said in its report earlier this month.
Prime Minister Roosevelt Skerrit told a news conference that while the IMF had noted that inflation fell from its peak of 9.7 percent to 2.3 percent at the end of last year, he is “aware that many of you continue to raise concerns about the price of goods and the impact of imported inflation due to various world events) on our price structure.”
But he said, “I think we can take some comfort from these numbers as we look ahead to 2025.” Skerrit added that the IMF “pointed to our challenges with elevated public debt and a tight fiscal space but said public debt is set to decline in coming years based on the government’s conscientious efforts to consolidate and boost public finances.”
Skerrit told reporters that the IMF commended the government for its spending reduction measures in the past year, citing a decline in the public wage bill.
“Like the IMF, we have long acknowledged the risks to our CBI (Citizenship by Investment Programme) program stemming from an uncertain global environment and the potential negative impacts of climate change.
“I have previously underscored the impact of geopolitical tensions leading to adverse global financial conditions affecting trade and commodity prices. Dominica, as you know, is vulnerable to natural disasters, which have in the past led to substantial capital losses and widespread devastation of the economy, thus hindering our growth.
“These challenges do exist, and we face them head-on every day. But make no mistake—this is a good report card from the International Monetary Fund. Despite the many shocks to our economy since 2015, Dominica is making strides towards real, sustainable growth and recovery,” Skerrit told the news conference.
He said the IMF is proposing more ambitious measures to protect Dominica against disaster risks and broaden the revenue base, including implementing investment projects with high economic returns such as the international airport, geothermal, hotels, the extension of the Douglas Charles Airport, and the Cable Car.
Skerrit said that the international airport in Wesley, in the north-eastern section of the island, is progressing rapidly, and a significant number of Dominicans are currently engaged in the project.
“This project will transform the island’s economic landscape, providing direct employment for skilled and capable citizens and indirect opportunities for farmers, fishers, taxi operators, vendors, hoteliers, and other service providers.
“We will soon commission the Douglas Charles Airport Expansion to ensure that we can continue to attract large numbers of visitors to our country and ease travel to our island.”
Prime Minister Skerrit said that the government has invested heavily in the exploration of geothermal energy, which will dramatically reduce electricity costs and contribute to the growth of the business sector.
“Next month, we will go to the Parliament to seek approval for an EC$103 million (One EC dollar = 0.37 cents) loan from the World Bank to construct the transmission system from the Laudat to Fond Cole.”
He said funds coming from the CBI, under which foreign investors are granted citizenship in return for making a significant contribution to the island’s socio-economic development, are being used to construct homes across Dominica “for our most vulnerable.
Prime Minister Skerrit said, “By the end of this year, we will hand over 250 homes to deserving citizens.” He added earlier this week that 42 individuals and families received keys to their resilient homes under the Housing Recovery Project.
Skerrit said the government is investing over EC$160 million in the East Coast Road, which will ease access and add value to economic activity in this part of the country. He said the government will also spend over EC$170 million on another road project, “literally opening up new pathways to economic development.
“We have recognized the urgent need to build food security and are investing heavily in fisheries, aquaculture, farm infrastructure, livestock farming—all to empower our farmers to produce more and increase their incomes from their farms.”
Skerrit also announced that six schools will be under construction throughout this year, and several hotels are near completion, enhancing the accommodation sector and taking tourism to new heights.
He told reporters there had been concern about outstanding tuition fees for Dominican students attending United States universities.
“In the past months, we have honored our commitment to our students and serviced their debts. We have reduced our bill from US$3.2 million to just over US$450,000 at one particular university.
“So, we continue to care for our students and ensure they can earn their degree. The hope is that they return to Dominica to assist in our development,” he added.
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