Roseau, Dominica: The Commonwealth of Dominica is progressing towards a positive economic outlook and expects the tourism industry to recover soon.
According to the IMF, the Dominican government has completed public investment programmes and practised careful budgetary management to maintain sustained growth at 4.5% in 2023–2024. (International Monetary Fund).
The development of a new international airport and several other tourist attractions are reportedly underway in Dominica as the tourism industry is returning to its pre-covid levels. The data was disclosed in a Mission Final Statement from the 2023 Article IV consultation conducted nationally between March 20 and March 31.
In addition, a decline in inflation is also expected, with this year’s anticipated rate of 6.3% expected to drop even more as the nation follows global trends.
The statement also noted that the current account deficit is expected to decrease steadily over the medium term due to the growth in tourism exports. Hotel expansions and increased air transport capacity were included in the tourism exports.
The predicted GDP growth in 2021 and 2022 due to the pandemic was 6.9% and 5.7%, respectively. The construction of climate-resilient infrastructure took place, and after the Covid-19 restrictions were lifted in April 2022, the tourism industry began to recover.
According to additional studies, the war between Russia and Ukraine has exacerbated global commodity prices, particularly those for food and energy, and increased inflation to 7.5% in 2022.
The papers also stated that there are still adverse climate change risks and CBI revenue unpredictability. On the other hand, the prognosis for commerce has been dimmed by escalating geopolitical unrest and tighter global financial conditions.
The statement further states that developing the new international airport will significantly improve significant markets and worldwide connectivity. The agriculture sector is also welcomed to increase exports and create synergies with the expansion of the tourism industry.