ROSEAU, Dominica - The Dominica government has welcomed the latest report on the island’s economic performance by the International Monetary Fund (IMF) that is predicting an average 4.5 per cent growth this year.
Prime Minister Roosevelt Skerrit, speaking at news conference (CMC Photo)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 key 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 per cent to 2.3 per cent 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 said, adding 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 the government was commended by the IMF for the measures taken in the past year to decrease spending, citing a decline in the public wage bill.
“Like the IMF, we have long acknowledged the risks to our CBI (Citizenship by Investment Programme) programme stemming from an uncertain global environment as well as the potential negative impacts of climate change.
“I have previously underscored the impact of geopolitical tensions leading to adverse global financial conditions, which is affecting trade and commodity prices. Dominica as you know is vulnerable to natural disasters, which have in the past led to huge capital losses and widespread devastation of the economy, thus hindering our growth.
“These challenges do exist and we are taking them head-on, every day. But make no mistake about it, this is a good report card from the International Monetary Fund. Dominica, despite the many shocks to our economy since 2015, 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 the implementation of investment projects with high economic returns such as the international airport, geothermal, the hotels, the extension of the Douglas Charles Airport, the Cable Car.
Skerrit said that the international airport in Wesley in the north eastern section of the island, is progressing rapidly with a significant number of Dominicans currently engaged on the project.
“This is the project that will transform the island’s economic landscape, providing direct employment for skilled and capable citizens as well 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 visitors to our country in large numbers and ease travel into 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 growth of the business sector.
“Next month we will go to the Parliament to seek approval for an EC$103 million (One EC dollar=US$0.37 cents) loan from the World Bank to construct the transmission system from the Laudat to Fond Cole.”
He said with fund coming from the CBI, under which foreign investors are granted citizenship in return for making a significant contribution to the socio-economic development of the island, are being used for constructing homes across Dominica “for our most vulnerable.
“By the end of this year, we will hand over 250 homes to deserving citizens,” Prime Minister Skerrit said, adding earlier this week, 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 that will ease access and add value to economic activity in this part of the country. He said the government will also be spending 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 the course of this year; and several hotels are near completion to enhance the accommodation sector and take tourism to new heights.
He told reporters that there has been concern about outstanding tuition fees for Dominican students attending United States universities.
“In the past months, we have honoured our commitment to our students and serviced those debts. At one particular university, we have taken our bill from US$3.2 million to just over US$450 000.
“So, we are continuing to take care of our students and ensure they can earn their degree. The hope is that they return to Dominica to assist in our development,” he added.
