The Dominican Economy is projected to see growth of over four percent in 2023-2024.
This as a team from the International Monetary Fund (IMF), led by Ms. Joana Pereira, visited Roseau and held discussions on the 2023 Article IV Consultation with Dominican authorities from March 20 to 31.
At the end of this consultation, the IMF team released twelve main conclusions and recommendations that resulted from these discussions.
One of these conclusions is that the Dominican economy is expanding strongly but faces challenges due to global inflation shocks. The report stated that although severely affected by the pandemic, the real GDP growth is estimated to have reached 6.9 percent in 2021 and 5.7 percent in 2022. This growth is driven by construction of climate-resilient infrastructure, a rebound in tourism since the full lifting of covid-related restrictions in April 2022, and a substantial rise in agricultural output.
The report also states that the economic outlook for Dominica is positive. This is as a result of a full recovery in tourism, the implementation of public investment plans and prudent fiscal management. Growth is expected to stay above 4.5 percent in 2023-24, as tourism returns to pre-covid levels, and the construction of the new international airport and geothermal power plant take hold. Inflation is projected to recede to 6.3 percent in 2023 and to continue falling afterwards along with international trends.
The current account deficit is expected to gradually narrow over the medium term while public debt is set to decline in coming years.
Other recommendations mentioned in the report are the strengthening of social protection systems; modernizing supervisory frameworks to preserve financial stability; modernization of the economy and strengthening economic resilience and advancing institutional reforms to mitigate risks and support economic policymaking.
The full report can be found on https://www.imf.org/en/News/Articles/2023/04/03/cs04032023-dominica-staff-concluding-statement-of-the-2023-article-iv-mission