News

Dominica’s economy grew by 3.5% in 2024, maintaining a pace similar to that of other regional economies. Finance Minister, Honourable Dr. Irving McIntyre, says strong wholesale and retail activity, a major public investment drive, increased tourism, and steady gains in agriculture fueled the growth.

Inflation also cooled slightly. It averaged 3.1% last year—down from 3.5% in 2023—mainly thanks to a drop in food and commodity prices.

Dr. McIntyre pointed to a record-breaking year for tax revenue. “Fiscal year 2024–2025 had the strongest tax revenue performance we've ever seen, along with a big boost in tax arrears collection,” he said. “That shows the economy is more active—and that tax administration has improved.”

All major tax categories saw growth, with revenue collections beating last year’s totals.

Value Added Tax (VAT) was a standout performer, exceeding the budget target by 3% and bringing in $9 million more than the previous year.

“VAT now makes up 41% of all tax revenue,” the Minister noted.

Taxes on income and profits also outperformed expectations, coming in higher than both the budget forecast and last year’s collections.

Non-tax revenue saw a bump too—up 3.1%—mostly due to sustained inflows from the Citizenship by Investment (CBI) programme.

“The CBI remains a major funding source, especially for capital projects. Right now, it accounts for about 58% of total revenue,” Dr. McIntyre explained.

On the spending side, recurrent expenditure rose by just 1.3%. There were increases in salaries, subsidies, and transfers, while spending on goods, services, and interest payments went down. Overall, recurrent spending stayed within the budget target for the year.

The big story on the investment side: capital expenditure jumped to $603.5 million—roughly 31% of GDP—driven by the government’s ongoing push to build out key economic infrastructure.

Looking ahead, Dominica’s economy is expected to grow by 4.2% in 2025, with medium-term growth projected to level off around 3.5% as major construction projects wind down.