News

Dominica is expected to keep moving forward in 2025, with the economy projected to grow by 4.2% and inflation expected to settle around 2%—right in line with global price trends.

Finance Minister, Honourable Dr. Irving McIntyre, says the government is keeping a close eye on spending while continuing to grow the economy. He shared that the 2025–2026 budget is set to produce a primary surplus equal to 1% of GDP. That means the country is taking in more revenue than it’s spending on day-to-day operations—something he credits to strong revenue growth and careful budgeting.

“We’re expecting all major tax categories to grow by around 4.5% this year,” Dr. McIntyre explained. “That shows we’re making progress in both economic activity and tax administration.”

On top of that, revenue from Dominica’s Citizenship by Investment (CBI) Programme is holding steady. That’s helping support a significant boost in capital spending—up 9.6% over last year. In fact, capital investments now make up about 32% of the nation’s total economic output. Recurrent spending (which covers things like wages and transfers) is also expected to grow by about 7.6%, mainly due to increased spending on personal emoluments.

Looking ahead, the Finance Minister believes Dominica’s finances will keep improving in the coming years, thanks to steady revenue growth and careful management of spending.

But he also pointed out a few things that could threaten that outlook. These include ongoing geopolitical tensions, climate-related disasters, and any unexpected dips in CBI revenue. “Those risks could slow down project delivery and hurt growth,” Dr. McIntyre warned.

Still, there’s reason to be hopeful. If key infrastructure projects like the international airport and the marina deliver strong returns, or if the new geothermal plant gets up and running, the economy could perform even better than expected. A global economic boost would help too.

To protect Dominica’s finances long-term, the government is rolling out several reforms, including a Fiscal Responsibility Framework in 2026, a Debt Repayment Fund, and a Vulnerable Risk and Resilience Fund to help weather future shocks.

“This budget was crafted with all these realities in mind,” the Finance Minister said. “We’re focused on encouraging growth, staying financially disciplined, and building a stronger, more resilient economy for the future.”