IMF predicts economic growth of 4.5% for Dominica in 2024/25: PM Skerrt

Wednesday, 20th March 2024

Dominican PM Skerrit vows to stand with Grenada after Hurricane Beryl devastation

In a recent press conference, Prime Minister Dr Roosevelt Skerrit shared optimistic forecasts about Dominica's economy. He cited the report of the International Monetary Fund and announced an expected economic growth of 4.5% for 2024-2025. During the conference, he said that this positive growth in economy is due to a major surge in stayover tourism which are now falling back to the pre-pandemic levels. Other factors which are contributing to the growth includes the expansion in agriculture and major advancements in priority infrastructure projects.

IMF predicts positive economic growth for Dominica

PM Roosevelt Skerrit quoted, "IMF report said that the inflation fell from its 2022 peak of 9.7% to 2.3% at the end of 2023." He said that the IMF also predicted a reduction in inflation to 2% by next year which will be facilitated by the nation's shift to geothermal energy production and the progress of significant infrastructure projects which includes the international airport and hotel expansions. According to the Prime Minister, the IMF has lauded the Government of Dominica for the measures taken during the last year to reduce spending, citing a decline in the public wage bill. While talking about fiscal management and public debt, PM Skerrit asserted the IMF's recognition of Dominica's continuous efforts in fiscal consolidation, which has contributed highly to a projected reduction in public debt. In addition to this, the IMF also commended the Government's measures to curtail spending and focused on areas such as public wages and debt management. In spite of challenges, such as increased public debt and limited fiscal space, the Government's strategic actions are set to enhance the financial landscape in the coming years.

Major developments ongoing in Dominica

Dr Skerrit also talked about the significant recovery in the tourism sector and infrastructure development and said that both these areas are highly important in Dominica's economic strategy. He highlighted the importance of tourism figures returning to pre-pandemic levels and pointed to many key infrastructure projects which are underway in the Commonwealth of Dominica. The Prime Minister quoted that the ongoing projects include the construction of an international airport, which promises to boost the local economy by providing direct and indirect employment opportunities to locals and supporting ancillary services such as fishing, farming and hospitality. About energy initiatives and housing programs, PM Skerrit said that the transition to geothermal energy as a cornerstone for reducing electricity costs and fostering sustainable growth. He mentioned that the Government is working rapidly to provide climate resilient houses to the citizens affected by Hurricane Maria in 2017 and said that by the end of the year, additional 250 houses will be handed over to citizens. Not only this, but the Prime Minister also talked about the upliftment of the educational sector saying that efforts are ongoing to resolve outstanding tuition fees for Dominican students abroad. PM Skerrit also mentioned the investments made in local infrastructure including the road projects and the execution of hydroponic systems to boost agricultural productivity. He also discussed the environmental issues and mentioned the legislation for whale protection and establishment of a marine reserve in the Commonwealth of Dominica. PM Skerrit said that the Government is committed to protect its marine resources including the species. Throughout the conference, the Prime Minister reiterated his support towards the locals and encouraged the citizens to contribute positively to the development of the country while stressing upon the importance of collective effort of achieving national goals.