Dominica’s economic recovery continues but it’s losing momentum.
That’s according to a report from the just concluded IMF Article IV consultation with Dominica.
“The economic recovery continues, but is losing momentum,” the report said. “Over the past two years, Dominica’s economy grew at a tepid rate of about 1 percent, supported by a notable fiscal stimulus, and output recovered to its pre-crisis peak,” the reported stated.
However the IMF said this growth has decelerated in 2012 due to weakening external and domestic demand and it forecast growth of just 1/2 percent of Gross Domestic Product in 2012.
“Weak demand has kept price pressures subdued and, along with a recovery in service receipts, contributed to a significant adjustment in the external current account deficit. While rising world food prices may contribute to a modest pickup in inflation and weigh on the balance of payments in 2012, pressures are expected to subside later next year.” the report stated.
The IMF is warning that heightened global uncertainty and the planned stoppage of flights from the only non-regional carrier servicing Dominica are near-term issues the island faces
However, it said geothermal energy development and the opening of new tourist facilities could strengthen the long-term outlook.
The IMF said the island faces other problems in the financial sector. “Weak growth and the earlier failure of regional insurance companies have weakened the resilience of the financial sector in some areas. While the system as a whole remains highly liquid, nonperforming loans and exposures to the failed insurance companies remain a drag on financial sector’s income and capitalization, especially in the large credit union sector,” the report pointed out.
According to the IMF, monetary conditions have not eased meaningfully in Dominica. “With policy and lending rates stable throughout the crisis ― as monetary policy in the Eastern Caribbean Currency Union remains fully committed to maintaining the hard peg to the U.S. dollar ― Dominica has not benefited from the significantly eased U.S. monetary policy rates,” according to the report.
It noted that the overall central government deficit widened to about 4½ percent of GDP in fiscal year 2011–12 and pushed debt to over 70 percent of GDP, almost 7 percentage points above pre-crisis.
The IMF is suggesting that prudent macroeconomic policies, enhanced vigilance in the financial sector, and accelerated structural reforms remain key to stronger growth prospects in Dominica.
Directors at the IMF emphasize that maintaining financial stability is an immediate priority for the island. They encourage the authorities to address pockets of vulnerability in credit unions to maintain confidence in the financial system at large. Decisive action is also needed to upgrade supervision, regulation, and the crisis management framework for all financial institutions, including tightening loan loss provisioning requirements,” the reported pointed out.
The IMF also stressed that revamping the structural reform agenda is necessary to foster private sector-led growth and boost competitiveness for Dominica.
@ Ted Lewis… well said Sir! I applaud you for your comments, standing ovation! Not only did you show where the government have failed, you have highlighted ways in which they could do better. Hope these ppl pay attention! Constructive Criticsm KUDOS to you my friend, well said.
JustMy2Cents
Global economy really? That’s the excuse???? Well it’s simple when global crisis you must reign in the niggeritis!!!! State palace, Red clinic, roads that are not feeder roads, grotesque levels of cronism, misallocating precious AID dollars, appointing retards in key positions, and the list goes on.
This is the time when you get smart with laser-like focus and spend ONLY on projects that bring in LEGAL foreign revenue and provide jobs for DOMINICANS. Where EVERY single cent spent has one and only one mission and thats to bring in foreign revenue.
But thats right “smart” which that administration eezn’t!
Dominica needs a “Brand New International Airport” proposed by the United Workers Party with a 10,000 ft runway. Melville Hall Airport Upgrades & Night Landing are failures since they have not addressed the Air Access issue for Dominica for the long term. Direct Access\Non Stop flights to the mainland USA, Canada, Europe will improve the economy, reduce cost & travel time for tourist, investors. Dominica remains the poorest, least developed island in the Eastern Caribbean. Jobs created by investors will reduce poverty & crime, how many more elections & decades Dominicans will have to go through before construction begins on an International Airport? Bahamas, Cayman Islands, Cuba, Jamaica, Haiti, Dominican Republic, Puerto Rico, St Thomas, St Croix, St Maarten, St Kitts & Nevis, Antigua & Barbuda, Guadeloupe, Martinique, St Lucia, Grenada, Trinidad & Tobago, Aruba, Bonaire, Curacao, Guyana all have invested in “International Airports” for Non Stop flights to USA, Canada, Europe. Why can’t we do same? St Vincent & the Grenadines began construction in August 2008 on the Argyle International Airport scheduled for completion December 2013 with operations in the first quarter 2014. Dominica will be the last “Independent” Caribbean island without Non Stop flights to the mainland USA, Canada, Europe! The question becomes how competitive will Dominica be for tourism & investment with no long term investment in aviation infrastructure? The Government of Dominica needs an aviation policy.
The grass in not always greener on the other side. I am proud to be from Dominica. Too many people only know of Dominican Republic. We need more people in Government to advertise us. I wonder what the Dominican Consulate is doing in New York, and people do not even know about Dominica. Instead of jumping on Eastern Parkway,for labor day the Dominican Consulate should have a table or a stand advertising Dominica, than just getting paid for nothing. We need every help we need. Wherever I go in the states and where I work., I let people know about Dominica. I make them google Dominica on their computer to know more about my beautiful country.
I reall advertise in my own way.
Dominica pay attention. Dominica is slowly dying. When airlines pull out, agricultural exporting is none existant, tourism is neither there nor here, we sure to fail meserably. Get rid of the non productive people in tourism, and in Government. The only thing left standing is Ross University.
We have no international airport. Too much drammar to get to Dominica. Puerto Rico, Antigua, Barbados, even St. Lucia see us an nothing in the Caribbean. Please Government, get back to getting exporting for our produce. Dominicans never use to beg government now we are. These are serious and paralizing times coming. Having a big house and you cannot pay the mortgage, what is the point. Please, the chinese are coming in and their monies and profits are not staying in Dominica. America owes China, but remember, America is still a super power. We are less than 80,000 people with a lot of division, in politics and religon. Tell me where we stand. United we stand, divided we fall. The Government and Opposition should put their differences apart and come together for the good of the country. I live in the USA, but don’t believe that all of us here have it good. We came to the USA,’cause the Government and opposition are not doing nothing constructive. I come home every year and want to come back for good, but to what. Please The Government of Dominica, let Dominica stay afloat for us to come back home. The grace is not always greener on the other side.
we can stand aside pointing fingers but one of these days I hope someone will wake up and realize that the issues facing Dominica is every Dominican’s problem. If u think u r safe where u r , whatever the country, think again.
It is quite clear to everyone that the global economic climate have impacted negatively on Dominica and will continue to do so throughout the medium term.
However , it is also clear that government did not embark on policies that would ameliorate the impact of the global crisis.
Eg- more than a 150 million spent on the airport and we yet to see the benefit. should never abandoned the idea of an international airport.
– 27 million being spent on the statehouse- no sustainable impact .
– millions spent on vouchers for housing materials during and after the election campaign ( widening of government deficit)
– small business development fund not properly executed – ( mainly party supports who today have nothing to show for the $10000 they received )
– Millions spent to promote poultry farming another good idea but poorly executed again to much politics involve . today the price of local chicken is $18.63 a kG at whitchchurch. at such high prices we will never realized a reduction in the importation of chicken.
– millions spent on unilateral transfer mainly in the red clinic . ( about 100m in the last five years.) money could go into areas that creates sustainable jobs.
– the passport money – where is it . what is it use for. little st.kitts budget to collect about 80 million this year. even if we get half that amount that’s 40million to go into productive uses.
– the lack of a structural plan to boost agriculture and manufacturing.
– the lack of a proper plan to improve our marketing strategies that will lead to an increase in our market share in the tourism industry.( discover Dominica is a waste ) Still spending money on what to do with cane field airport and improve air access when the answer is clear( international airport needed)
– Every last Friday in the month no my daughter home how teachers have to go collect salaries. Signaling low productivity in the public service.
– borrowing money to do projects and not ensuring that a significant amount of the employers are Dominicans. hence we our economy will never received the full multiplier effect of those big project.
-the rate of vat is still too high. the government don’t understand that you can increase revenue not only by increasing the rate but widening the based. maybe the technicians at the ministry of finance is not utilizing their knowledge of tax elasticities and buoyancy .
I can go on and on with a number of things that could be done differently, more effectively of efficiently so as to improve the economy of Dominica .
we need to understand that the state off the economy is not just a result of the global economy but a combination of both external and internal shocks.
oh and by the way the contagion effect of red eyes in possie need to be contained and eliminated .lol
The article also speak of retrenchment and streamlining of current expenditures. sounds like austerity back again.
Ted there is no cure fr Portsmouth. I just don’t get it ; the people refuse to make a statement even when they feeling the grind. It is so sad to see how the people are led like lambs to the slaughter house. Just a silent suffering no one kicking and screaming.
But Ted interestingly you hearing them talk in silence, they admit that there is mass corruption,increase poverty and injustice yet the very same people will follow Ato or Bowbow to a Labor Party function.
Portsmouth is indicative of Dominica’s capability. A university town with over 1500 students with l’argent and what is it? A dirty nasty ghetto. Totally disorganized. No zoning. No regulations. No standards. 98% ugly concrete monstrocities. Ugly Ugly Ugly Ugly!
Where in the world would this phenomenon occur? Dominicans just dont have it.
Singapore doing well
Hong Kong doing well
Mongolia doing well
Chile doing well
Too blame this on the world economy is utter rubbish how can Dominica grow with so much TAXES from Skerrit.
Dem fellas in Govt no Good!
you retard how can you compare dominica to those countries wtf
It has to be compared to these places, because when it is convenient to you all, it is done.
Things are bad bad bad in Dominca. A country polluted by a corrupt government ! Incapable leadership and the people so dependent on hand out. Apart from the seasonal cruseship industry the Ross University is the only thing left .
One may think that I am preaching politics but this is just a hard look at reality
I Read the IMF report and I shook my head in disbelief. From the report I get the feeling that our economy is banking heavily on the hopes that geothermal energy system becomes a reality. The other is the intended tourist accommodation center. If this is not ludicrous then what is. While the geothermal potential may ba available the installation of a geothermal pant to service Dominica may not be economically viable. As for the infrastructure and maintenace capability required to build a geothermal system to sell power to Guadeloupe and Martinique ? That too is really far fetched. The government s yet to provide a viability study on this project yet they continue to fool people with this geothermal promise. A tourist accommodation center will not necessarily transform the economy.
Quit borrowing money from these banker crooks.
i thought we doing so good we give money or loan to other countries,
how can a country develope financially when we are over taxed with miniscul salaries and high mortgage rates, rampant stealing of the countries resourses, chinese not paying the proper duties and exporting all the monies received from those dumb and dotish dominicans that continue to buy their rubbish.
how can we develope financially when that rogue government abandon agriculture, and want to give the servants 1 percent salary increase when gas and oil and food prices are sky high..
But ‘langsal’ you impossible. What you want the poor Dominicans to do when all they can get to buy in Roseau nowadays is Chinese ‘rubbish’. Every store that close down today is a Chinese store tomorrow. I glad for you. I taking my little salary and buying the Chinese ‘rubbish’ anyday. That alone Dominica have. So stupes!
they closed down all dominicans businesses yet our people think its ok. has anyone ever dealt with that asian lady that makes the windows in Fond Cole? she’ is so rude! Thats what we get.
they want to abandon the backbone of our island..agriculture, and want to develope tourisiam, people cant come to DA if no flights available cruise ships not coming, how will the tourist come. We need to get back to basic and bring DA back to where it was
DNO please post my comment. Free up the blog man! stupes!
The Dominica economy is way below….not much is being done in DA…..we are not exporting enough, salaries are low, so persons are not buying as much, the government has to put money in like Obama did…and GREED has this country down too….Agriculture is nearly dead stiff..boy oh boy!!!!!
The whole stimulus gag is a hoax. It fails every time. If they opened up the ports to free trade, this country would start to jump. But they want to keep DA down.
And we have the resources.
On another note even if the Government changes, the reality is that the world economy is on a downturn. Only our faith in God and trust will see us through. You don’t want to hear this but this is the Gospel truth, With God all things are possible. Man has increased in knowledge yes, but they make a mess of everything becoming arrogant and think they know all. With Godly wisdom and understand and puttting God first is the only way out of this. Really this is it. The Atheist won’t want to hear this and others too but this is it.
Example Man has made so many strides in IT which is good, I do enjoyed the computers, telephones etc but look around you, they have become so dependant on the IT, that they forge to use their brain – Common sense. Just my tuppence!
God has nothing to do with it.
Hope everyone reading this read with an open mind because what ever happens worldwide would of course affect DA. Please take out politics out of it and forget who is at the helm, There is an economic crisis worldwide. We all have to be inovative to assist not just the Government. We have to adjust our own economy at home as well. Look at what is happenning in Greece, not even a third world country. So infact before you make biased statements and hit at the Government, read the World news and hear about the world economy. Just giving my 2 piece.
Are you a government stooge, puppet, sycophant, beggar,mongol?. Well this lazy and incompetent gang of leaders, should have known that things are tight worldwide, and should prioritize how scarce resources should be channelled to competing ends. How do you respond to the wasting of $ 27 000 000 on a state my foot,in a poor backward and struggling economy like ours? The lack of attention to agriculture, the failure to have citizens to work on projects which involve loan money?
I know your problem is that you only see “Red”, but the same “Red” has plunged us into this abyss into which we are now….It’s an economy that will crash on all of us soon.
Let our economy move. Skerrit in charge and he is very wealthy, so the country must be wealthy too. He will share with us. Allu too like to grudge Skerrit.
Notice you hear nothing from people like Peeping Tom , Observer, Jude Nicholas and others. I guess they ran out of spins or either the wicket has too much bounce . I guess the reality of the economic situation is not important to them as long as there is zebwain yard for the yard fowls. What a disgrace.
And they cannot cover the ugly stinking drains in their main town. While by the same breath they doing like the president Robert Mugabe of Zimbabwe building themselves a $27 million palace?*/?
Figure that one out.
The palace is built by the Chinese for the Chinese.
IMF, Dominica and Dominicans not Ready Period!
Dominica is a bunch of Pretenders they are afraid of Speaking factual.
IMF, Majority of Dominica care less about report facts etc..their so call Pros don’t have the Gull to Discuss issues on a Mature Front…
The Past 12 years of this Regime has hit Dominica a Devastation Head Blow worst than Hurricane David Did back in 1979…
IMF, the Unions and other Policy Makers and the General Society embrace Poverty they will infact
Be Thankful for your report they will say..it so it go we can’t do anything for that!..
IMF…Sum that up what does that tell you in the Modern Era of a Island Society Mindset-Dominica.
Still trying to figure out when that momentum took place
High prices of food and supplies are NOT down to DLP. It’s the greedy importers.
Look, let us say a bag of rice cost $10 EC in the US, then with transport it is now $12. OK? Now add tax … 40% and VAT 15% … now it is 20 EC (rounded up). OK?
NOW why is it being sold here for $50 EC Papa?
Ask those importers. GREEDY ppl killing our country. Who are they? Freedom and UWP and DLP all together.
Forget politics … the mothers should all march on those supermarkets and demand lower prices.
That is so right, you should say that again! is greedy they greedy.
Greedy importers? Maybe, but you forget Dexia, a semi-govt. enterprise, which has the sole right to import rice (and sugar) into Dominica. Normal, commercial importers can only bring in small units of pre-packaged rice and sugar, at exorbitant cost. We must question why tyhe Govt has to put such constrictions and taxes on the importation of basic foodstuffs (flour is another one) that we do not produce ourselves, at the expense of the consumer.
Dexia? Whay are they only bringing in white (useless for nutrition) rice? Every day i see those fat children waiting for years of diabetes and the suchlike. Disgusts me.
However, you seen those free bags if rice that arrive in Possie for help the aged? They from Canada and us.
Then see those greedy shopowners taking it fon almost nothing and selling it for more than New York?
That is greed not politics.
Ah yes foour also. White flour also useless.
If it is white and it aint a toursit … Keep away from it.
Dominica needs to get back to the Better Days Period
Sadly the main factor is that Dominica LACKS A GOOD Prime Minister who can see the Bigger Picture and Not get excited with paving a road here and there then going on the air saying haha when things are bad in the world look we doing a roads haha
The issue is that this Regime does not deal in Truth so they will always have a crippled economy Period.
What’s the track record prior to being Prime Minister has this dude got..haha Zero..
If this dude was smart please come off your High Horse and deal with facts….
IMF, so the next trip in, the Official Head Stone Proudly will be Placed on the Dominican Economy!
Whichever way you see it. ANY country doing good while the US and UK and all them are going down … you have to say well done.
Nothing to do with politics … it’s a good race and them winnin’. You have to applaud even if your team not the ones winning. Don’t be bad sportsmen.
Forget about sports. That is mind control.
I thought i was the only one feeling the sluggishness of the economy.Two main parts of the economy needs urgent attention.Im talking about the agriculture and tourism industry.In a little while,the country wont have anything to export or no tourist to visit,but before that i have the feeling that many of our small businesses would be shut.Something needs to be done NOW NOW.
Yeah a two gran a month salary back then was big man now you just have to pay the bus fare and it done. last Friday i bought a yoghurt for $3.50 yesterday it was $4.36. By the who’s paying the air fare and accommodation of those IMF people to be here minding our business? Just asking.
That is my point though. The prices are not political. They are GREED led.
Who made that yoghurt cost more? The importers/supermarkets.
Of course it is losing momentum as you do not get the real picture when you assess an economy based on AID money and Government spending. If they were to have based their report on private sector, the picture would have been catastrophic.
A country requires a thriving private sector to prosper. Look what happened to the USA when they started shipping all investment overseas. Now Obama has to provide incentives for investors to invest their money in the USA otherwise they done!
It’s basic economics and you don’t have to be a rocket scientist but then you cannot be a retard either and thats exactly what we have.
Just because you can steal dont mean you can make.
So here we are for the past 12 years with nothing whatsoever being done to increase foreign revenue earnings with all attention on AID money. Here we are where country has been propped up by AID and drugs so it must come crashing.
And its not that we have no faith in the financial sector! Its that we have ZERO FAITH IN SKERRIT and that pappy show of a government!!!!!!!!!!!!!!!!!!!!!!!
Who in their right mind is going to take loans take that risk to lose everything with a bunch of ….. running the country? Austrie? George? Blackmore? Charles? Walters? lolololol must be mad.
IMF needs to take a hike or start calling it as it is.
I support you on that…Let Hector John run things. This man is a genious and I have 100% faith he is the best man in the Caribbean now
hector john?? are u crazy?? please do a background check on Hector John. HE came from the US talking like he knows it all, he doesnt!!!!
what a silly comment
The IMF is a politician they keep putting spin on things. The last reprt stated that the Dominican economy was sluggish and now it is loosing momentum. Bondiuer from Sluggish to loosing momentum sound like euphemism for ” Dead and insignificant”.
But then the average Joe will just need to walk the street of Roseau or Portmouth to understand the stae of the Domincan economy. Who needs the IMF. No amount of spin, lies and cake decorating is going to make the economic cake taste any better. What this country need is honesty in government. A government willing to come clean an lay the cards on the table. Enough of this smoke screen and false declarations.
I wonder what the IMF would tell us about what is going on in their headquarters based country????
Its funny to see when the IMF reports give positive news…they are described as being the best thing since slice bread (re, credibility, etc)…but as and when it becomes more difficult for them to color up the glaring economic crisis, some folks start burning the messengers. It would be great if we had a more politically mature public that would think country over party. The economy is in crisis…the quicker we recognize that fact and put in place policies to address the slide the better off we will be. The mirror may show you one more clown if you take time to look.
money thats going on in .
The government must get more people to work. There are too many lazy brats sitting on their extreme end and not making a positive contribution towards the development of the country when they have the strength to do so.
Don’t sugar coat anything IMF, Dominica’s present Economy is Completed Dead!
Just move around the island and you will see the Cry Of Massive Poverty on the island..
The Agriculture Sector is Dead and Buried.
Cost of Good and Services are way too High.
And this Regime is not clever to realise they need To Grow the economy and stop looking at catching a Vote and the Red Clinic affair..
Dominicans are as usual not smart and thinking Society as they would know that the Red Clinic is Actually bringing down the island more…
That’s a sign of a island that’s is in the stone Age alot of Beggars….lol lol
So what would a Investor think of bringing into a Island where the Regime is Feeding cash at the Prime Minister Office ever Wednesday, to it’s Citizens….haha
Haha it’s a true reflection of the small minded Nature of Dominicans…That’s why they will Continue the be the Poorest and Unattractive Island as the do..haha
We have been feeling it on the ground; and if something is not dome Right-A-Way we may reach a point when things start spiraling out of control. This Labor party needs to leave office and let a competent people run the affairs of the country. In other words, he IMF is saying that Dominica is worse off now than it has ever been; and you know we have not been too good to begin with. There is too much begging and borrowing. There is nothing in place to stimulate the economy… Not even a plan. Those guys just ‘leaving’ Dominica to die. And when it dies they will take their riches and move to another country. Just like baby Doc of Haiti did – He killed Haiti and took his riches to France after Haiti died.
boiiii i hear skerrit saying economy doin well…..way papa I doh even wa see what going to happen to me n de country when tings not going well according to Skerro…so if de country he say was doing so well and I broke like FOX…much less for when he say de country not doing well…i wudda have to be nyhaming peice of my skin every day to survive man?
boiiii lemme get out fas papa..i doh become no human eating CANIBAL
CORRECTION: PIECE
The IMF needs to stop messing with Countries, UN take a hike.
Im sure they will if countries stop ask em money
Anon, are you serious in suggesting that the U.N. should take a hike. On financial grounds alone we should cherish that institution, which enables us to sell our vote to the highest bidders and so generate considerable amounts of direct- and indirect aid and yes, much needed ready cash. Why do you think the likes of Morocco and Azerbaijan have become our benficiaries? Out of love for Dominica? I am not debating moral issues here, which is another chapter altoghether
anon is and idiot from portsmouth
Amen
Langsal
what you mean by stating anon is from Portsmouth. We are not stupid in Portsmouth. However, the place is just highly contaminated with red eyes which majority of the time affects how we think.
Ya you can feel it! Very accurate summary of the economy. BAGAI WED!