IMF projects growth for Dominica

An International Monetary Fund (IMF) mission, which visited Dominica from May 17–27, 2011, believes that there is potential for slow but consistent growth in the medium term with sustained growth in the long-term for Dominica.

Aliona Cebotari of the IMF’s Western Hemisphere Department led the delegation, as they met with Prime Minister and Minister of Finance Roosevelt Skerritt, Financial Secretary Rosamund Edwards, other senior government officials and representatives of the private sector and labor unions.

Cebotari, in a press release, projected that the country’s economy will experience growth despite rising world commodity prices.

She said, “Dominica is emerging from the crisis, building on the timely and strong counter cyclical response over the past few years. Growth turned positive last year, but the recovery is expected to slow in 2011 to 0.8 percent, given tepid demand and the needed fiscal consolidation, and to gradually rise to 2 percent over the medium-term. Increasing world commodity prices are expected to put some pressures on inflation and the balance of payments in 2011, but these should be manageable and should subside in line with world fuel and food prices.”

Cebotari is determined that Dominica’s decreasing public debt is due to prudent fiscal management and there is need to continue the monitoring of financial stability and a proactive management of risks in the financial sector.

There is also work to be done, according to Cebotari, to ensure continued long term-growth.

“Boosting long-term growth will require concerted efforts to create an environment propitious for private sector investment by simplifying the investment approval process, improving land tenancy arrangements, and enacting the revised procurement legislation recently approved by the government, among others,” she stated.

Cebotari further added, “The IMF will maintain a close policy dialogue with the authorities as they continue to address these challenges. Upon its return to Washington DC, the mission will prepare a report to the IMF’s Executive Board, which is tentatively scheduled to consider it at end-July 2011.”

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14 Comments

  1. former employee
    June 7, 2011

    I am not permitted to comment as a former employee.lol!

  2. burt dave
    June 7, 2011

    Had the opportunity to have a side discussion with one of the officials who was very concerned of that the other Islands economy were showing progress while Dominica was so far behind. They are also in search of what it is that Government is doing to improve the economy in the short to medium future,nothing seems to hold a clear concrete sustainable path from this Government

  3. TRUTH
    June 7, 2011

    that is why we dominicans must love and respect ROOSEVELT SKERRITT he an his party take da from under water,where UWP left it jah bless DOMOINCA

  4. Anonymous
    June 7, 2011

    its a good report though

  5. Way Out There
    June 7, 2011

    It is correct to say that we import way more than we export. I believe Dominica’s economic model has to change completely inorder for the country to grow. There are exponential growth opportunies available without blowing up mountains.
    Dominica’s future should be mapped out with a “GREEN” theme as its center. Eveything else can fall under that:
    Indusrty: Recycling, Geothermal and Natural gas harvesting, better hydro plants, wind power exploration, Solar harvesting, wave power harvesting on the east coast.
    Agriculter: Processing of our large expanse of raw fruits and materials. Production of Biofuels, production of chocolate and cocoa, Bay leaf processing (believe the oil it is used in perfumes), water exportation, Canning of seafood, maybe even rice production
    Eco-Tourism: Will benefit directly from a marketing stand point, because we have approached our activites in a “GREEN” manner. An emphasis on our quality of living based on the number of living Dominicans who are over 100 years old. We could be the next Florida…a mecca for baby boomers who care more and more about living longer.
    These are just a few thoughts, but there is so much that can be done to improve. Also, there has to be a more serious approach to the crime problem.

  6. K-9 Unit
    June 7, 2011

    I smell another DLP take over of the DNO product. I maybe wrong but my instincts are begining to tell me that DNO maybe altering it’s course. Because DNO has been impartial over the last couple of years it is onlt fair to wait it out before making any strong accusations.

  7. Neutral
    June 7, 2011

    What about the IMF report capturing the grim and frightening truth about our development.” The lack of growth is rather institutional and that what is needed is a strengthening of the institution of the state and the capacity of governments.” Also noted is that our growth is highly dependent on ” the commitment of governments to reduce the debt overhang, the implementation of investments to improve productivity and competitiveness, and the continuation of policies, including the building of buffers that can reduce the impact of shocks to macroeconomic and financial stability.”The true question is – has this government demonstrated a commitment to achieve financial stability.
    Conventional wisdom has it that governments may lie strategically to the public about economic data which they collect and provide. Even the United States came under scrutiny of the market after GDP growth revisions were consistently negative in the crisis that started in 2008. Countries, at times, falsify economic data and do it strategically, when it suits their interest.

  8. following their masters like poodles
    June 7, 2011

    The country imported 1/2 billion and exported 90 million but our economy growing hmmmm. Oh i just remembered there is a term out there called “negative growth” in that aspect the IMF and Govt is right we doing great.

  9. Porssie Radical
    June 7, 2011

    As I read through the report I can’t help but to laugh out loud. Someone just ask me what am I laughing at. Note that the ImF officers spoke to Prime Minister and Minister of Finance Roosevelt Skerritt, Financial Secretary, other senior government officials and representatives of the private sector and labor unions. It is a fact that the IMF reports always reflect exactly what government administrations provide. That is so particularly among the poorer countries.
    Aren’t we familiar with the continuous line“Dominica is emerging from the crisis, building on the timely and strong counter cyclical response over the past few years”. Note that we have been hearing this for the last 10 years. The austerity measures implemented by Pierrro is the counter cyclical response that the DLP administration keep drumming. What exactly is the fiscal responsibility that the administration keep talking about. Lets see; the feeble dependence on a VAT base economy even after 11 years. Total dependence on charitable donations from Venezuela or a few Chinese? Are we to believe that an economy where the only revenue generated comes from the overtaxing of the civil servants is thriving? We are fully aware that the government is having a difficulties paying public servants on time. Does that ring a bell?
    Will the IMF report reflect the collapse of the agricultural sector , the steady decline in tourism due to little or no effort to sustain and develop our tourism sector? The IMF report will not reflect a lack of growth an a decline in manufacturing and export? Why would the IMF report indicate the above noted unless that is information is given to the IMF officers. The IMF is not like an enforcing agency who could issue an audit request with the requirement to provide all necessary information under oath.
    Still laughing my A***** off.

  10. we know so
    June 7, 2011

    we all know that we’ve got potential here in Dominica. We start by throwing some dynamites in those mountains in order to get space for development

    • -Rebel With A Cause-
      June 7, 2011

      Caution, our growth must also be sustainable meaning that provision must be made for preservation and regeneration of our natural resources. Our many many mountains play a significant role in maintaining our abundance of water and clean water is going to be the next big commodity on the world market in the not too distant future. Our water will also play a key role in our food security so we must measure these aspects carefully before we actually start blasting and flattening mountains.

  11. American Dominica
    June 7, 2011

    That pansy Scheme? Once IMF get their money that’s all they care about. They do not care about how the money is raised, or where it comes from.

    • Dominican American
      June 7, 2011

      Shirley if you were so proud to be Dominican why not call yourself Dominican American. The last time I checked the correct way would be ” dominican American”. You are Dominican by birth , you only became an American citizen sometime ago.

      • American Dominica
        June 7, 2011

        Whatever! You call yourself what you want to call yourself and PLEASE I BEG YOU AND EVERYBODY ELSE to allow me to say, or call myself I feel like calling myself, without your comments or interference. Speak to the IMF report. Shirley is not the subject. Par cumciea aprie mois encoure.. I call myself American because I enjoy my Freedom as an American! I say what I want, I am always at the White House and all other places within my reach protesting issues and Government officails and everyone KNOWS and RESPECTS my rights to do so! I will change my name again, just for you guys not to make me the issue of all issues again.

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