The International Monetary Fund (IMF) says while Dominica has managed the recent economic crisis well, its recovery has been lacklustre and growth prospects “remain weak”, and hinted it was “standing ready” to get more involved in the country’s balance of payments if needed.
In a statement released after wrapping its latest round of talks, the international financial institution said the fiscal stimulus during the crisis helped the country avoid a deep recession.
But it said “tepid demand” in developed countries, Dominica’s main tourist source, weak competitiveness and lack of clear growth drivers have led to a slow recovery that will “constrain future growth.
IMF right 100% investors wont come to any country to set up a business if thay have a high levle of unemployment, high taxes cost for energy & telecomuncations services very expensive & so on, plus the country is not showing any local economical business am not talking about talk am talking about real Business our professionals dont get jobs thay go elswere thats another problem for us investers look at those things to also new on the list security problems crime & robbery, people we have a lot of work to do we have to start now.
August 9, 2011 Your comment is awaiting moderation.
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Hahahaha! very funny, to that I say Dominicans abroad stop saving your money in Dominica for rainy days because when it is raining and you want your money back. They will tax it.. Keep your money where you are. Skerrit already buy all, sell all you to Chinese and Venezula and all duh know who all you belong to right now!
OH YEAH! WE HAVE BEEN BETRAYED TO THE CHINESE
domnik pwi!!!
I thought that the PM recently said that the Economy was doing good. Looks like we are sending too much money over to the US, UK, Canada, etc.
Mr. PM, please stop dominicans from exporting all the countries cash. Tax it harder
Hahahaha! very funny, to that I say Dominicans abroad stop saving your money in Dominica for rainy days because when it is raining and you want your money back. They will tax it.. Keep your money where you are. Skerrit already buy all, sell all you to Chinese and Venezula and all duh know who all you belong to right now!
very interesting analysis by the IMF. It is sending a warning message to the Government: tie your waist; if you fail to do so, you will have another fiscal crisis on your hand. Before you do, come back to us, let us help you tighten your fiscal belt to suit your size (of economy).
Conflicting investments prevent synergy which is needed for growth.
How can the government encourage locals to invest $millions in tourism then turn around and directly sabotage their investment and then expect growth?
Would any tourist spend their hard earned $ to visit a theme park/ “Nature Island” and expect to see a mountain being torn down, forest being ripped off the mountain face, wake up in one of the many local hotels and guest houses to see tugs and Barges lining up and silt poring into the solomon reef and drifing towards the marine reserve.
colas plant belching toxic fumes opposite a wacky rollers and excavators digging up the river they are tubing on?
Excavators illegally mining the pagua river tubing area and entrance to the Carib territory.
Having to drive through the Gaza strip (where the ‘OLDEST YOUNG MEN’ ‘OLDEST NEW TOWN’… to get to their accomodation.
Admin. allow me the possibility to repost my comment with a few modification here.
The first thing we most know about an article Iv mission is that as long as the country is not under an IMF program , the report will never be independent(or the language would be structured in a way that only people with an economic background will understand whats really going on ).
When countries are not under a program the report is sent to the Ministry of finance ( minister) who will remove anything he does not like before giving the fund the right to publish.
having said that ,i will now turn to the report.
Both the IMf and the Ministry of finance ( primary deficit 0.6 inFY11)is anticipating a primary deficit for fiscal year 2011.
A primary deficit has two serious implication to the fiscal position of the country . (1) this implies that either debt will increase or we will default on debt service payment.adding intrest on debt service arreas means that debt will eevntually rise.
(2)It simply means that no funds is available for debt amortization – which again implies that dominica will be accumulating principle arrears.
This brings me to a very important question. Why the hell is no one seems be be concerned with the overall balance . Under the current fiscal stance the overal balnce is negative meaning no funds is available to close the fiscal gap .
This is why my people the imf in its last paragraph is calling for dominica to engage into a next program.
This makes Mr.Prevost look like a KING in his report on the budget when he indicates that we heading straight back to IMf.
The report also indicates the commitment of the government to a primary surplus of 2.4% of GDP. My people the only way this will be achieve is through more austerity measures. Under this economic climate can we in dominica absorb more austerity measures.
The next question is to ask what are the macro economic impact of the government fiscal policy stance.
1) slower growth as indicated by the article above
2) increase unemployment and poverty predicted
3) taxes will be increase ( if not both principle and interest areears will surge)
4) Norminal wages will remain stagnant causing a fall in real wages ( as inflation is expected to rise)and hence increase in cost of living and decline in standard of living .
5) reduction in the social safety nets ( governement might default on paying over the statutory deduction )
6) increase current account deficit
7) a surge in public debt . note debt is now on an upward trajectory.
government floating debt will increase which may serious affect local companies who are filled with government LPOs.
Dominica is still ahead among the OECS states.
which OECS Country is Dominica ahead of? Montserrat? you are right. Grenada? Saint Vincent and the Grenadines? St. Lucia, Antigua and Barbuda, Saint Kitts and Nevis, British Virgin Islands, Anguilla (where teachers are paid $90,000.00 plus annually for the salaries)? you are wrong. Get ur facts straight… we only ahead of Montserrat by default because of their current volcanic activity…otherwise we would be last (kakarat)
In Short Ted Lewis has no idea what he is saying and is quoting Norris Prevost for having smarts.
The redaers digest version of the IMF Statement is “But while Dominica does not face an immediate financing need, the island faced shrinking room to manoeuvre around economic and natural disaster shocks and a need for policy correction suggesting a role for the Fund, the IMF said.”
This is the true for every small island state…please name one island in the OECS and even Caricom that can stand the shock of Natural and Economic Disaster?
The IMF having been in Dominca from 2002 and also Jamaica from 19 (how many),why can’t these economist suggest a way forward?
What are the plans the IMF gave to Antigua?
Having said that, some of the suggestions by the IMF are broad and vague and DA should take these suggestions and customize it to US.
WE CAN DO IT
WENNER IF YOU NOT TRAIN IN THE FIELD RESEARCH FIRST BEFORE CASTING JUDGEMENT. YOUR LACK OF KNOWLEDGE IN FINANCIAL PROGRAMING AND THE UNDERSTANDING OF PRIMARY BALANCE AND OVERALL BALACNE CALCULATION MAKE U UNABLE TO UNDERSTAND THE ARTICLE BUT RATHER STAND READY TO REGORGITATE WHAT IS Said .
Note, the primary balance is calculated as total revenue and grants minus total expenditure and net lending less intrest exp .
its clear that this balance is calculated before the debt obligation for the country.
if this balance is in deficit( indicated by the article) it simply means that ( other things being equall) we have to borrow to finance the deficit .
second if we add debt service ( interest )obligation to the primary balance its means that the gap above the line is wider into a deficit . in short we could either borrow or default on these payment either way when u factor interest on arrears the total debt stock will increase.
Remember our above the line balance is in negative.
this implies that we need a surplus of equall amount below the line ( what we called positive financing).
in other words we need to finance the above the line deficit plus the amortization of the debt ( principle repayment which is dealt below the line).
what are the option here.
With little or no identified financing given in current budget , it means that under current polices the overall balance delow the line is negative .
if there exist a negative below and above the line it means that there exist a fiscal gap or fiancing gap that needs closing.
some option that will be carried out is borrowing ( positive change in net domestic credit) , increase floating debt ( unpaind vouvhers or lpos) and increase in principal arrears which aagin will attract some penalty or increase and hence a further increase in the magnitude of the central government debt and aslo the government could negotiate for debt writeoff and rescheduling).
looking at the current environment one must ask themselve how much funds can we borrow domestic ,from the central bank , externally
or how much of unpaid vouvhers can the local companies aborb from the government or how much debt write off and rescheduling can take place considering dominica has already benefited from the paris club during the IMF program.
Now mrs.wenner , when the above option are exhausted countries revert to the lender of last resort and do you know who that it . ITS Mainly FIscal ( The IMF).
so Wenner i am not following mr.prevost because my 10 years of working in the field as a snr. economist and working directly with the IMf give me the ability to form my own judgement.
note also its not a matter of which other country going to the imf . I am saying , if you currently live in dominica ,can you or do you think the country can undertake more usterity measures anytime soon. Food for thought
I am awaiting your reply and hope you don’t pretent not to have read my reply.
Ted, with all your accounting/finance training and ‘big job’ in Antigua’s ministry of Finance, why didn’t you advise your government accordingly to have stopped the ugly hand of the IMF from pounding down on a once vibrant Antiguan econmy?
Man clean your backyard first, before trying to criticize others!! Bloody hypocrite!!!!
THE TRUTH HURTS…IS IT HURTING YOU THAT TED LEWIS SPOKE THE TRUTH???
Hey
Since you know me so well you should know that i was born in lagoon portsmouth dominica. Graduated from the Portsmouth Secondary School.
so Mr or Miss , Where the hell is my BackYard.
i thank the the governments( yep i received shcolarship from both government)of Antigua and Barbuda for their assitance toward my personal development. i have been making my contribution as a civil servant and part time lecturer for the last 10 years with the best of my abilities.
My family Economic situation , and lack of jobs in dominica caused my familly and i to migrate in the early 9o’s . i have always loved my country as indicated by my involvement with Portsmouth Awarness Committe( PAC) , always taking part in other communitty events, football yes at 15 i had my own football team sponsored by mango restaurant ( shaboo a product of that team have represented dominica get football shcolarship and now holds a degree).Was involve in portsmouth athletic club , played cricket , carry blocks ( two block in my hand at age 9) from by chambo to government school ( now RDPS) when we was building the court at the shcool, always clean the drain from by me to the sea, always present during community day of service, used cutlass to cut the PSS park onseverall ocasion etc
All this was before i migrated at age 16. i have always been involve. During the freedom days i used to ride with the man himself mr.Carbon to all conventions , meeting and mortocades.
since i started my working life in 2000 , i have never been home less than 3 times a year.
my brother/sister the reason i used my right name is because it allows me to be responsible when i ever i come on DNO and not to make stupid comments like yours .
lets debate the issues like mature people. if you can’t then u don’t really have to comment. U can just tick for ticking sake, or party sake cause thats seems to be the modus operandi here.