Weak demand, banana crop hold back Dominica’s economic recovery – IMF

Roseau, the capital of Dominica

While Dominica’s authorities’ public investment has helped the country withstand a challenging economic environment, weak demand and the outbreak of the Black Sigatoka banana disease will “continue to hold back” a recovery, according to the International Monetary Fund.

The IMF recently concluded a mission to Dominica led by Aliona Cebotari for the 2012 Article IV consultation on economic developments and macroeconomic policies in the country.

The fund said growth would remain “subdued” this year, gradually increasing to around 2 percent over the medium term.

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28 Comments

  1. Anonymous
    September 10, 2012

    WOY WOY WOY

    • yea
      November 18, 2013

      someting happening

  2. huh?
    September 10, 2012

    the question the government should be asking themselves is , how is money coming into the country? day by day agriculture and tourism sectors are dropping, these were the main sources of money coming into the country.
    and they wanna use that lil disease to predict such smh.disease or not the banana industry sucks right now. In my opinion i dont think the government is going the right direction.in dominica there is no signs for develop only politics games, the thing that not making sense is why does the government boast when the doing certain things and is a loan they are taking?putting us in debt, and ppl are saying the government doing this and doing that.what have this administration done since in power that has contributed to our economy? nothing, rich getting richer and poor stays poor and the middle class getting poor.i cant wait to vote this government out of office

  3. I Know better
    September 10, 2012

    Banana is not just agriculture but part of the umbrella of elements that makes up agriculture.

  4. laparowl
    September 10, 2012

    even the IMF confirming that bananas is a vital contributor to the economy of dominica

  5. MKG
    September 9, 2012

    What XS Groove said? We talk already??

    Me self finish talk long time….well…sort of…lol

  6. "O" STRESS!
    September 9, 2012

    What else is New? I kept telling them the same thing till I got blue in the face. Help! Help! Help! “SOC”

  7. B-political
    September 9, 2012

    if the IMF had done like certain people, and give dominica an “F”, we would take that and run with it, not even BOLT or BLAKE would catch us… the experts have done there work and given there results, so i believe we all should stand by it

  8. anonymous2
    September 9, 2012

    The banana industry here had been down and out for years. Everybody knows that. Nobody wants to farm anymore. Everyone wants to do technology. Most of those jobs aren’t going to be on DA. But they are shipping them to other 3rd world countries.

  9. counselor
    September 8, 2012

    I think that establishing a credit system is a good initiative. Here are some ideas that the government can implement in the country.
    1. They should build a parking garage in Roseau.They can use this garage to generate income.
    2. They can install parking meters throughout the city.
    3. They can build an impound center.
    4. They should provide state ID cards.
    5. They can install speeding cameras.
    6. They can build a water world where people will come and spend time enjoying rides, pools etc.Members will have to pay an annual fee, and a registration fee to join.
    7. They can made provisions easier so that more people can go into business for themselves.
    8. They can bottle water and export to the united States and other countries. All these ventures will generate new revenue for the country.

  10. HAMMER MOUT
    September 8, 2012

    HA HA HAAAAAAAAA……… WHAT A LAUGH. DEY FOR REAL. BLOODY JOKERS

  11. same person
    September 8, 2012

    lets just say that dominica is blessed with sunlight, water and good loamy soil, yet we chase after investments that are fragile and far fetched.
    eg instead we put wind farms,solar farms and hydro turbines we go mining for geothermal so we can sell electricity for a more economically stable french island… its about two years now and no electricity to help this over taxed dead beat island…….and that same french island is installing wind farms and solar farms….

    WE SURE HAVE OUR PRIORITIES MIXED UP

  12. childfoot
    September 8, 2012

    Well what did you expect? Crime is rising,cost of living is rising, frustration levels rising,poverty level rising and I can go on and on. This government is bankrupt of ideas to stimulate the economy. Their priorities are to get rich, help their friends and let the others beg. Dont think they dont enjoy the plebs running to the red clinic. Even a blind man can see that these guys are taking Dominica to the cleaners.

  13. Disappointing
    September 8, 2012

    Dismal economic report. This economy is under siege. We need better leadership with better ideas to move us out of this slump. And Gov’t, free up the private sector and get out of people’s private affairs. Provide opportunities for people to take care of themselves.

    • ROSEAU VALLEY
      September 8, 2012

      Well, in my view it is not a dismal economic report, albeit our economic reality is dismal.

      As you may note the report is silent on several of the issues impacting negatively on Dominic’as economic situation and it only makes vague references to others.

      Whereas the economy is indeed under siege, one would not get that from the IMF report. The report would suggest that we have good stewardship of the economy and government’s policies are working.

      The report puts in focus the recent statements by Mr. Skerrit that the VAT will not be removed and the need for government to reduce discretionary public sector spending while confirming that government must adjust its efforts to increase revenues through streamlining of current spending and broadening of the tax base. In other words, without improvements in the productive sector, government must find more ways to tax Dominicans more.

    • MewMew
      September 9, 2012

      It’s so easy to talk about what should be done. Once people get into government, they discover that it is not as easy to do after all.

  14. benaravin
    September 8, 2012

    What is new? bring back agriculture has been the song of the opposition from 2000 till now. the mentality of the current government is still that of the slave…. “the white man is always correct” the ideas and plans of our own people is never listened to… instead they make Dominicans see the members of the UWP as the country’s enemy..oh lord help Dominica..

    • ROSEAU VALLEY
      September 8, 2012

      Indeed, I am glad that you noted that silence of the report on the decline in our agricultural, tourism and construction sectors. There nothing is new in this IMF report. It is the same old recycled statement with a change of words here and there. In fact, the report blames our problem in agriculture on the recent challenges of the Black Segatoka disease as if before that we were doing so well with banana production and exports.

      To understand the coded message of the IMF, one may wish to read the recent statement of the Fund on Antigua and Barbuda in August 2012 and its report on St Kitts in June 2012 in which its clearly stated a sharp contraction in the country’s economic activity, deterioration in its fiscal position, and a significant increase in public debt levels.

      Again, the report is silent on our stewardship and as you so correctly observed stated, the government will redirect our attention to the UWP as the enemy. But don’t be fooled, Even the IMF has noted that our government lacks policy direction in getting us out of this economic malaise.

  15. Mets
    September 8, 2012

    The IMF is saying what the Farmers on Q have been telling us for many years now. So why do we have to wait for foreigners to come and tell us what we already know!!
    This Gov’t is too foolishly proud to take advise from our own farmers who have their hands in the soil everyday.
    DLP and Nassief kill the Agriculture industry . my people get this short sighted Gov’t out of office.

    • ROSEAU VALLEY
      September 8, 2012

      Mets,I do not know if you are a baseball fan but I will support the METS over the Yankees anytime.

      Please allow me to echo yourconcluding thought.. “my people get this short sighted Gov’t out of office”

  16. Anonymous
    September 8, 2012

    What a joke! public investment in what, with what impact on the economy? I dispair for Dominicans because this government has taken us to a place where everyone in the world thinks that Dominicans are the most foolish people.

    • September 8, 2012

      amen to that

    • ROSEAU VALLEY
      September 8, 2012

      You are so right. What public investment is the IMF referring to? The building of the State Palace, the resurfacing off roads, the construction of the State College by Chinese with none of that money circulating in a drowning economy of high youth unemployment?

      The IMF itself has confirmed the weak demand in the economy acknowledging that people are out of work and broke. Money is not circulating, retail sales are low and both personal and national debts are on an all time high as the money from all the capital expenditures do not trickle down to the average Dominican.

      In light of government’s intention to build, own and operate hotels to compete with the private sector, the IMF has warned that “Without monetary or fiscal policy room to support our economic recovery, government’s policies must focus on engaging the private sector through structural reforms that would boost competitiveness and productivity, and improve the country’s long-term growth prospects.

  17. jah guide
    September 7, 2012

    2% growth my foot must be among one set of people in the country.

    • ROSEAU VALLEY
      September 8, 2012

      Considering the current global economic challenges that all economies must grapple with including the more advanced economies, any % in growth would welcomed under normal circumstances. Having said this, you are right the ordinary people have not and will not experience this growth that the IMF speaks of because nothing is filtering through to the ordinary man on the street. Yes, there is investment in capital projects but Dominicans are unemployed.

      The IMF has also confirmed that government must focus on adjusting its efforts aimed at streamlining current spending and broadening of the tax base, which will result in an increase in the cost of living through either sustained or increase VAT, increase in non-tax revenues such as licenses and fees etc. We saw that in the recent 2012/2013 budget.

      It is also noted that the IMF has also called for “preserving our productive infrastructure” without mentioning that Dominica does not have a productive sector to preserved. It also calls for preservation of our “social spending” programs (like the Red Clinic), while at the same time it calls for “improvement the quality of public expenditure.”

      We must thank the IMF for its recycled statement, which is reality devoid of substance and does not reflect our reality.

  18. Feelin' It
    September 7, 2012

    i am not surprised with the many challenges that dominica’s economy is faced with… hope that this country and it’s people will continue to be resilient… we have to do everything within our power to safeguard our agricultutral sector… i pray we continue to work SMART to make the country’s economy resilient and competitive…

    • same person
      September 8, 2012

      its one thing to recite a pray but is another to pray from the heart…only one will get answered, the one from the heart.
      but i think its the government policies that needs to change, they are only doing things to seek re-election

    • ROSEAU VALLEY
      September 8, 2012

      Excellent contribution. Like you, many of us are feelin it, many of us are not surprised with the many economic, political, legal, social and other challenges confronting us.

      Like you, many of us hope that Dominicans will remain resilient as we recognize the need to invest in our people, support what is local and develop our agricultural sector.

      Like you, many of us pray that we can START ONCE AGAIN (not continue to as we are not doing so currently) to work SMART to create employment for our people, be wise in prioritizing the type of capital projects that we undertake considering our limited resources and humble ourselves in ensuring good , transparent and accountable governance, respect for our constitution and the rule of law.

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