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<\/strong><\/p>\nDisclaimer: <\/strong>The views expressed in this statement do not necessarily reflect the views of Duravision Inc, Dominica News Online, or any of its subsidiary brands.<\/strong><\/em><\/p>\n The Dominica Freedom Party (DFP) is raising the alarm following the release of the International Monetary Fund\u2019s (IMF) latest Article IV Consultation Report, which reveals that Dominica\u2019s public debt remains critically high at approximately 100% of GDP\u2014a level that endangers the country\u2019s financial stability, future development, and national independence.<\/p>\n The DFP finds it deeply troubling that, amid headlines proclaiming a \u201cpositive outlook,\u201d the IMF is in fact warning of a high risk of debt distress, and has recommended urgent fiscal consolidation to avoid a future economic crisis. A Dangerous Fiscal Trajectory<\/p>\n A debt-to-GDP ratio of 100% means that Dominica owes as much as it produces in a year. This is not sustainable. The Eastern Caribbean Currency Union (ECCU) benchmark for safe debt levels is 60%\u2014meaning Dominica is well above the red line.<\/p>\n This debt burden was initially driven by the pandemic and natural disasters, but now persists due to excessive borrowing, a narrow tax base, and overdependence on volatile Citizenship-by-Investment (CBI) revenues.<\/p>\n If unaddressed, this could lead to:<\/p>\n \u2022 Skyrocketing interest payments that crowd out health, education, and social programs; PEOPLE BEFORE POWER*PEOPLE BEFORE POLITICS*PEOPLE BEFORE PRIVILEDGE AND THINGS<\/p>\n \u2022 Dependency on risky short-term financing or foreign bailouts; A Call for Good Governance and National Unity<\/p>\n The Dominica Freedom Party calls on the Government of Dominica to:<\/p>\n 1. Be transparent about the country\u2019s true fiscal position. The Dominica Freedom Party urges all Dominicans to reflect on the path ahead\u2014and to demand leadership that confronts reality, not hides from it.<\/p>\n Let us not sleepwalk into economic collapse. Let us act now.<\/p>\n","protected":false},"excerpt":{"rendered":" Disclaimer: The views expressed in this statement do not necessarily reflect the views of Duravision Inc, Dominica News Online, or any of its subsidiary brands. The Dominica Freedom Party (DFP) is raising the alarm following the release of the…","protected":false},"author":13,"featured_media":343568,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_cbd_carousel_blocks":"[]","footnotes":""},"categories":[36,235,9],"tags":[],"class_list":["post-343565","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy-development","category-homepage-carousel","category-news"],"acf":[],"yoast_head":"\n
\n\u201cPublic debt, although declining from its pandemic peak, remains elevated at 100% of GDP,\u201d the IMF report states.
\n\u201cMore ambitious fiscal consolidation is needed.\u201d<\/p>\n
\n\u2022 Limited capacity to respond to economic or climate-related shocks;<\/p>\n
\n\u2022 A potential future of austerity and economic stagnation.<\/p>\n
\n2. Broaden and stabilize revenue sources, moving beyond dependency on CBI.
\n3. Rationalize government spending, with a focus on long-term sustainability.
\n4. Engage the Opposition and civil society in crafting a national recovery and debt reduction plan.<\/p>\n