Dominica: 2023 Article IV Consultation-Press Release; and Staff Report for Dominica

The economy is recovering gradually but faces headwinds from the cost-of-living crisis, more limited policy space, and more frequent and costly climate shocks. Tourism rebounded in the second half of last year, but scarring effects from the pandemic, on the heels of large natural disasters, could prove significant considering lengthy school closures, the deep GDP contraction and associated erosion of fiscal space. Dominica’s climate adaptation and modernization agenda is driving growth, with priority being given to construction of a geothermal energy plant and a new international airport.