IMF predicts economic growth for Dominica at 4.5%, inflation to decline to 2% in 2024: PM Skerrit

The IMF has predicted economic growth for Dominica at an average of 4.5% during 2024-2025, announced Prime Minister Dr Roosevelt Skerrit.

IMF predicts economic growth for Dominica at 4.5%, inflation to decline to 2% in 2024: PM Skerrit
IMF predicts economic growth for Dominica at 4.5%, inflation to decline to 2% in 2024: PM Skerrit

Roseau, Dominica: The IMF has predicted economic growth for Dominica at an average of 4.5% during 2024-2025, announced Prime Minister Dr Roosevelt Skerrit. Speaking at a press conference, he cited the report on the nation’s economy and said that the advancements in several sectors attributed to the growth.

In addition to that, the IMF also forecasted that the inflation in Dominica is projected to decline to as much as 2% in 2024/2025. On this front, PM Skerrit said that this is a positive recovery which is supported by the surge in stayover tourism, expansion in agriculture, and advancements in infrastructure projects.

He added, ”The most hopeful section of the IMF report said that inflation from its 2022 peak of 9.7% to 2.3% at the end of 2023. I know that the concerns are raised about the prices of goods and products, but the numbers are quite relieving for us.”

Highlighting the reasons behind the positive growth, the Prime Minister noted that the growth is facilitated by the nation’s shift to geothermal energy production and the progress of major infrastructure projects, including international airport and hotel expansions.

He mentioned that the IMF appreciated the government of Dominica for the steps taken in the past years to decrease spending and said that the decline in the public wage bill also contributed to the growth.

The report of the IMF also pointed to the challenges of Dominica with regard to the elevated public debt, and constrained fiscal space, and predicted that debt is set to decline in the coming years based on the continuous efforts of the government.

“The IMF commended the government of Dominica for their efforts to decrease spending, citing a decline in the public wage bill, ”said the prime minister.

Referring to the report “good” for Dominica, PM Skerrit asserted, ”The country despite several shocks to the economy since 2015 has been making strides toward real sustainable and resilient growth.”

In addition to that, the IMF also proposed some ambitious measures to protect the country against disaster risks and broaden the revenue base including the implementation of investment projects with high economic returns.

PM Skerrit counted those projects and said that the report of IMF outlined the positive outcome of the steps such as the international airport, geothermal, the hotels, the extension of the Douglas Charles Report, and the Cable Car for the economic recovery.

International Airport Project

Talking about the IMF report, Prime Minister Skerrit listed the benefits of the international airport and said that significant numbers of Dominicans are currently engaged in the construction of the project.

He said, ”The project will transform the island’s economic landscape, providing direct employment opportunities for skilled citizens as well as indirect options for farmers, fishermen, taxi operators, vendors, hoteliers, and other services.”

Touching on the extension of Douglas Charles Airport, PM Skerrit outlined that Dominica will soon commission the expansion to attract a large of visitors.

Geothermal Project

Highlighting the growth of the Geothermal Project, PM Skerrit added that the government has been heavily investing in the project to reduce electricity costs. During the parliament session next month, the government is set to get approval for a loan of $103M from the World Bank to construct the transmission system.

He said, ”The project is the cornerstone for reducing electricity costs and fostering sustainable growth.”

Housing Sector

Prime Minister Skerrit announced that the government is set to hand over around 250 homes to deserving families by the end of 2024. The houses are constructed with the funds of the Citizenship by Investment Programme.

He also talked about the 45 homes that were given to the families on Monday under the Housing Recovery Project.

PM Skerrit also talked about the regional connectivity and the operation of the LIA which is the major airline serving the Caribbean. He said,” Dominica is committed to enhancing air travel within the region and acknowledged the need for a collaborative approach to address the resultant challenges.”