## 2. Balance of Payments Summary

## Source details

**Canonical URL:** [2. Balance of Payments Summary](https://www.imf.org/-/media/files/publications/cr/2022/english/1dmaea2022003.pdf)

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---

### Mission overview and institutional context
- A remote technical assistance (TA) mission on external sector statistics (ESS) was conducted to the Statistics Department of Dominica (SDD) during August 30 to September 10, 2021.
- Participants: Three ECCB staff and Fadhila Alfaraj (IMF STA).
- SDD and the Eastern Caribbean Central Bank (ECCB) jointly compile balance of payments (BOP) and international investment position (IIP) statistics for Dominica.
- Mission objectives:
  - Provide hands-on assistance on statistical techniques and source data to review preliminary 2019 and fill data gaps for 2020 BOP and IIP.
  - Address data collection issues and compilation techniques in the context of the COVID-19 pandemic.
- Data sources and response rates:
  - Primary reliance on administrative sources, including submissions to the ECCB and the Financial Services Unit (FSU).
  - 2020 ESS survey response rate: 38 percent; transaction-weighted response rate with administrative sources: 89 percent.
- Key institutional needs:
  - Strengthen private sector data collection and reinforce data-sharing agreements.
  - Publish available quarterly data on external transactions and positions on ECCB and SDD websites.
- Mission requested: publication of quarterly external transaction indicators and dissemination of 2020 BOP and IIP statistics.

### Priority recommendations and action plan highlights
- Dissemination and publication targets:
  - December 2021: Disseminate balance of payments and IIP statistics for 2020. — ECCB and the SDD
  - June 2022: Publish available quarterly BOP selected indicators on ECCB and SDD websites (goods imports, goods exports, visitor expenditure, external transactions of the government, external transactions of DTIs, remittances, and other available external transaction data). — ECCB and the SDD
- High-priority operational steps for SDD (selected):
  - By October–December 2021: Request information from Discover Dominica on tourism period dates; use departing visitor survey results for winter and summer periods; request quarantine cost data from Ministry of Finance and Discover Dominica; follow up with Ministry of Finance and Ministry of Health for vaccine and medical-supplies grants received in 2020 and include values in secondary income.
  - Ongoing: Follow up with CBI unit for Citizenship by Investment (CBI) direct investment related flows for 2019 and 2020; request CBI-related construction project information on short-term construction services purchased from nonresidents.
  - By May 2022 and ongoing: Use video conference facilities for meetings with respondents; review tax authority submissions for additional external transactions and positions data.
  - December 2022: Finalize provisional BOP time series compiled for the period prior to 2014 in BPM6 format.
  - June 2022: Separate hotel-visitor categories into long-stay and short-stay and re-estimate travel credits accordingly.

### Compilation context, COVID-19 impacts, and data sources
- COVID-19 impacts:
  - Pandemic measures reduced respondents’ time and limited face-to-face survey follow-ups; in-person meetings restricted.
  - 2020 visitor expenditure survey was cancelled; last survey was December 2019. Data indicate 85 percent of 2020 visitors arrived before ports closed in March 2020.
- Administrative and other sources used for 2019–20:
  - DTIs, insurance companies/agencies, MTOs, hotels (administrative); Customs Department (CD) for imports/exports; visitor arrival statistics and visitor expenditure submissions to ECCB; government ministries and FSU reports; published financial statements.
  - Most private-sector entities are small and generally do not conduct external transactions beyond goods (captured by CD) and visitor transactions (visitor expenditure survey).
- Compilation practices:
  - Work-files updated with respondent and administrative information; internal and historical consistency checks performed; opening 2020 IIP checked against closing 2019; estimates used where data gaps existed.
  - Guidelines on BPM6CG quality checks and methods to estimate for low response/coverage reviewed with compilers.

### Current account and aggregate BOP findings (key figures)
- Preliminary 2020 BOP estimates (Revised 2019 (A), Revised 2020 (B), Change (B-A)):
  - Current Account (EC$ million): -576.8  -401.9  174.9
  - Goods balance: -714.9  -458.6  256.3
  - Exports: 43.7  48.0  4.3
  - Imports: 758.6  506.6  -252.0
  - Services (net): 153.8  -44.8  -198.6
  - Primary Income (net): -22.7  23.5  46.1
  - Secondary Income (net): 7.1  78.1  71.0
  - Capital Account: 160.1  122.5  -37.6
  - Net Borrowing from the Current and Capital Account: -416.7  -279.4  137.3
  - Net Borrowing from the Financial Account: -605.5  -69.1  536.4
  - Direct Investment: -169.9  -60.3  109.5
  - Portfolio Investment: -15.1  18.2  33.3
  - Other Investments: -362.8  -53.5  309.3
  - Reserve Assets: -57.8  26.5  84.3
  - Net Errors and Omissions: -188.9  210.3

- Revision note:
  - Revised 2020 current account deficit is EC$26.9 million greater than the March 2021 published estimate of EC$375.0 million, mainly due to a higher deficit in services; deficits increased in all service sub-categories except government services.
  - New estimates for 2019: reduction of EC$24.0 million in the preliminary 2019 current account deficit and an increase of EC$6.5 million in the preliminary IIP deficit.

### Goods account details and data-quality issues
- Customs Department data indicate imports including insurance and freight for 2020 were EC$575.7 million.
- ECCB and SDD estimate freight cost at 10 percent of imports and insurance cost at 2 percent of imports; after deducting estimated insurance and freight, imports at FOB values were estimated at EC$506.6 million for 2020, a reduction of EC$252.0 million or 33 percent from 2019.
- Exports for 2020 estimated at EC$48.0 million, an increase of EC$4.3 million relative to 2019.
- Imports for 2019 were elevated by post–Hurricane Maria reconstruction; imports for 2020 align more with pre-2017 values (three-year period ending 2016 imports averaged EC$527.4 million).
- Freight and insurance estimation review:
  - Mission noted freight ratio appears low; shipping agent suggested a freight ratio of 15 percent might be more representative.
  - Recommendation to separate freight and insurance charges for fuel and non-fuel imports and to review/update estimation ratios.
- Missing data and adjustments:
  - Additional data on goods procured in ports required (Airport and Sea Port Authority); oil importers provided fuel sales to nonresidents but Airport/Seaport Authority data were not received.
  - Imports should be revised to include an estimate for the value of non-cash grants (vaccines and medical supplies) received in 2020; CD records volumes but not values. SDD should obtain values from Ministry of Finance and Ministry of Health and include them in goods debits and secondary income credits.

### Services account (detailed observations)
- Services balance declined by EC$198.6 million from a surplus of EC$153.8 million in 2019 to a deficit of EC$44.8 million in 2020.
- Services credits declined by EC$306.4 million.
  - Travel credits declined by EC$284.4 million (this sub-sector accounts for 93 percent of the decline in services credits).
- Net travel surplus for 2020: EC$64.1 million, a decline of 79 percent relative to EC$310.9 million in 2019.
  - Stop-over visitors declined by 76 percent in 2020.
  - Cruise passengers declined by 49 percent in 2020.
  - 85 percent of stop-over visitors and 100 percent of cruise passengers arrived in the first quarter of 2020.
- Government quarantine costs for nonresidents were absorbed by the state and should be included in travel services credits and secondary income debits.
- Visitor Expenditure Surveys for 2020 were cancelled; estimates used December 2019 survey averages for average daily expenditure and average length of stay.
- Recommended methodological improvements for travel:
  - Use winter-period survey averages for winter months and summer-period survey averages for summer months.
  - Separate hotel-holiday and hotel-business visitors into short-stay and long-stay categories and compute average length of stay and average daily expenditure for each category.
  - Revise travel credits to include updated summer/winter averages and cost to quarantine visitors.
- Services debits declined by EC$109.2 million.
  - Travel services debits declined by EC$37.5 million.
  - Transportation services debits declined by EC$46.2 million.
- Freight debits declined by EC$28.6 million.
  - Freight cost fell from EC$86.2 million in 2019 to EC$57.6 million in 2020 (freight charges estimated as 10 percent of imports).
  - Mission recommended reviewing the ratio used to estimate freight charges.

### Primary and secondary income developments
- Primary Income:
  - Primary income surplus for 2020: EC$23.5 million.
  - Change: increase by EC$46.1 million from a deficit of EC$22.7 million in 2019.
  - Total direct investment income debits declined by EC$49.0 million.
  - Reinvested earnings component declined by EC$75.5 million from EC$31.5 million in 2019 to negative EC$44.0 million in 2020.
  - Out-turn dominated by activities of one DTI; mission emphasized need to follow up with this DTI.
- Secondary Income:
  - Secondary income surplus for 2020: EC$78.1 million.
  - Increase of EC$71.0 million relative to a surplus of EC$7.1 million in 2019.
  - Net personal transfers increased by EC$66.3 million (accounts for 93 percent of the increase).
    - Personal transfers credits increased by EC$56.9 million to EC$176.1 million.
    - Personal transfers debits declined by EC$9.4 million to EC$59.4 million.
  - Estimates derived from submissions to the ECCB by DTIs and to the FSU by remittance companies; compilers should follow up to confirm.

### Capital account and net borrowing
- Capital account surplus declined by EC$37.6 million to EC$122.5 million in 2020, due primarily to reductions in capital transfers to general government.
- Net borrowing position from current and capital account for 2020: EC$279.4 million.
  - Current account deficit: EC$401.9 million.
  - Capital account surplus: EC$122.5 million.
- Financial account estimated net borrowing position: EC$69.1 million (from available data).

### Financial account and reserve movements (selected)
- Direct investment: net borrowing position of EC$60.3 million.
  - Direct investment liabilities: net borrowing position of EC$59.3 million (relative to net borrowing of EC$169.9 million for 2019).
- Portfolio investment: net lending position of EC$18.2 million (relative to net borrowing of EC$15.1 million for 2019).
  - Economy net acquired portfolio investment assets of EC$7.4 million (relative to net acquisition of EC$17.1 million in 2019).
  - Net portfolio liabilities declined by EC$10.8 million (relative to a net increase of EC$22.2 million in 2019).
- Other investment: net borrowing position of EC$53.5 million.
  - Net assets declined by EC$26.4 million (decline in loan assets of DTIs).
  - Net liabilities increased by EC$27.1 million.
    - Currency and deposits liabilities declined by EC$90.0 million.
    - Loan liabilities of the Government increased by EC$115.1 million.
- Reserve assets increased by EC$26.5 million in 2020 (improvement relative to a decline of EC$57.8 million in 2019).

### Net errors and omissions
- Net errors and omissions for 2020: EC$210.3 million (positive).
  - For 2019, errors and omissions: negative EC$188.9 million.
  - Published 2020 balance of payments showed errors and omissions of EC$78.9 million.
  - Main contributor to increase in errors and omissions: revised data of DTIs — other investment net acquisition of financial assets increased EC$260.7 million, offset by increase in net incurrence of liabilities EC$167.5 million.
- BPM6 paragraph 2.24 implications noted (sign convention as described in source).

### International Investment Position (IIP)
- Net liability position increased by EC$58.4 million from EC$542.3 million at end-2019 to EC$600.7 million at end-2020.
- Table 3 (EC$ millions) — Revised 2019 (A), Revised 2020 (B), Change (B-A):
  - Net Position: -542.3 -600.7 -58.4
  - Assets: 1,912.6 1,942.5 29.9
  - Liabilities: 2,454.9 2,543.1 88.3
  - Direct Investment: -1,237.4 -1,297.7 -60.3
    - Assets: 4.6 3.5 -1.0
    - Liabilities: 1,242.0 1,301.2 59.3
  - Portfolio Investment: 97.3 115.5 18.2
    - Assets: 216.3 223.7 7.4
    - Liabilities: 119.0 108.2 -10.8
  - Other Investments: 147.6 104.7 -42.8
    - Assets: 1,241.4 1,238.4 -3.0
    - Liabilities: 1,093.9 1,133.7 39.8
  - Reserve Assets: 450.3 476.8 26.6

### Compilation and dissemination actions to improve ESS (immediate and ongoing)
- Use video conferencing for respondent engagement and request respondents have 2020 financial statements during meetings.
- Review and update estimation ratios and methodology (freight/insurance, quarantine costs, travel credits).
- Reclassify visitor types (hotel-holiday vs hotel-business; long-stay vs short-stay) and produce separate estimates of average length of stay and average daily expenditure to refine travel credit estimates.
- Include grants-in-kind (vaccines, medical supplies) values in BOP accounts.
- Continue follow-up with DTIs on retained earnings reductions to validate classifications and other investment flows.
- Nominate staff for ESS training courses to increase capacity.
- Follow up with Sea and Airport authorities for transactions with nonresident ships, airlines, and other nonresidents and update 2020 BOP transactions.
- Review data submissions to the tax authority for additional information on external transactions and positions.
- Disseminate balance of payments and IIP statistics for 2020 and disseminate revised statistics for 2019.

### High-frequency indicators, SPEs, and training
- High-frequency indicators identified for goods, services (visitor expenditure, CBI-related credits and debits), primary income (government and DTIs), secondary income (remittances), capital account (official grants and CBI-related flows), financial account (DTIs and government), and reserves.
- Mission requested publication of available quarterly data on ECCB and SDD websites; compilation and publication included in next work program.
- Special Purpose Entities (SPEs) were not identified in Dominica; compilers should monitor developments and include SPE transactions and positions if they become relevant.
- Training: Hands-on remote training provided; three new staff participated (two from ECCB and one from SDD). Recommended nomination of staff to participate in external sector statistics training, including distance learning programs via edX and regional training.

### Selected recommended follow-ups (concise checklist)
- Follow up with Sea and Airport for transactions with nonresident ships, airlines, and other nonresidents.
- Re-estimate insurance and freight ratios for fuel and non-fuel goods imports; separate freight and insurance charges by fuel type.
- Request Discover Dominica dates for winter and summer tourism periods and use period-specific visitor survey results to calculate average length of stay and average daily expenditure.
- Request Ministry of Finance and Discover Dominica information on quarantine costs and amounts paid by nonresidents; include in travel credits and secondary income.
- Separate hotel-holiday and hotel-business visitors into long-stay and short-stay categories and estimate expenditures for each.
- Revise secondary income transfer debits to include cost to quarantine visitors less amounts paid by nonresidents.
- Follow up with FSU to confirm remittance flows for 2020.
- Follow up with Ministry of Finance and Ministry of Health on grants received as vaccines and medical supplies in 2020 and include value in secondary income and revise imports estimates accordingly.
- Follow up with CBI unit for CBI direct investment related flows for 2019 and 2020 and request information on CBI-related construction services purchased from nonresidents.
- Follow up with DTIs for additional information on reductions in accumulated retained earnings and other investment transactions.
- Use video conference facilities to collect data in absence of face-to-face interactions.
- Review tax authority data submissions for additional external transactions and positions.

_International Monetary Fund — Dominica: Balance of Payments and International Investment Position review (excerpts)._

### 2.   Balance of Payments Summary ______________________________________________________________________ 12

### 2. Balance of Payments Summary

### Summary of mission outcomes and priority recommendations
- A remote technical assistance (TA) mission on external sector statistics (ESS) was conducted to the Statistics Department of Dominica (SDD) during August 30 to September 10, 2021, as part of CARTAC work on ESS. Three ECCB staff participated; Fadhila Alfaraj (IMF STA) joined the mission.
- The SDD and the Eastern Caribbean Central Bank (ECCB) jointly compile balance of payments (BOP) and international investment position (IIP) statistics for Dominica.
- Mission objectives:
  - Provide hands-on assistance on statistical techniques and source data to review preliminary 2019 and fill data gaps for 2020 BOP and IIP.
  - Address data collection issues and compilation techniques in the context of the COVID-19 pandemic.
- Data sources and response rates:
  - Compilers relied primarily on administrative sources, including submissions to the ECCB and the Financial Services Unit.
  - The 2020 ESS survey response rate was 38 percent; with inclusion of administrative sources, a transaction-weighted response rate of 89 percent was achieved.
- Key institutional needs identified:
  - Strengthen private sector data collection and reinforce data-sharing agreements to improve availability and timeliness of data.
  - Publish available quarterly data on external transactions and positions on ECCB and SDD websites to meet stakeholders’ needs (creditors, rating agencies, investors).
- Mission requested: publication of quarterly external transaction indicators and dissemination of 2020 BOP and IIP statistics.

### Priority recommendations (selected from mission Action Plan)
- December 2021: Disseminate balance of payments and IIP statistics for 2020. — ECCB and the SDD
- June 2022: Publish available quarterly BOP selected indicators on ECCB and SDD websites (goods imports, goods exports, visitor expenditure, external transactions of the government, external transactions of DTIs, remittances, and other available external transaction data). — ECCB and the SDD
- High-priority operational steps for SDD (selected):
  - By October–December 2021: Request information from Discover Dominica on tourism period dates; use departing visitor survey results for winter and summer periods to calculate average length of stay and average daily expenditure; request quarantine cost data from Ministry of Finance and Discover Dominica; follow up with Ministry of Finance and Ministry of Health for vaccine and medical-supplies grants received in 2020 and include values in secondary income.
  - Ongoing: Follow up with CBI unit for Citizenship by Investment (CBI) direct investment related flows for 2019 and 2020; request CBI-related construction project information on short-term construction services purchased from nonresidents.
  - By May 2022 and ongoing: Use video conference facilities for meetings with respondents; review tax authority submissions for additional external transactions and positions data.
  - December 2022: Finalize provisional BOP time series compiled for the period prior to 2014 in BPM6 format.
  - June 2022: Separate hotel-visitor categories into long-stay and short-stay and re-estimate travel credits accordingly.

### Detailed technical assessment — compilation context and issues
- COVID-19 impacts:
  - Pandemic measures reduced respondents’ time and limited face-to-face survey follow-ups; in-person meetings with survey entities are restricted.
  - The 2020 visitor expenditure survey was cancelled; the last survey was December 2019. Data indicate 85 percent of 2020 visitors arrived before ports closed in March 2020.
- Data collection and sources used for 2019–20:
  - Administrative sources used extensively for DTIs, insurance companies/agencies, MTOs, and hotels; Customs Department (CD) provided imports/exports; visitor arrival statistics and visitor expenditure submissions to ECCB; government ministries and FSU reports; published financial statements.
  - Most private-sector entities are small and generally do not conduct external transactions beyond goods (captured by CD) and visitor transactions (visitor expenditure survey).
- Compilation practices:
  - Compilation work-files updated with respondent and administrative information; internal and historical consistency checks performed; opening 2020 IIP checked against closing 2019; estimates used where data gaps existed.
  - Guidelines on BPM6CG quality checks and methods to estimate for low response/coverage reviewed with compilers.

### Current account and aggregate BOP findings
- Preliminary 2020 BOP estimates:
  - Current account deficit for 2020: EC$401.9 million (30 percent of GDP).
  - This represents a decline of EC$174.9 million compared to revised 2019 current account deficit of EC$576.8 million (34.9 percent of GDP).
  - The largest contributor to the 2020 current account deficit is goods imports of EC$506.6 million.
- Revision note:
  - The revised 2020 current account deficit is EC$26.9 million greater than the March 2021 published estimate of EC$375.0 million, mainly due to a higher deficit in services; deficits increased in all service sub-categories except government services.
  - New estimates produced for 2019 indicate a reduction of EC$24.0 million in the preliminary 2019 current account deficit and an increase of EC$6.5 million in the preliminary IIP deficit.

- Table 2. Dominica: Balance of Payments Summary (EC$ millions) — Revised 2019 (A), Revised 2020 (B), Change (B-A)
  - Current Account (EC$ million): -576.8  -401.9  174.9
  - Goods balance: -714.9  -458.6  256.3
  - Exports: 43.7  48.0  4.3
  - Imports: 758.6  506.6  -252.0
  - Services (net): 153.8  -44.8  -198.6
  - Primary Income (net): -22.7  23.5  46.1
  - Secondary Income (net): 7.1  78.1  71.0
  - Capital Account: 160.1  122.5  -37.6
  - Net Borrowing from the Current and Capital Account: -416.7  -279.4  137.3
  - Net Borrowing from the Financial Account: -605.5  -69.1  536.4
  - Direct Investment: -169.9  -60.3  109.5
  - Portfolio Investment: -15.1  18.2  33.3
  - Other Investments: -362.8  -53.5  309.3
  - Reserve Assets: -57.8  26.5  84.3
  - Net Errors and Omissions: -188.9  210.3

### Goods account details and data quality issues
- Goods imports and exports:
  - Customs Department data indicate imports including insurance and freight for 2020 were EC$575.7 million.
  - ECCB and SDD estimate freight cost at 10 percent of imports and insurance cost at 2 percent of imports; after deducting estimated insurance and freight, imports at FOB values were estimated at EC$506.6 million for 2020, a reduction of EC$252.0 million or 33 percent from 2019.
  - Exports for 2020 estimated at EC$48.0 million, an increase of EC$4.3 million relative to 2019.
  - Imports for 2019 were elevated by post–Hurricane Maria reconstruction; imports for 2020 align more with pre-2017 values (three-year period ending 2016 imports averaged EC$527.4 million).
- Freight and insurance estimation review:
  - Mission noted freight ratio appears low; shipping agent suggested a freight ratio of 15 percent might be more representative. Recommendation to separate freight and insurance charges for fuel and non-fuel imports and to review/update estimation ratios.
- Missing data and adjustments:
  - Additional data on goods procured in ports are required (Airport and Sea Port Authority); oil importers provided fuel sales to nonresidents but Airport/Seaport Authority data were not received.
  - Imports should be revised to include an estimate for the value of non-cash grants (vaccines and medical supplies) received in 2020; CD records volumes but not values for these items. SDD should obtain values from Ministry of Finance and Ministry of Health and include them in goods debits and secondary income credits.

### Services account (preliminary observations)
- Preliminary data indicate a decline in the services balance for 2020 compared to 2019; mission noted increased deficit in services is a main driver of the revision between the March 2021 estimate and the mission estimate for 2020.
- Specific service sub-categories (visitor expenditure, CBI-related credits/debits, government services) considered in compilation and revision activities; all service sub-categories showed increased deficits except government services.

### Compilation and dissemination actions to improve ESS
- Immediate and ongoing actions:
  - Use video conferences for respondent engagement and request respondents have 2020 financial statements during meetings.
  - Review and update estimation ratios and methodology (freight/insurance, quarantine costs, travel credits).
  - Reclassify visitor types (hotel-holiday vs hotel-business; long-stay vs short-stay) and produce separate estimates of average length of stay and average daily expenditure to refine travel credit estimates.
  - Include grants-in-kind (vaccines, medical supplies) values in BOP accounts.
  - Continue follow-up with DTIs on retained earnings reductions to validate classifications and other investment flows.
  - Nominate staff for ESS training courses to increase capacity.

*Source: IMF mission report — “2. Balance of Payments Summary”*

### 2019. Available data suggests that the  services balance declined by EC$198.6 million  from a

### 1dmaea2022003 - 2019. Available data suggests that the  services balance declined by EC$198.6 million  from a

### Services (2020)
- Services balance declined by EC$198.6 million from a surplus of EC$153.8 million in 2019 to a deficit of EC$44.8 million in 2020.
- Services credits declined by EC$306.4 million.
  - Travel credits declined by EC$284.4 million (this sub-sector accounts for 93 percent of the decline in services credits).
- Net travel surplus for 2020: EC$64.1 million, a decline of 79 percent relative to EC$310.9 million in 2019.
  - Stop-over visitors declined by 76 percent in 2020.
  - Cruise passengers declined by 49 percent in 2020.
  - 85 percent of stop-over visitors and 100 percent of cruise passengers arrived in the first quarter of 2020.
- Government quarantine costs for nonresidents were absorbed by the state and should be included in travel services credits and secondary income debits.
- Visitor Expenditure Surveys for 2020 were cancelled; estimates used December 2019 survey averages for average daily expenditure and average length of stay.
- Recommended methodological improvements:
  - Use winter-period survey averages for winter months and summer-period survey averages for summer months.
  - Separate hotel-holiday and hotel-business visitors into short-stay and long-stay categories and compute average length of stay and average daily expenditure for each category.
  - Revise travel credits to include updated summer/winter averages and cost to quarantine visitors.
- Services debits declined by EC$109.2 million.
  - Travel services debits declined by EC$37.5 million.
  - Transportation services debits declined by EC$46.2 million.
- Freight debits declined by EC$28.6 million.
  - Freight cost fell from EC$86.2 million in 2019 to EC$57.6 million in 2020 (freight charges estimated as 10 percent of imports).
  - Mission recommended reviewing the ratio used to estimate freight charges.

### Primary Income
- Primary income surplus for 2020: EC$23.5 million.
  - Change: increase by EC$46.1 million from a deficit of EC$22.7 million in 2019.
  - Total direct investment income debits declined by EC$49.0 million.
  - Reinvested earnings component declined by EC$75.5 million from EC$31.5 million in 2019 to negative EC$44.0 million in 2020.
  - Out-turn dominated by activities of one DTI; mission emphasized need to follow up with this DTI.

### Secondary Income
- Secondary income surplus for 2020: EC$78.1 million.
  - Increase of EC$71.0 million relative to a surplus of EC$7.1 million in 2019.
  - Net personal transfers increased by EC$66.3 million (accounts for 93 percent of the increase).
    - Personal transfers credits increased by EC$56.9 million to EC$176.1 million.
    - Personal transfers debits declined by EC$9.4 million to EC$59.4 million.
  - Estimates derived from submissions to the ECCB by DTIs and to the FSU by remittance companies; compilers should follow up to confirm.

### Capital Account
- Capital account surplus declined by EC$37.6 million to EC$122.5 million in 2020, due primarily to reductions in capital transfers to general government.

### Net Lending/Net Borrowing Position
- Net borrowing position from current and capital account for 2020: EC$279.4 million.
  - Current account deficit: EC$401.9 million.
  - Capital account surplus: EC$122.5 million.
- Financial account estimated net borrowing position: EC$69.1 million (from available data).

### Financial Account (2020)
- Direct investment: net borrowing position of EC$60.3 million.
  - Direct investment liabilities: net borrowing position of EC$59.3 million (relative to net borrowing of EC$169.9 million for 2019).
- Portfolio investment: net lending position of EC$18.2 million (relative to net borrowing of EC$15.1 million for 2019).
  - Economy net acquired portfolio investment assets of EC$7.4 million (relative to net acquisition of EC$17.1 million in 2019).
  - Net portfolio liabilities declined by EC$10.8 million (relative to a net increase of EC$22.2 million in 2019).
- Other investment: net borrowing position of EC$53.5 million.
  - Net assets declined by EC$26.4 million (decline in loan assets of DTIs).
  - Net liabilities increased by EC$27.1 million.
    - Currency and deposits liabilities declined by EC$90.0 million.
    - Loan liabilities of the Government increased by EC$115.1 million.
- Reserve assets increased by EC$26.5 million in 2020 (improvement relative to a decline of EC$57.8 million in 2019).

### Net Errors and Omissions
- Net errors and omissions for 2020: EC$210.3 million (positive).
  - For 2019, errors and omissions: negative EC$188.9 million.
  - Published 2020 balance of payments showed errors and omissions of EC$78.9 million.
  - Main contributor to increase in errors and omissions: revised data of DTIs — other investment net acquisition of financial assets increased EC$260.7 million, offset by increase in net incurrence of liabilities EC$167.5 million.
- BPM6 paragraph 2.24 implications (sign convention described in source).

### International Investment Position (IIP)
- Net liability position increased by EC$58.4 million from EC$542.3 million at end-2019 to EC$600.7 million at end-2020.
- Table 3 (EC$ millions) — Revised 2019 (A), Revised 2020 (B), Change (B-A):
  - Net Position: -542.3 -600.7 -58.4
  - Assets: 1,912.6 1,942.5 29.9
  - Liabilities: 2,454.9 2,543.1 88.3
  - Direct Investment: -1,237.4 -1,297.7 -60.3
    - Assets: 4.6 3.5 -1.0
    - Liabilities: 1,242.0 1,301.2 59.3
  - Portfolio Investment: 97.3 115.5 18.2
    - Assets: 216.3 223.7 7.4
    - Liabilities: 119.0 108.2 -10.8
  - Other Investments: 147.6 104.7 -42.8
    - Assets: 1,241.4 1,238.4 -3.0
    - Liabilities: 1,093.9 1,133.7 39.8
  - Reserve Assets: 450.3 476.8 26.6

### Recommended Actions (selected)
- Follow up with Sea and Airport for transactions with nonresident ships, airlines, and other nonresidents and update 2020 BOP transactions.
- Re-estimate ratios used to estimate insurance and freight charges for fuel and non-fuel goods imports.
- Request from Discover Dominica dates for winter and summer tourism periods.
- Use period-specific results from survey of departing visitors to calculate average length of stay and average daily expenditure per person for winter and summer periods separately.
- Request Ministry of Finance and Discover Dominica information on cost to quarantine visitors and amounts paid by nonresidents.
- Revise travel credits to include updated estimates for summer and winter periods and quarantine costs.
- Separate hotel-holiday and hotel-business visitors into long-stay and short-stay categories and estimate average length of stay, average daily expenditure, and total expenditure for each subcategory.
- Revise secondary income transfer debits to include cost to quarantine visitors less amounts paid by nonresidents.
- Follow up with FSU to confirm remittance flows for 2020.
- Follow up with Ministry of Finance and Ministry of Health on grants received as vaccines and medical supplies in 2020 and include value in secondary income and revise imports estimates accordingly.
- Follow up with CBI unit for CBI direct investment related flows for 2019 and 2020 and request information on CBI-related construction services purchased from nonresidents (short-term and ongoing).
- Follow up with DTIs for additional information and clarifications on reductions in accumulated retained earnings and other investment transactions.
- Use video conference facilities to collect data in absence of face-to-face interactions.
- Review data submissions to the tax authority for additional data on external transactions and positions.
- Disseminate balance of payments and IIP statistics for 2020 and disseminate revised statistics for 2019.

### High Frequency Indicators
- Available quarterly/high-frequency data sources identified for goods, services (visitor expenditure, CBI-related credits and debits), primary income (government and DTIs), secondary income (remittances), capital account (official grants and CBI-related flows), financial account (DTIs and government), and reserves.
- Mission requested publication of available quarterly data on ECCB and SDD websites.
- Compilation and publication of quarterly balance of payments and IIP statistics included in next work program.

### Special Purpose Entities (SPEs)
- SPEs were not identified in Dominica; compilers indicated SPEs are not operating in the economy.
- SDD should monitor developments and include SPE transactions and positions if they become relevant.
- SPE definition components summarized from the source (a–d).

### Training
- Hands-on training on compilation of ESS provided remotely.
- Three new staff participated: two from the ECCB and one from the SDD.
- Recommended: nominate staff to participate in external sector statistics training, including distance learning programs via edX and regional training.

### Officials Met During the Mission
- Lorna Prevost Stephens, SDD (Chief Statistician)
- Nella Jules, SDD
- Pamela Benjamin, SDD
- Colin Dalrymple, SDD
- Prunela Charles-Williams, ECCB (Head of Balance of Payments Unit)
- Verne Cazaubon, ECCB
- Shervone Alexander, ECCB

*International Monetary Fund — Dominica: Balance of Payments and International Investment Position review (excerpts).*

### Appendix I. Assessment of the 2020 Action Plan

### Appendix I. Assessment of the 2020 Action Plan

### Outcome: Source data are adequate for the compilation of these macroeconomic statistics (balance of payments and IIP statistics)
- Priority actions and implementation status:
  - Follow up with large entities (insurance companies/agencies, telecommunication companies, MTOs and hotels) for information on their 2019 external transactions and positions. Target: March 2021. Status: Completed.
  - Re-estimate ratios used to estimate insurance and freight charges for fuel and non-fuel goods imports. Target: June 2021. Status: To be completed with ECCB.
  - Request from the FSU to conduct the survey of money transfer operators. Target: March 2021. Status: Ongoing.
  - Review and improve estimates of imports by:
    - a) Contact the CD re: inclusion of duty-exempt government and private-sector imports in total imports.
    - b) If excluded, contact MOF and private entities for import values.
    - c) Use information to revise provisional estimates of missing imports. Target: June 2021. Status: Ongoing. Note: Discussions have occurred. Data validation and revision ongoing.
  - Verify if airport authority data include external transactions of the Sea Port Authority. Target: March 2021. Status: Completed.
  - Follow up with the FSU and MTOs to identify factors contributing to differences between MTO data and FSU data. Target: March 2021. Status: Ongoing. Note: FSU data reflect audited data and compilers decided to use this source for BOP compilation.
  - Reduce direct investment liability closing position for 2018 by the amount included for Ross University. Target: September 2021. Status: Awaiting confirmation from the Government on the treatment of the assets of Ross University.
  - Use of video conference facilities for meetings with respondents when face-to-face interactions absent. Status: Ongoing. Implementation: To implemented.
  - Review estimates of average expenditure of students from visitor expenditure survey to determine if tuition fees are properly compiled; if deficient, develop alternative estimates from enrollment and university-provided tuition information. Target: June 2021. Status: Ongoing. Note: Further investigation to include tuition fees. Currently adjusted by changes in enrollment.
  - Review estimates of education services debits for 2019 to determine inclusion of tuition fees paid to nonresident universities by resident students abroad; develop estimates if excluded. Target: June 2021. Status: Government payments included in Treasury Form. Gap identified for students engaged in online learning.
  - Review data submissions to the tax authority for additional data on external transactions and positions to improve provisional BOP and IIP estimates for 2019. Status: Ongoing.

### Outcome: Longer time series compiled and made available internally and/or disseminated to the public for balance of payments and IIP
- Actions and status:
  - Finalize provisional BOP time series compiled for period prior to 2014 in BPM6 format (improves consistency with 2014–2017 data). Target: December 2021. Status: December 2022.
  - Disseminate BOP statistics for 2019. Target: March 2021. Status: Completed.
  - Disseminate IIP statistics for 2019. Target: March 2021. Status: Completed.

### Outcome: Improved timeliness of data made available internally and/or disseminated to the public (shorter delays)
- Action:
  - Develop an advance release calendar for ESS and publish it on the ECCB website and MOF website. Target: December 2021. Status: Postponed to a later date, to be determined.

### Outcome: Staff capacity increased through training, especially on developing source data, compilation methods, and dissemination
- Action:
  - Nominate staff to participate in external sector statistics training courses. Target: Ongoing. Status: Continuous.

### Key issues noted in implementation
- Use of audited FSU data prioritized where discrepancies exist between FSU and MTO data.
- Ongoing validation and revision of import estimates and student tuition treatment (including online learning gap).
- Awaiting government confirmation on Ross University asset treatment affecting 2018 direct investment liabilities.

---

### Appendix II. Revised 2019 Balance of Payments — Key figures (Preliminary 2019 vs Revised 2019)
- Current Account: Preliminary 2019 (600.8) ; Revised 2019 (576.8) ; Change 24.0
- Credits: 726.3 → 728.0 ; Change 1.7
- Debits: 1,327.1 → 1,304.7 ; Change (22.3)
- Goods Balance: (709.5) → (714.9) ; Change (5.4)
  - Exports: 49.0 → 43.7 ; Change (5.3)
  - Imports: 758.5 → 758.6 ; Change 0.1
- Services Balance: 86.3 → 153.8 ; Change 67.5
  - Exports: 490.9 → 512.5 ; Change 21.6
  - Imports: 404.7 → 358.7 ; Change (45.9)
- Primary Income: (26.7) → (22.7) ; Change 4.0
  - Credits: 40.2 → 42.1 ; Change 1.9
  - Debits: 66.9 → 64.8 ; Change (2.1)
- Secondary Income: 49.2 → 7.1 ; Change (42.1)
  - Credits: 146.2 → 129.7 ; Change (16.5)
  - Debits: 97.0 → 122.6 ; Change 25.6
- Capital Account: 131.4 → 160.1 ; Change 28.7
  - Credits: 131.4 → 160.1 ; Change 28.7
- General Government (Capital Account component): 130.9 → 143.8 ; Change 12.9
- Financial Corporations (Capital Account component): 0.5 → 16.3 ; Change 15.8
- Net lending (+) / net borrowing (-) (current and capital): (469.4) → (416.7) ; Change 52.7
- Financial Account net lending (+)/net borrowing (-): (614.5) → (605.5) ; Change 9.0
  - Direct Investment: (160.3) → (169.9) ; Change (9.5)
    - Net Acquisition of Financial Assets: 0.2 → 0.1 ; Change (0.0)
    - Net Incurrence of Liabilities: 160.5 → 170.0 ; Change 9.5
  - Portfolio Investment: (9.1) → (15.1) ; Change (6.0)
    - Net Acquisition of Financial Assets: 13.6 → 7.1 ; Change (6.5)
    - Net Incurrence of Liabilities: 22.7 → 22.2 ; Change (0.5)
  - Other Investment: (378.9) → (362.8) ; Change 16.0
    - Net Acquisition of Financial Assets: (491.1) → (503.6) ; Change (12.5)
    - Net Incurrence of Liabilities: (112.3) → (140.8) ; Change (28.5)
  - Reserve Assets: (66.3) → (57.8) ; Change 8.5
- Net Errors and Omissions: (145.1) → (188.9)

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### Appendix III. Revised 2019 International Investment Position — Key figures (Preliminary 2019 vs Revised 2019)
- Net Position: -535.8 → -542.3 ; Change -6.5
- Assets: 1,927.5 → 1,912.6 ; Change -14.9
- Liabilities: 2,463.3 → 2,454.9 ; Change -8.4
- Direct Investment Net Position: -1,251.7 → -1,237.4 ; Change 14.3
  - Assets: 4.6 → 4.6 ; Change 0.0
  - Liabilities: 1,256.3 → 1,242.0 ; Change -14.3
- Portfolio Investment Net Position: 104.6 → 97.3 ; Change -7.4
  - Assets: 222.8 → 216.3 ; Change -6.5
  - Liabilities: 118.2 → 119.0 ; Change 0.8
- Other Investments Net Position: 161.0 → 147.6 ; Change -13.5
  - Assets: 1,249.8 → 1,241.4 ; Change -8.4
  - Liabilities: 1,088.8 → 1,093.9 ; Change 5.1
- Reserve Assets: 450.3 → 450.3 ; Change 0.0

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### Appendix IV. Preliminary 2020 Balance of Payments — Selected comparisons (Revised 2019 (A) vs Revised 2020 (B); Published 2020 (C) comparisons)
- Current Account: (576.8) → (401.9) ; Change 174.9. Published 2020 (C): (375.0). Revised 2020 (B) vs Published 2020 (C): (401.9) ; Change (26.9)
- Credits: 728.0 → 478.3 ; Change (249.6). Published 2020: 437.3. Revised 2020 vs Published: 478.3 ; Change 41.0
- Debits: 1,304.7 → 880.2 ; Change (424.5). Published 2020: 812.4. Revised 2020 vs Published: 880.2 ; Change 67.8
- Goods Balance: (714.9) → (458.6) ; Change 256.3. Published 2020: (465.8). Revised 2020 vs Published: (458.6) ; Change 7.2
  - Exports: 43.7 → 48.0 ; Change 4.3. Published 2020: 41.3. Revised vs Published: 48.0 ; Change 6.7
  - Imports: 758.6 → 506.6 ; Change (252.0). Published 2020: 507.1. Revised vs Published: 506.6 ; Change (0.5)
- Services Balance: 153.8 → (44.8) ; Change (198.6). Published 2020: (2.9). Revised vs Published: (44.8) ; Change (41.9)
  - Services Exports: 512.5 → 204.7 ; Change (307.8). Published 2020: 229.0. Revised vs Published: 204.7 ; Change (24.3)
  - Services Imports: 358.7 → 249.5 ; Change (109.2). Published 2020: 231.9. Revised vs Published: 249.5 ; Change 17.6
- Primary Income: (22.7) → 23.5 ; Change 46.1. Published 2020: 37.3. Revised vs Published: 23.5 ; Change (13.8)
  - Primary Credits: 42.1 → 36.1 ; Change (6.0). Published 2020: 33.6. Revised vs Published: 36.1 ; Change 2.5
  - Primary Debits: 64.8 → 12.6 ; Change (52.1). Published 2020: (3.7). Revised vs Published: 12.6 ; Change 16.3
- Secondary Income: 7.1 → 78.1 ; Change 71.0. Published 2020: 56.4. Revised vs Published: 78.1 ; Change 21.7
  - Secondary Credits: 129.7 → 189.5 ; Change 59.8. Published 2020: 133.4. Revised vs Published: 189.5 ; Change 56.1
  - Secondary Debits: 122.6 → 111.4 ; Change (11.2). Published 2020: 77.0. Revised vs Published: 111.4 ; Change 34.4
- Capital Account: 160.1 → 122.5 ; Change (37.6). Published 2020: 128.9. Revised vs Published: 122.5 ; Change (6.4)
  - General Government (Capital): 143.8 → 121.7 ; Change (22.1). Published 2020: 128.2. Revised vs Published: 121.7 ; Change (6.6)
  - Financial Corporations (Capital): 16.3 → 0.8 ; Change (15.5). Published 2020: 0.6. Revised vs Published: 0.8 ; Change 0.2
- Net lending (+)/net borrowing (-) (current and capital): (416.7) → (279.4) ; Change 137.3. Published 2020: (246.1). Revised vs Published: (279.4) ; Change (33.3)
- Financial Account net lending (+)/net borrowing (-): (605.5) → (69.1) ; Change 536.4. Published 2020: (167.3). Revised vs Published: (69.1) ; Change 98.1
  - Direct Investment: (169.9) → (60.3) ; Change 109.5. Published 2020: (67.9). Revised vs Published: (60.3) ; Change 7.5
    - Net Acquisition of Financial Assets: 0.1 → (1.0) ; Change (1.2). Published 2020: 0.2. Revised vs Published: (1.0) ; Change (1.3)
    - Net Incurrence of Liabilities: 170.0 → 59.3 ; Change (110.7). Published 2020: 68.1. Revised vs Published: 59.3 ; Change (8.8)
  - Portfolio Investment: (15.1) → 18.2 ; Change 33.3. Published 2020: 20.8. Revised vs Published: 18.2 ; Change (2.6)
    - Net Acquisition of Financial Assets: 7.1 → 7.4 ; Change 0.3. Published 2020: 8.1. Revised vs Published: 7.4 ; Change (0.7)
    - Net Incurrence of Liabilities: 22.2 → (10.8) ; Change (33.0). Published 2020: (12.7). Revised vs Published: (10.8) ; Change 1.9
  - Other Investment: (362.8) → (53.5) ; Change 309.3. Published 2020: (146.7). Revised vs Published: (53.5) ; Change 93.2
    - Net Acquisition of Financial Assets: (503.6) → (26.4) ; Change 477.2. Published 2020: (287.1). Revised vs Published: (26.4) ; Change 260.7
    - Net Incurrence of Liabilities: (140.8) → 27.1 ; Change 167.9. Published 2020: (140.4). Revised vs Published: 27.1 ; Change 167.5
  - Reserve Assets: (57.8) → 26.5 ; Change 84.3. Published 2020: 26.5. Revised vs Published: 26.5 ; Change -
- Net Errors and Omissions: (188.9) → 210.3 ; Change 78.9. Published 2020: 210.3. Revised vs Published: 131.4

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### Appendix V. Reconciliation Between Merchandise Source Data and Total Goods on a Balance of Payments Basis — Key adjustments
- Adjustments and treatment (Exports / Imports):
  - Goods procured in ports by carriers: Yes / Yes
  - Fish catch, minerals from seabed sold from resident-operated vessels: None / None
  - Illegal goods: Not recorded / Not recorded
  - Goods lost/destroyed in transit: Yes / Yes
  - Goods changing ownership in customs warehouses or other zones: None / None
  - Migrants’ personal effects: Yes / Yes (note 1: personal property of people changing residency not classified as transaction; identified when recorded by Customs)
  - Goods imported for construction projects by nonresident enterprises: Not recorded / Not recorded
  - Goods for repair or storage without change of ownership: Yes / Yes
  - Returned goods: Yes / Yes
  - Goods sent abroad or returned after processing without change of ownership: None / None
  - High-value capital goods: Yes / Yes (note 2: imports of high value capital goods have not occurred; if change in economic ownership did not coincide with Customs recording period adjustment would be made)
  - CIF/FOB adjustment: n.a. / Yes
  - Net exports of goods under merchanting: None / n.a.
  - Nonmonetary gold: Yes / Yes

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### Appendix VI. Services Account — Collection of Data (Exports (credits) / Imports (debits))
- Manufacturing services on physical inputs owned by others: None / None
- Maintenance and repair services n.i.e.: Survey forms / Survey forms
- Transport: Survey forms / Freight calculation and survey forms
- Travel: Visitor arrivals and expenditure surveys / Mirror data for regional travel and passenger movements. (GDP growth for historical data)
- Construction: Not recorded / Not recorded (note: construction projects usually take more than one year and are recorded under direct investment)
- Insurance and pension services: Survey forms and National Accounts data / Survey forms and National Accounts data
- Financial services: Survey forms / Survey forms
- Charges for the use of intellectual property n.i.e.: Survey forms / Survey forms (survey forms require information; data reported is negligible)
- Telecommunications, computer, and information services: Survey forms / Survey forms
- Other business services: Survey forms / Survey forms
- Personal, cultural, and recreational services: Survey forms / Survey forms
- Government goods and services n.i.e.: Embassies and other official entities / Official entities
- Total services: n.i.e. (not included elsewhere)

*Appendix I. Assessment of the 2020 Action Plan (as presented in the provided IMF content).*

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_Source: https://www.imf.org/-/media/files/publications/cr/2022/english/1dmaea2022003.pdf_