IMF Staff Country Reports

The 2025 Article IV Consultation highlights that Dominica’s economic outlook is positive, predicated on the implementation of the country’s economic modernization and development agenda, but risks weigh on the downside. Real gross domestic product (GDP) grew by 3.5 percent in 2024, supported by a recovery in tourism and targeted development investment to boost economic capacity and competitiveness. Fiscal and external imbalances are expected to narrow gradually, but more ambitious consolidation is needed to bring debt below the prudential currency union benchmark, mitigate disaster risks, and support resilient growth. Public debt has steadily declined from its pandemic peak but remains elevated at 100 percent of GDP. Structural reforms are critical to fostering resilient and sustainable growth. Priorities include policies to alleviate impediments to financial intermediation, labor market performance, and innovation and allocative efficiency. Concerted efforts to bolster institutional frameworks to mitigate risks and support surveillance, economic planning, and policy execution should continue.