Annual Economic and Financial Review -December 2018

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Eastern Caribbean Central Bank

D O M I N I C A

Overview

Preliminary estimates indicate that the

Dominican economy expanded by 0.5 per

cent in 2018, buoyed by growth in major

sectors, led by construction, after hurricane

Maria in September 2017

5 .

Consumer prices

rose by 2.8 per cent on an end of period basis.

While the central government’s fiscal

operations resulted in an overall deficit, the

total disbursed outstanding debt decreased. In

the banking system, monetary liabilities and

domestic credit expanded, whereas net foreign

assets declined. The commercial banking

system remained liquid, but nonperforming

In keeping with international standards, the ECCB updated the terminology used to describe economic activity in the

ECCU. Accordingly, the Bank now reports real change in the economy using real Gross Domestic Product (GDP) at

market prices and not Gross Value Added (GVA) at basic prices as used in previous reports of the Annual Economic

and Financial Review (AEFR). However, GVA will remain applicable for output by sector.

loans exceeded the prudential benchmark

during the period under review.

Economic activity in Dominica is likely to

improve further in 2019, based on expected

developments in key sectors.

Furthermore,

the overall fiscal balance is anticipated to

deteriorate, mainly owing to a rise in

expenditure for the recovery effort. The

merchandise trade deficit is likely to widen,

largely reflecting the sustained importation of

construction material. Downside risks to this

outlook include a deceleration in Citizenship

by Investment programme funds; the receipt

of fewer grants than expected, which could

slow down the pace of recovery efforts; and