Annual Economic and Financial Review -December 2018

2018 Annual Economic and Financial Review

DOMINICA

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Eastern Caribbean Central Bank

adverse weather. On the upside, the

government’s focus on building climate

resilient infrastructure and economic sectors

can potentially reduce the impact of future

natural disasters on the economy.

Real Sector Developments

Following the passage of hurricane Maria

on 18 September 2017, economic activity

was significantly impaired due to the large

magnitude of the destructio

n 6 .

This

development resulted in an estimated

contraction in economic activity of

9.5 per cent in 2017.

Although output of the most productive

sectors remained subdued, economic activity

According to the World Bank’s 2017 Post-Disaster Needs Assessment, total damage and losses from hurricane Maria

are estimated to be 226.0 per cent of Dominica’s 2016 gross domestic product (GDP) or $3,539.0m.

is estimated to have rebounded to growth of

0.5 per cent in 2018, largely due to the

reconstruction effort.

Value added in the construction sector is

estimated to have expanded by 65.0 per cent,

resulting in an increase in its contribution to

total output from 5.5 per cent in 2017 to

9.6 per cent in 2018. This outturn reflected

developments in both the public and private

sectors. Capital spending by the government

rose by 44.1 per cent ($114.7m) to $374.7m,

mainly associated with the fast pace of

reconstruction and rehabilitation activities

post hurricane Maria. Public sector

construction was complemented by ongoing

Citizenship by Investment funded private

sector projects such as the construction of the

Anichi Resort and Jungle Bay Hotel, and the

winding up of construction of the Range

Developments’ Cabrits Resort Kempinski.

Also supporting the expansion in private

sector construction, there was an estimated

increase in residential construction. This

development was evidenced by a rise in the

number of starts, as residents continued to

rebuild and repair homes that were damaged

during the passage of hurricane Maria.

Bolstered by the surge in construction activity,