2020 Annual Economic and Financial Review

2020 Annual Economic and Financial Review

COMMONWEALTH OF DOMINICA

COMMONWEALTH OF DOMINICA

Overview Preliminary estimates indicate that the economy of the Commonwealth of Dominica contracted by 17.1 per cent in 2020, in contrast to 3.5 per cent growth in 2019. This performance was due to the adverse impact of COVID-19 on key sectors in the economy.

The economy is expected to rebound in 2021, mostly dependent on the pace of recovery of major trading partners. However, risks are tilted to the downside with a slowdown in revenue from CBI.

Real Sector Developments

The negative impact of COVID-19 was evident on most of the major economic sectors. Value added in the construction sector, which accounted for 5.1 per cent of GDP, fell by 56.6 per cent, due to a slowdown in public sector construction, as the government prioritized spending on the health sector to ensure that the country was able to handle the impact of the COVID-19 pandemic.

Dominica Selected Economic Indicators Annual Percentage Change

10.0

5.0

0.0

(5.0)

(10.0)

(15.0)

(20.0)

2016

2017

2018

2019

2020

Real GDP

Nominal GDP

Consumer Price Index

20