2020 Annual Economic and Financial Review

2020 Annual Economic and Financial Review

COMMONWEALTH OF DOMINICA

Value added in the hotels and restaurants sector, a proxy for the tourism industry, is estimated to have declined by 61.1 per cent in 2020, in contrast to a 57.7 per cent expansion in the previous year. The negative outturn was driven by a 56.4 per cent decline in the total number of visitors to 145,877, due to a significant reduction in stay over arrivals as well as the closure of the cruise sub-industry in March of 2020.

Inflationary

pressures

were

observed in 2020. The consumer price index rose by 1.7 per cent, associated with increases in the prices of food & non-alcoholic beverages (1.9 per cent) and housing, utilities, gas and fuels (3.0 per cent). Fiscal Developments The fiscal operations of the central government resulted in a preliminary overall deficit of $205.4m (16.3 per cent of GDP) relative to one of $258.2m (16.6 per cent of GDP) recorded in 2019. Similarly, a primary deficit of $173.1m (13.7 per cent of GDP) was realized, down from one of $223.2m (14.4 per cent of GDP) in 2019. The improvement in the fiscal balances was mainly driven by a reduction in expenditure (capital expenditure declined by 46.6 per cent), which outpaced a decline in revenue caused by the COVID-19 pandemic.

Dominica Visitor Arrivals In thousands

300.0

250.0

200.0

150.0

100.0

50.0

0.0

2016

2017

2018

2019

2020

Stay-overs

Cruise Ship Passengers (Includes Excursionist)

Yacht arrivals

On the upside, value added in the manufacturing sector grew by 4.6 per cent following an 8.0 per cent expansion in 2019, driven by an increase in the production of soaps. In the agriculture, livestock and forestry sector, value added rose by an estimated 5.3 per cent.

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