2020 Annual Economic and Financial Review

2020 Annual Economic and Financial Review

COMMONWEALTH OF DOMINICA

2020 an outstanding total of $1,288.6m (83.1 per cent of GDP) in 2019. This development largely reflected an expansion in the outstanding debt of central government, which accounted for 89.0 per cent of total debt. Banking Sector Developments Broad money liabilities (M2) decreased by 11.8 per cent to $1, 389.1m (110.0 per cent of GDP) during 2020, compared with a decline of 6.6 per cent to $1,574.2m (101.5 per cent of GDP) during 2019. Domestic claims (credit) grew by 2.2 per cent, as the private sector claims (credit) increased (8.6 per cent). Claims on private sector increased as claims to businesses and households increased respectively by 11.1 and 7.1 per cent during 2020. compared with

Dominica Public Finance (EC$M)

100.0 200.0 300.0 400.0 500.0 600.0 700.0 800.0

(200.0) (100.0) 0.0

2016

2017

2018

2019

2020

Current Revenue

Current Expenditure

Current Balance (before grants)

Capital Expenditure

The current account balance deteriorated to $69.1m, as current revenue decreased by 24.2 per cent to $491.7m (38.9 per cent of GDP), from $648.4m (41.8 per cent of GDP) in 2019. This decline was largely influenced by a 26.7 per cent contraction in tax revenue. Also contributing to the deterioration in current revenue was a decline of 19.1 per cent to $172.8m in non-tax revenue, as the Economic Citizenship Programme receipts, which constitutes the largest proportion of non-tax revenue, declined. Simultaneously, current expenditure fell by 10 per cent to $560.8m (44.4 per cent of GDP), from $622.8m (40.2 per cent of GDP) one year ago, led by a 35.1 per cent decrease in transfers and subsidies. The total disbursed outstanding public sector debt increased by 15.3 per cent to $1,485.2m (117.6 per cent of GDP) at the end of

Dominica Selected Monetary Indicators Annual Percentage Change

80.0

50.00

40.00

60.0

30.00

40.0

20.00

20.0

10.00

0.00

0.0

(10.00)

(Net Foreign Assets)

(Money & Credit)

(20.0)

(20.00)

(40.0)

(30.00)

2016

2017

2018

2019

2020

Credit

Money

Net Foreign Assets

22