Annual Economic and Financial Review -December 2018

2018 Annual Economic and Financial Review

DOMINICA

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.

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,

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 destruction 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

6 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.

______________________________________________________________________________ 46 Eastern Caribbean Central Bank