Economic and Financial Review - June 2019

T H E C O M M O N W E A LT H O F D O M I N I C A

Overview

the overall level of economic activity in the remainder of 2019. However, the overall fiscal balance is anticipated to deteriorate, mainly owing to an increase in expenditure for the on-going recovery effort. The merchandise trade deficit is likely to widen, reflecting increased imports of construction materials and a reduction in export receipts. Downside risks to this outlook include a deceleration in the Citizenship by Investment programme inflows; the receipt of fewer grants than expected, which can slow down the pace of the recovery efforts; Brexit negotiations; the trade war between the USA and China and adverse weather.

Preliminary estimates indicate that economic activity in the Commonwealth of The Commonwealth of Dominica for the first half of 2019 expanded. Consumer prices rose by 0.6 per cent on an end of period basis. The central government’s fiscal operations resulted in an overall deficit and total disbursed outstanding debt is estimated to have increased. In the banking system, monetary liabilities and net foreign assets fell, while domestic credit expanded. The commercial banking system remained highly liquid; however, non-performing loans improved, although the prudential benchmark was still exceeded. The pace of the recovery is expected to increase, leading to a further expansion in

Real Sector Developments The Commonwealth of Dominica has been in a rebuilding and recovery phase since the

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Eastern Caribbean Central Bank