Economic and Financial Review - June 2019

June 2019 Economic and Financial Review THE COMMONWEALTH OF DOMINICA

half of 2019, compared with a 2.5 per cent increase during the corresponding period of 2018. The deceleration in the inflation rate was largely attributable to the easing of supply issues in the post hurricane Maria period. One of the major categories that contributed to the slower rate of inflation is housing, utilities, gas and fuels, which grew by 1.2 per cent in the review period compared with a growth rate of 6.5 per cent last year. The food and non-alcoholic beverages, as well as the transport sub- indices also recorded lower growth rates of 0.9 per cent and 0.3 per cent, respectively.

Dominica Visitor Arrivals

Thousands

150.0

100.0

50.0

0.0

17 Q1 17 Q2 17 Q3 17 Q4 18 Q1 18 Q2 18 Q3 18 Q4 19 Q1 19 Q2

Stay-overs Cruise Ship Passengers

Yacht Passengers Excursionists

Output in the agricultural sector is estimated to have increased in the period January to June 2019, relative to the same period last year. The production of bananas was estimated to have rebounded due to the major replanting effort, which took place in 2018 following hurricane Maria in September 2017. The output of non-banana crops and livestock were also estimated to have increased during the period. The performance of the manufacturing sector in the first half of 2019 improved in comparison to the same period in 2018. A 6.0 per cent increase in the production of paints to 117,473 gallons was observed. In addition, the production of beverages grew by 47.7 per cent to 88,255 cases, reflecting a substantial expansion in productive capacity following hurricane Maria.

Dominica Consumer Price Index Percentage Change

%

0.0 2.0 4.0 6.0

-6.0 -4.0 -2.0

17 Q1 17 Q2 17 Q3 17 Q4 18 Q1 18 Q2 18 Q3 18 Q4 19 Q1 19 Q2

All Items Food & Non-Alchoholic Beverages Energy

Note: Energy includes Housing, Utilities, Gas & Fuels

Fiscal and Debt Developments The fiscal operations of the central government resulted in an overall deficit of $169.9m in the first six months of 2019, compared with a deficit of $74.7m recorded in the corresponding period of 2018.

The consumer price index is estimated to have risen by 0.6 per cent during the first

43

Eastern Caribbean Central Bank