June 2020 Economic and Financial Review

June 2020 Economic and Financial Review THE COMMONWEALTH OF DOMINICA

a general decline in global demand.

Dominica Consumer Price Index Percentage Change

Total production is estimated to have

%

6.0

declined largely due to 12.0 per cent drop in

4.0

2.0

paints and a 4.0 per cent decline in

0.0

beverages.

-2.0

-4.0

18 Q1 18 Q2 18 Q3 18 Q4 19 Q1 19 Q2 19 Q3 19 Q4 20 Q1 20 Q2

All Items Food & Non-Alchoholic Beverages Energy

Dominica Visitor Arrivals

Note: Energy includes Housing, Utilities, Gas & Fuels

Thousands

150.0

sector benefited from increased public

100.0

investment.

50.0

Deflationary pressures were observed in

0.0

18 Q1 18 Q2 18 Q3 18 Q4 19 Q1 19 Q2 19 Q3 19 Q4 20 Q1 20 Q2

the first half of 2020. The consumer price

Stay-overs Cruise Ship Passengers

Yacht Passengers Excursionists

index decreased by 0.7 per cent, associated

Given that the country’s borders were closed

with declines in the prices of transport

for the entire second quarter due to the

(3.2 per cent), hotels and restaurants

pandemic, the total number of visitor

(0.6 per cent) and housing, utilities, gas and

arrivals is estimated to have decreased by

fuels (0.4 per cent).

34.0 per cent to 136,273. This fall largely

reflected declines of 24.0 per cent and 58.3

Fiscal Developments

per cent in cruise ship passengers and stay-

The fiscal operations of the government

over arrivals, respectively. The largest

resulted in an overall deficit of $91.6m in

declines in the stay-over category were from

the first half of 2020, a significant

the Caribbean (66.3 per cent), Europe (48.9

improvement from one of $233.6m

per cent) and the USA (41.9 per cent).

recorded in the corresponding period of

Agriculture was the only sector to register

Similarly, a primary deficit of

2019.

an increase in value added for the first half

$71.7m was realized, up from one of

of the year. Although the pandemic resulted

$215.8m. The improvement in the fiscal

in a downturn in economic activity, it led to

balances was mainly driven by a reduction

an increase in agricultural output as the

in expenditure, which outpaced the decline

25

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