June 2020 Economic and Financial Review

June 2020 Economic and Financial Review THE COMMONWEALTH OF DOMINICA

in revenue caused by the COVID19

$117.6m in non-tax revenue, as the

pandemic, particularly in the second quarter

Economic Citizenship Programme receipts,

of the year. Capital expenditure decreased

which constitutes the largest proportion of

by 71.9 per cent, as ongoing projects were

non-tax revenue, declined. Simultaneously,

temporarily stalled due to lockdown and

current expenditure fell by 13.7 per cent to

$324.2m, mainly by a decrease in transfers

Dominica Public Finance

EC$M

300.0

and subsidies (48.0 per cent).

250.0

200.0

150.0

Banking Sector Developments

100.0

Dominica Monetary Survey Percentage Change

50.0

(M2) %

(NFA)%

0.0

-50.0

-10.0 -8.0 -6.0 -4.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0

10.0

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

5.0

Recurrent Revenue Recurrent Expenditure Current Account Balance

0.0

curfew restrictions.

-5.0

-10.0

On the current account, the deficit

-15.0

19 Q1

19 Q2

19 Q3

19 Q4

20 Q1

20 Q2

deteriorated to $47.8m as current revenue

Money Supply (M2)

Net Foreign Assets

decreased by 25.2 per cent to $276.4m. The

Monetary Liabilities (M2) decreased by

decline was largely influenced by a 29.5 per

13.5 per cent to $1,361.0m in the first six

cent contraction in tax revenue, mainly

This development was

months of 2020.

driven by a 26.7 per cent fall in taxes on

mainly attributable to declines in quasi

domestic goods and services. Also

money and narrow money. Domestic claims

contributing to the deterioration in current

declined by 1.6 per cent, as the net claims to

revenue was a decline of 18.4 per cent to

general government fell (69.7 per cent).

26