Destinations > Caribbean > Dominica

Dominica Economy

Flag of Dominica
 

Many consider Dominica's economic situation the most challenging of all the Eastern Caribbean states. However, Dominica's economy grew by 3.5% in 2005 and 4.0% in 2006, following a decade of poor performance. The country nearly had a financial crisis in 2003 and 2004. Growth in 2006 was attributed to gains in tourism, construction, offshore and other services, and some sub-sectors of the banana industry. The International Monetary Fund (IMF) recently praised the Government of Dominica for its successful macroeconomic reforms. The IMF also pointed out remaining challenges, including further reductions in public debt, increased financial sector regulation, and market diversification.

Bananas and other agriculture dominate Dominica's economy, and nearly one-third of the labor force works in agriculture. This sector, however, is highly vulnerable to weather conditions and to external events affecting commodity prices. In 2007, Hurricane Dean caused significant damage to the agricultural sector as well as the country's infrastructure, especially roads. In response to reduced European Union (EU) banana trade preferences, the government has diversified the agricultural sector by introducing coffee, patchouli, aloe vera, cut flowers, and exotic fruits such as mangoes, guavas, and papayas. Dominica has had some success in increasing its manufactured exports, primarily soap.

Dominica is mostly volcanic and has few beaches; therefore, tourism has developed more slowly than on neighboring islands. Nevertheless, Dominica's high, rugged mountains, rainforests, freshwater lakes, hot springs, waterfalls, and diving spots make it an attractive eco-tourism destination. Cruise ship stopovers have increased following the development of modern docking and waterfront facilities in the capital.

Dominica's currency is the Eastern Caribbean Dollar (EC$), a regional currency shared among members of the Eastern Caribbean Currency Union (ECCU). The Eastern Caribbean Central Bank (ECCB) issues the EC$, manages monetary policy, and regulates and supervises commercial banking activities in its member countries. The ECCB has kept the EC$ pegged at EC$2.7=U.S. $1.

Dominica is a beneficiary of the U.S. Caribbean Basin Initiative that grants duty-free entry into the United States for many goods. Dominica also belongs to the predominantly English-speaking Caribbean Community and Common Market (CARICOM), the CARICOM Single Market and Economy (CSME), and the Organization of Eastern Caribbean States (OECS).


Information by U.S. Department of State


Dominica Gallery

Roseau, Dominica(1) 

There is 1 picture in our Dominica gallery. Click the thumbnail to enter.




Wired Tourist Articles

Playa Del Carmen, Mexico

Playa del Carmen in Mexico may be a bed of inland deserts with a drainage basin, but it is more to people who want to take a vacation and have a good time. It is located at the lower section of an inland desert drainage basin, which sometimes fills with alkaline and briny salts that wash down by the rain water from the surrounding highlands.

« read full article »

Three Spots for a Quiet Afternoon in Paris

There are so many things to see in Paris and so little time to do it that your journey in the French capital can wind up taking the colors of a marathon run. I offer you a different take on it: stop, review your options, and decide to kill a couple of hours doing just nothing but reading a good book in a spot where you can be left to yourself. Here are three spots where you can do just that.

« read full article »


Home | Travel Destinations | Travel News | Travel Directory | Volcano Tours | Gallery