Dominica: 2026 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Dominica

The 2026 Article IV Consultation discusses that Dominica faces persistent fiscal and external imbalances, high public debt, and significant vulnerabilities arising from natural disasters, a narrow economic base, and heavy reliance on citizenship-by-investment (CBI) revenues. Although growth has been supported by large infrastructure projects, medium-term growth is projected to moderate, while inflation and current account pressures are expected to gradually ease. Public debt is forecast to decline only slowly, remaining above the regional benchmark amid risks from geopolitical tensions, uncertain CBI inflows, and climate-related shocks. Strengthening fiscal resilience requires broader domestic revenue mobilization, more efficient public spending, and prioritization of high-return investments to reduce debt vulnerabilities. Financial sector reforms should enhance credit intermediation through stronger regulation and oversight of credit unions. Structural reforms aimed at improving trade connectivity, digitalization, education and skills development, and institutional capacity are essential to boost productivity, competitiveness, and long-term resilience. Enhanced fiscal governance and stronger economic data systems would further improve policy effectiveness, transparency, and sustainable economic growth.