Economy of Dominica

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Economy of Dominica

Currency	East Caribbean Dollar
Fiscal year	1 July - 30 June
Trade organisations	WTO, CARICOM
Statistics
GDP	$0.533 billion (nominal, 2018 est.)[1] $0.763 billion (PPP, 2018 est.)[1]
GDP growth	0.5% (2018) 9.6% (2019e) −4.0% (2020f) 4.0% (2021f)[2]
GDP per capita	$7,542 (nominal, 2011 est.)[1] $10,787 (PPP, 2018 est.)[1]
GDP by sector	agriculture (15.7%), industry (15.6%), services (68.7%) (2013[update])
Inflation (CPI)	1.359% (2018)[1]
Population below poverty line	29% (2009[update])
Labour force	25,000 (2000[update])
Labour force by occupation	agriculture 40%, industry 32%, services 28% (2002[update])
Unemployment	23% (2000[update])
Main industries	soap, coconut oil, tourism, copra, furniture, cement blocks, shoes
External
Exports	$160 million (2018 est.[update])[3]
Export goods	medical instruments, pharmaceuticals, low-voltage protection equipment, tropical fruits, bandages
Main export partners	Bahamas 12%  Guyana 7.72%  Antigua and Barbuda 7.09%  Dominican Republic 6.71%  Barbados 6.43% (2022)[4]
Imports	$430 million (2018 est.[update])[3]
Import goods	refined petroleum, natural gas, crude petroleum, recreational boats, cars
Main import partners	United States 51%  China 8.65% (2022)[5]
Gross external debt	274.9 million (2013[update])
Public finances
Revenues	$148.1 million (2013[update])
Expenses	$185.2 million (2013[update])
Foreign reserves	$90 million (31 December 2013 est.)[3]
All values, unless otherwise stated, are in US dollars.

The economy of Dominica is reliant upon agriculture, particularly bananas, with the financial services industry and passport sales^[6] becoming increasingly the island's largest source of income. Banana production employs, directly or indirectly, upwards of one-third of the work force. This sector is highly vulnerable to weather conditions and to external events affecting commodity prices. The value of banana exports fell to less than 25% of merchandise trade earnings in 1998 compared to about 44% in 1994.

In view of the European Union's announced phase-out of preferred access of bananas to its markets, agricultural diversification is a priority. Dominica has made some progress, with the export of small quantities of citrus fruits and vegetables and the introduction of coffee, patchouli, aloe vera, cut flowers, and exotic fruits such as mangoes, guavas, and papayas. Dominica has also had some success in increasing its manufactured exports, with soap as the primary product. Dominica also recently entered the offshore financial services market.

Because Dominica is mostly volcanic and has few beaches, development of tourism has been slow compared with that on neighboring islands. Nevertheless, Dominica's high, rugged mountains, rainforests, freshwater lakes, hot springs, waterfalls, and diving spots make it an attractive destination. Cruise ship stopovers have increased following the development of modern docking and waterfront facilities in the capital. Eco-tourism also is a growing industry on the island.

Dominica is a member of the Eastern Caribbean Currency Union (ECCU). The Eastern Caribbean Central Bank (ECCB) issues a common currency (the East Caribbean dollar) to all eight members of the ECCU. The ECCB also manages monetary policy, and regulates and supervises commercial banking activities in its member countries. Dominica is a beneficiary of the U.S. Caribbean Basin Initiative (CBI). Its 1996 exports to the U.S. were $7.7 million, and its U.S. imports were $34 million. Dominica is also a member of the 15-member Caribbean Community (CARICOM) and of the Organisation of Eastern Caribbean States (OECS).