Dominica Country Statistics

LOCATION

Dominica is one of the islands in the Lesser Antilles and lies 59.9 miles south of Guadeloupe and 58.2 miles north of Martinique in the Eastern Caribbean. It is the largest and most northerly of the Windward Islands.

ECONOMY

Dominica is among the countries most vulnerable to natural disasters in the Caribbean region. Over the past decade, the country has experienced significant damage from major hurricanes, including Hurricane Erika in 2015, which caused losses equivalent to approximately 96 percent of GDP, and Hurricane Maria two years later, which damaged around 90 percent of the country’s housing stock and resulted in losses estimated at 226 percent of GDP. These back-to-back shocks, followed by the COVID-19 pandemic (which led to a 16.6 percent contraction in real GDP in 2020), placed a significant strain on the economy. The country’s relatively narrow economic base, centred on agriculture and ecotourism, leaves it particularly exposed to external shocks.

In terms of economic structure, agriculture, livestock and forestry remain the largest contributors to GDP, accounting for approximately 17 percent of GDP on average between 2021 and 2025. The transport and storage sector contributed around 11 percent, while wholesale and retail trade accounted for roughly 10 percent. The construction sector, although smaller at approximately 5 percent of GDP, has played a critical role in supporting growth, driven by reconstruction projects and capital investment in climate-resilient infrastructure. By contrast, the tourism sector, as represented by accommodation and food services, accounted for an average of only 2 percent of GDP over the period, significantly lower than other jurisdictions in the Eastern Caribbean.

Following a strong post-pandemic rebound of 5.6 percent in 2022, economic growth moderated to 4.7 percent in 2023 and 3.5 percent in 2024, reflecting a normalisation in activity after the initial recovery phase. Growth strengthened to 4.5 percent in 2025, supported by robust tourism activity and continued progress on key infrastructure projects. Growth was broad-based, with notable contributions from construction, agriculture, and accommodation and related services. Construction activity remained a key driver, supported by major public projects, including the development of a new international airport, geothermal energy infrastructure, and road rehabilitation works, alongside private sector investments in tourism-related projects. These developments, together with improved airlift, supported a continued recovery in tourism. Total visitor arrivals increased by 10.6 percent year-on-year in 2025 and stood 36 percent above pre-pandemic levels, driven by a 17.5 percent increase in stay-over arrivals and a 9.1 percent rise in cruise visitors.

Government’s finances improved in 2025, with the overall fiscal deficit narrowing to 1.3 percent of GDP from 6.8 percent in 2024. This outturn was driven largely by a sharp reduction in expenditure, particularly capital spending, as large investment outlays moderated. Total expenditure declined to 55.2 percent of GDP from 67.4 percent a year earlier. At the same time, total revenue fell to 53.8 percent of GDP, reflecting lower non-tax inflows, including Citizenship by Investment (CBI) receipts. Despite the improvement in the fiscal balance, public debt remained elevated at approximately 102.6 percent of GDP.

Economic activity is expected to ease but remain positive over the medium term, with real GDP growth projected to average around 3 percent during the 2026 to 2028 period. This outlook is supported by continued investment in infrastructure, including the international airport project and the transition to geothermal energy, as well as steady improvements in tourism and agriculture. However, there are some downside risks. The country’s reliance on Citizenship by Investment (CBI) revenues remain a key vulnerability, particularly amid increased international scrutiny of such programmes. External shocks, including geopolitical tensions such as the war in the middle east and slower growth in key source markets, could weigh on tourism activity and contribute to imported inflation. In addition, the persistent threat of natural disasters remains a key vulnerability, with the potential to disrupt economic activity and place additional strain on public finances.