Growth In Dominica To Slow As Post-Hurricane Reconstruction Wanes

• Real GDP growth in Dominica will decelerate over the coming quarters as the boost to economic activity from the post-2017 hurricane reconstruction wears off.
• Nevertheless, Fitch Solutions, has revised up its 2020 and 2021 real GDP growth forecasts to 2.4% y-o-y and 2.1%, respectively, from 1.9% previously, due to stronger–than-expected tourism growth and a more favorable global economic background.
• Over the long term, Dominica’s growth outlook is weak given that the government’s growing debt burden will limit the ability of the government to support growth and crowd out private investment.

(Source: Fitch)