Dominica Moves to Cushion Economic Fallout from Middle East Conflict

• The Government of Dominica on Wednesday, March 25, 2026, announced a series of measures aimed at cushioning the economic impact of the ongoing Middle East conflict. Prime Minister Roosevelt Skerrit warned that rising oil prices and global supply disruptions could affect fuel, food costs, jobs, and overall economic stability, noting that while the island faces no direct military threat, it remains exposed to economic aftershocks.
• He warned that the most immediate concern for Dominica is a sharp increase in global oil prices, as the country imports all of its fuel, which will affect electricity costs, transportation, and the price of goods and services, alongside rising costs of imported food and essential supplies due to disruptions in global shipping routes and supply chains.
• The Prime Minister also cautioned that a slowdown in global travel and investment could affect tourism and capital inflows into the local economy, highlighting broader risks to economic activity beyond energy and trade channels.
• To mitigate these risks, Skerrit said the government will introduce targeted relief measures, including temporary reductions on duties and taxes for essential goods, expanded support for vulnerable households through social protection programmes, collaboration with Dominica Electricity Services to manage energy costs, and continued progress on the geothermal energy project in Laudat to reduce reliance on imported fuel and lower electricity costs over time.
• Additionally, the government will engage stakeholders across tourism, agriculture, and the private sector to protect jobs and maintain economic activity, while strengthening fiscal management by prioritising critical spending and deferring discretionary expenditures, with Skerrit urging citizens to remain calm despite potential pressure from rising prices.
• Dominica joins the Dominican Republic, Barbados, Antigua and Barbuda and Guyana, which are among the Caribbean countries that have announced relief measures for its residents in recent weeks as the US-Israeli war on Iran has caused a sharp rise in energy prices.

(Sources: Caribbean News Weekly & NCBCM Research)