Economy Expected to Grow in New Financial Year

vlcsnap-2013-07-24-15h56m49s52During the 2013 to 2014 National Budget Presentation which took place on Wednesday July 24th, Prime Minister Honourable Roosevelt is projecting a slight growth in Dominica’s economy although there will be no new taxes.

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Prime Minister Honourable Roosevelt

Mr. Skerrit said, GDP estimates indicate Dominica’s economy recorded -0.1 percent growth in 2012 which is not in line with Government’s projections, however the economy is projected to grow by 1.6 percent in 2013 and possibly 1.7 percent in 2014.

“In 2012 agricultural production accounted for 12.7 percent of total GDP with an overall increase of 7.5 percent, while positive growth was recorded in all sub-sectors with the exception of bananas which saw 23.5 percent reduction in production,” he explained.

Mr. Skerrit noted that, positive growth rates in all other sub-sectors will keep the sector on a positive growth trend, which could see a 1.3 percent in increase in the agricultural section in 2013 supported by a turnaround in the banana sub-sector, which is expected to increase by 3.1 percent.

The prime minister is also expecting a growth of 1.5 percent in 2013 in the tourism industry, taking into consideration an increase in tourism arrivals, the introduction of new cruise ship calls as well as new business that is expected in the tourism sector.

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Speaker of the House, Alix Boyd Knight

“The reliability of air transportation is expected to be an added advantage to travelers as LIAT continues its re-fleeting exercise, it is also anticipated that tourism spending will increase with the improvement in the economies of the source markets”.

He is projecting a turnaround in the construction industry as private sector activity and new public sector infrastructure project come on stream, resulting in an estimated 7.1 percent growth.

Mr. Skerrit also pointed out that, the education sector accounted for 13.7 percent of GDP in 2012, a slight increase from 12.7 percent in 2011, however there is growth of 7.1 percent in that sector which he said is due to an increase in enrollment in the private education sub-sector adding to 1 percent increase in 2013.

He added growth is also expected in the banks, credit unions and insurance sectors by 1.7 percent.

This year’s budget was on the theme “Building on the gains we have made.”

© 2012 SAT Telecommunications Ltd.

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