The economy of Dominica is largely dependent on agriculture and tourism. The island nation is known for its lush tropical rainforests, unspoiled beaches and majestic mountain ranges, making it a popular destination for tourists from around the world. Agriculture is also an important part of the economy, with bananas, citrus fruits, coffee and cocoa being the main crops grown on the island.
According to cheeroutdoor, the primary sector of Dominica’s economy accounts for around 20% of GDP and employs nearly one-third of the population. The majority of this activity comes from banana production which has been historically important to Dominica, though recently other agricultural products such as citrus fruits have become increasingly important. The secondary sector is much less developed than in other Caribbean countries but still contributes around 10% to GDP with manufacturing activities such as soap production and rum distilling being significant sources of income for many people on the island.
The tertiary sector is by far the largest contributor to GDP with over 70% coming from services such as tourism which has become increasingly important in recent years due to its popularity among international visitors. Other services include banking and financial services, telecommunications, government services and transportation which all help to drive the economy forward.
Dominica’s government has made a concerted effort to diversify its economy away from just relying on agriculture and tourism by encouraging foreign investment in renewable energy projects such as wind farms and geothermal power plants. This has helped to create new jobs in these industries while reducing dependence on imported fossil fuels which are becoming increasingly expensive due to rising global prices.
In addition, Dominica has also taken steps towards improving its infrastructure by investing in road networks and ports so that goods can be easily transported between islands or exported overseas if needed. This will help boost economic growth by increasing trade opportunities both domestically and internationally while also creating new job opportunities within these sectors as well as improving living standards across the country overall.
Overall, despite its small size Dominica’s economy is growing steadily thanks largely to increased investments in renewable energy projects as well as improved infrastructure development across the country which have allowed it to become more competitive globally while also providing much needed job opportunities for citizens at home. With continued investment into these areas – it appears likely that this small Caribbean nation could soon become an economic powerhouse within its region that will bring great benefits not only domestically but also internationally too.
Abbreviated as DMA by abbreviationfinder.org, Dominica is one of the poorest countries in the Caribbean. The country experienced relatively strong GDP growth through the 1980s, but has from time to time been hit by economic setbacks following devastating hurricanes. During the 1990s, GDP per capita increased by around 0.8 per cent annually. Uncertainty about Dominica’s access to the European market contributed to lower productivity around the turn of the millennium, and in 2002 the country faced an economic crisis. From 2002 to 2013, GDP increased by about 50 percent.
More than half of the working population is employed in the service industries, which together contributed 64 per cent of GDP in 2002. The tourism industry is an important and growing part of the economy. The vast majority of tourists arrive via cruise ships. In 1990, under 7,000 tourists arrived via cruise ships; by the end of the decade and the beginning of the 2000s, the number has increased to over 200,000. In recent years, special attention has been paid to promoting ecotourism. Offshore is also indicated as a main focus area.
About 75 percent of the electrical energy produced comes from diesel generators. Hydropower was previously the dominant source of energy, but now accounts for only between 20 and 28 percent, depending on rainfall. The country has large hydropower resources that have not been utilized. Investments in hydroelectric power plants and water supply are partly financed by the export of water to poorer islands in the Caribbean, such as Aruba.
Agriculture and fishing
Agriculture is the most important industry and contributes (together with less fishing) to 17 percent of GDP (2002). Bananas have been by far the most important export product, but banana exports (which went almost entirely to the UK) were heavily influenced by the opening of the European market in 1993 for significantly cheaper banana imports from Central America. In order to reduce the dependence on bananas, the authorities have encouraged more varied production, and the main products are now in addition to bananas, coconuts (used for the production of soap and cooking oil), mangoes, avocados, papaya, citrus fruits and ginger. Some animal husbandry. Shrimp farming and other aquaculture are among the industries that have shown growth potential.
The industry is based on the processing of agricultural products and is mainly run by small and medium-sized companies. In 2002, the industry contributed about 20 per cent of GDP and employed about the same proportion of the working population.
Dominica has a deficit on both the trade balance and the balance of payments abroad. Major trading countries are Jamaica, the United Kingdom, the United States and Trinidad and Tobago. The main export goods are bananas and soap. Important import goods are machinery and transport equipment, paper and food products.
- COUNTRYAAH: Find major trading partners of Dominica, including major exports and major imports with latest trade value and market share as well as growth rate.
Transport and Communications
Dominica has a relatively well-developed road network. Dominica has two local airports (Canefield just outside Roseau as well as Melville Hall 64 km from Roseau) that connect the island with neighboring islands. There is also fast boat connection with Guadeloupe and Martinique. The deep water port near Roseau serves foreign trade and visitor cruise ships. A new cruise port has been built in Cabrits National Park at Prince Rupert Bay north of the island.
Note: the capital city of Dominica is Roseau with a population of 13,600 (estimate 2009). Other major cities include Canefield (3,360), Portsmouth (3,270), Marigot (2,670) (Estimate 2009).