UPP highlights concerns over IMF report on Dominica’s economic outlook

The United Progressive Party (UPP), led by Joshua Francis, has expressed serious concern following the release of the International Monetary Fund’s 2026 Article IV Mission Report on Dominica.

A recent release by the UPP takes the perspective that the report points to a country facing significant economic vulnerabilities despite recent growth.

According to the International Monetary Fund report, Dominica recorded GDP growth of 4.5% in 2025.

However, the outlook is less optimistic in the medium term, with projections indicating a slowdown to between 2% and 3% in the coming years. The report cautions that economic risks are “tilted to the downside,” highlighting continued structural weaknesses.

Among the key issues identified is Dominica’s high current account deficit, estimated at 38% of GDP, reflecting the country’s heavy reliance on imports. The UPP argues that this highlights deeper economic imbalances that remain unaddressed.

The party says it is particularly alarmed by the country’s debt situation. Public debt stands at approximately 103% of GDP—well above regional benchmarks—placing Dominica at a high risk of debt distress. The IMF has also recommended additional fiscal consolidation of EC$60 million, indicating ongoing fiscal pressures in the country.

As per the release, concerns extend to the financial sector, where the IMF report notes elevated levels of non-performing loans and insufficient regulation of the rapidly expanding credit union sector, which now accounts for more than half of private sector credit.

The IMF further points to Dominica’s continued reliance on Citizenship by Investment (CBI) revenues, raising questions about transparency and long-term sustainability, said the UPP. The party says it views this dependence as evidence of the failure of the ruling Dominica Labour Party to implement a diversified and resilient economic strategy.

Institutional challenges, including weaknesses in public financial management systems and limited fiscal transparency, were also highlighted as contributing factors to the country’s economic fragility.

“The IMF report confirms that Dominica’s economy remains fragile and exposed,” stated Joshua Francis. “We need responsible leadership, stronger governance, and a clear path toward sustainable economic growth.”

The United Progressive Party (UPP) states its vision as a call for urgent reforms to “reduce debt, create new jobs, diversify the economy, strengthen financial oversight, and improve transparency.”

According to the UPP, without bold and timely intervention, Dominica could remain stuck in a cycle of slow progress, limiting opportunities for growth and long-term economic resilience.

Meanwhile, Prime Minister Roosevelt Skerrit recently acknowledged the findings of the IMF report, stating that he respects its conclusions.

He also presented his government’s perspective on the report during a recent session of Parliament, offering context and outlining the administration’s position on the issues raised.