Dominica : 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Dominica

After tropical storm Erika in August 2015, the government has focused on infrastructure rehabilitation, social support, and the identification of financing for reconstruction. The approval of a disbursement under the RCF (SDR 6.15 million) in October 2015 has supported immediate financing needs while providing time to specify measures consistent with the fiscal consolidation targets committed to restore fiscal sustainability. Measures already passed and planned for the FY2016/17 budget are in line with the authorities' commitment during the RCF discussions. The storm has worsened long-standing competitiveness and fiscal sustainability problems. The difficulties related to restraining public wage expenditures and executing public investment further compound these challenges.