The IMF Country Reports Series covers economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with officials of the country, is published at the option of the member.
Dominica was struck by Hurricane Dean during August 16-17, 2007. A recent earthquake also underscores the vulnerability of the economy to natural disasters. Output growth slowed during the first half of 2007 as tourist arrivals stagnated across the region. Inflation was 31/2 percent in July, reflecting higher energy and imported food prices. Structural reforms have continued after the expiration of the poverty reduction growth facility (PRGF) arrangement. The fiscal impact of the hurricane would be largely on the expenditure side.