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Western Hemisphere > Dominica

You are looking at 1 - 10 of 22 items for :

  • Type: Journal Issue x
  • National Government Expenditures and Related Policies: Infrastructures; Other Public Investment and Capital Stock x
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Cover IMF Working Papers
The Macroeconomic Returns of Investment in Resilience to Natural Disasters under Climate Change: A DSGE Approach
Emilio Fernández Corugedo
,
Andres Gonzalez
, and
Mr. Alejandro D Guerson
This paper presents a Markov switching dynamic stochastic general equilibrium model designed to evaluate the macroeconomic return of adaptation investment to natural disasters (NDs) and the impact of climate change. While the model follows the existing literature in assuming that NDs destroy a share of the public and private capital stocks and a government that can invest in adaptation at an additional cost, it adds several features that are key to the analysis, both in the near (transition) and long (steady state) terms. Those include incomplete markets, financial frictions with collateral constraints, foreign remittances, full menu of tax and government spending instruments, and endogenous climate risk premium. The model is calibrated to the case of Dominica. It finds that NDs have large and persistent negative effects on output and public finances. It also shows that adaptation investment has large returns in terms of private investment, employment, output and tax revenue in the long term, especially under climate change.
Keywords:
natural disasters; climate change; DSGE; resilient capital; financial frictions; Dominica; climate adaptation policies; adaptation investment; investment producer; government spending instrument; endogenous climate risk premium; ND event; moment calibration summary; Consumption; Return on investment; Caribbean; Global
Cover IMF Staff Country Reports
Dominica: 2021 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Dominica
International Monetary Fund. Western Hemisphere Dept.
Dominica has been hit hard by the Covid-19 pandemic, with an estimated decline in GDP of 11 percent in 2020 underpinned by a sharp reduction in tourism receipts that affected connected sectors and by lockdown measures to limit virus contagion. The output decline was contained by health spending, social transfers, and public investment resilient to natural disasters which increased significantly, leading to an increase in public debt to 106 percent of GDP despite record-high Citizenship-by-Investment (CBI) revenue. The financial sector remained stable and liquid, but vulnerability continue to be significant in the under-capitalized non-bank sector.
Keywords:
CBI revenue; authorities of Dominica; authorities' effort; pandemic well; response to the pandemic; Natural disasters; Public investment spending; COVID-19; Caribbean; Global
Cover IMF Working Papers
Strengthening Public Investment Management in the Eastern Caribbean Currency Union: Getting more bang for the dollar!
Mr. A. E. Wayne Mitchell
,
Ann Marie Wickham
, and
Mr. Manuel Rosales Torres
The quality and stock of infrastructure vary widely across countries of the Eastern Carribbean Currency Union and are inadequate to achieve the desired higher growth and social development. Given relatively low investment rates in the region, one solution is to invest more. However this paper shows that governments can also narrow their infrastructure and service gaps significantly by improving expenditure efficiency and strengthening public investment management systems.
Keywords:
WP; investment; ECCU country; cost; physical capital; ECCU member government; efficiency gap; investment planning; private sector; ICT system; government spending; ECCU member country; Infrastructure; Public investment and public-private partnerships (PPP); Public investment spending; Capital spending; Caribbean; Expenditure Efficiency; Public Investment Management
Cover IMF Staff Country Reports
Dominica: Selected Issues
International Monetary Fund. Western Hemisphere Dept.
This Selected Issues paper presents a proposal for the creation of savings funds (SF) for rehabilitation and reconstruction after natural disasters (ND) in Dominica. A Monte Carlo experiment is used to calibrate the size of the SF, based on the distribution of ND fiscal shocks estimated from an empirical fiscal model. ND shocks are identified by controlling for other major sources of shock affecting the cyclical fluctuations of output, and government revenue and expenditure, and by calibrating the probability of ND consistent with their historical frequency. It is concluded that under the parameter calibrations proposed, the SF would be financially sustainable with a low probability of depletion.
Keywords:
ISCR; CR; credit union; Dominica; tropical cyclone; tropical cyclone damage; deposit; climate change cost; estimating hurricane; tropical cyclone disaster; credit union sector; Credit bureaus; Natural disasters; Standing facilities; Commercial banks; Caribbean
Cover IMF Staff Country Reports
St. Lucia: 2015 Article IV Consultation-Press Release; and Staff Report
International Monetary Fund. Western Hemisphere Dept.
A moderate economic recovery is taking hold in St. Lucia. Favorable international conditions have contributed to improved demand for tourism, St. Lucia’s main economic sector, and the external current account deficit has narrowed significantly. The authorities have made some progress in addressing a weak fiscal position. However, the financial sector continues to be impaired by nonperforming loans, public debt keeps rising, and unemployment remains very high, while external sector competitiveness continues to be weakened by an overvalued exchange rate, economies of scale disadvantages, and structural bottlenecks.
Keywords:
ISCR; CR; tourism inflow; balance of payments; private sector; fiscal year; economic activity; debt target; reform agenda; youth unemployment; excess reserves; growth prospect; Capital spending; Fiscal stance; Natural disasters; Caribbean; Global
Cover IMF Staff Country Reports
Dominica: Request for Disbursement Under the Rapid Credit Facility-Press Release; Staff Report; for Dominica
International Monetary Fund. Western Hemisphere Dept.
This paper discusses Dominica’s Request for Disbursement Under the Rapid Credit Facility (RCF). Tropical Storm Erika had a devastating effect on Dominica’s economy. Total damage and loss is estimated at 96 percent of GDP. Real GDP is projected to decline by 3 percent in 2015, and reconstruction expenditures and the impact on agriculture and tourism activities are putting pressure on the fiscal and external accounts. Despite the high capital expenditures, the 2015 budget deficit will be contained to 2.4 percent of GDP reflecting strong grants, and the current account balance could deteriorate to a deficit of about 15 percent of GDP. The IMF staff supports the authorities’ request for a disbursement under the RCF.
Keywords:
ISCR; CR; balance of payments position; fiscal policy framework; RCF financing; balance of payments difficulty; market price; IMF staff estimate; Capital spending; Credit; Public sector; Caribbean; Global
Cover IMF Working Papers
Too Much of a Good Thing? Prudent Management of Inflows under Economic Citizenship Programs
Ms. Xin C Xu
,
Ahmed El-Ashram
, and
Judith Gold
Economic Citizenship Programs (ECPs) have recently been proliferating, with large and potentially volatile inflows of investment and fiscal revenues generating significant benefits for small economies, but also posing substantial challenges. This paper discusses recent developments and implications of such programs for fiscal discipline and the real economy, including risks to macroeconomic and financial stability, with a focus on small state economies. It discusses the prudent management of these programs, overviews strategies to minimize risks to various sectors, and addresses potential governance and integrity challenges. The paper proposes a framework for managing inflows and savings from ECPs to contain macroeconomic risks, and it recommends the establishment of a sovereign wealth fund (SWF) where such revenues are large and persistent.
Keywords:
WP; ECP inflow; central bank; country authorities; management framework; ECP country; ECP flow; ECP receipt; ECP resource; private sector; Economic Citizenship Programs; Citizenship-by-Investment; Economic Residency Programs; Immigrant Investor Programs; Golden Visa; Sovereign Wealth Fund (SWF); National Development Funds; Macroeconomic Stability; Dutch Disease; St. Kitts and Nevis; Pacific Island Countries; investment strategy; SWF investment; stabilization fund; Public investment spending; Fiscal stance; Global; Pacific Islands; Caribbean
Cover IMF Staff Country Reports
St. Vincent and the Grenadines: Staff Report for the 2012 Article IV Consultation
International Monetary Fund. Western Hemisphere Dept.
KEY ISSUES Background: Activity is slowly recovering after a cumulative decline of about 5 percent during 2008–10. Expansionary fiscal policies—largely to counteract the impact of the global slowdown and the two successive natural disasters—led to a deterioration in fiscal balances, with public debt up by about 10½ percent of GDP over this period. The fiscal deficit, however, is expected to narrow this year, largely reflecting cuts in capital spending. In the financial sector, non performing loans remain above prudential guidelines; provisioning and profitability are low; and supervision remains weak. Policy Challenges: Further fiscal consolidation—including by rebalancing government expenditure toward growth and employment generating public sector projects—is required to ensure medium-term sustained growth as well as keep public sector debt on a downward trajectory. In this regard, improving the efficiency of revenue collection and reducing current spending—especially on the wage bill, which is high relative to revenues—will be crucial to allow the government to maneuver fiscal policy. Financial sector weaknesses also need to be addressed, including through strengthening of supervisory and regulatory standards, to promote effective financial intermediation that supports private sector growth. Structural reforms, including infrastructure enhancements and labor market reforms are critical to improve competitiveness and ensure medium-term growth and current account sustainability.
Keywords:
ISCR; CR; current account; debt; deficit; real GDP; private sector credit growth; debt service; broad money; flows shock; economy of St. Vincent and the Grenadines; Financial sector; Capital spending; Caribbean; Global; North America; Northern Europe
Cover IMF Staff Country Reports
St. Vincent and the Grenadines: Request for Disbursement Under the Rapid Credit Facility
International Monetary Fund
The Executive Board of the IMF has approved a disbursement of an amount equivalent to SDR 2.075 million under the Rapid Credit Facility for St. Vincent and the Grenadines to help the country manage the economic impact of Hurricane Tomas. The Board’s approval enables the immediate disbursement of the full amount. The late-October 2010 hurricane inflicted significant damage to agriculture, housing, and infrastructure. The initial assessment conducted by the government estimated the cost of damage at 5 percent of gross domestic product.
Keywords:
ISCR; CR; credit facility informational annex; facility; debt; balance of payments difficulty; GDP; disbursement of an amount equivalent; facility informational annex; discussion of St. Vincent and the Grenadines; Fiscal stance; Natural disasters; Public and publicly-guaranteed external debt; Caribbean; North America; Northern Europe; Global
Cover IMF Staff Country Reports
St. Vincent and the Grenadines: 2007 Article IV Consultation: Staff Report; Staff Supplement and Statement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for St. Vincent and the Grenadines
International Monetary Fund
This 2007 Article IV Consultation highlights that the economy of St. Vincent and the Grenadines is enjoying its second year of vigorous economic growth. Financial sector indicators have strengthened, but balance sheet vulnerabilities remain. Executive Directors have welcomed St. Vincent and the Grenadines’ recent strong macroeconomic performance, marked by robust economic growth, fiscal consolidation, and declining debt levels. Directors have also stressed that continued fiscal consolidation is needed to lower the public debt-to-GDP ratio, and create room to raise social spending.
Keywords:
ISCR; CR; debt; staff estimate column; budget; NPV; estimate; authorities of St. Vincent and the Grenadines; budget assumption; fund staff estimate; grant receipt; Capital spending; Debt service; Caribbean; Global