Dominica, Caribbean

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Although the financial services industry is increasingly becoming its largest income, agriculture, with bananas as the principal crop, is still Dominica’s economic mainstay. Banana production employs, directly or indirectly, upwards of one-third of the workforce. This sector is highly vulnerable to weather conditions and to external events affecting commodity prices. The value of banana exports fell to less than 25% of merchandise trade earnings in 1998 compared to about 44% in 1994.

In view of the European Union’s announced phase-out of preferred access of bananas to its markets, agricultural diversification is a priority. This country has made some progress, with the export of small quantities of citrus fruits and vegetables and the introduction of coffee, patchouli, aloe vera, cut flowers, and exotic fruits such as mangoes, guavas, and papayas. This country has also had some success in increasing its manufactured exports, with soap as the primary product. Dominica also recently entered the offshore financial services market.

Because the region is mostly volcanic and has few beaches, development of tourism has been slow compared with that on neighboring islands. Nevertheless, Dominica’s high, rugged mountains, rainforests, freshwater lakes, hot springs, waterfalls, and diving spots make it an attractive destination. Cruise ship stopovers have increased following the development of modern docking and waterfront facilities in the capital. Eco-tourism also is a growing industry on the island.
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