Economics+Of+Dominca

=**Economics** =
 * =  Geography ||= History ||=  Culture ||= Political Systems ||=  Economics ||= Classroom Activities ||
 * The Dominican economy has been dependent on agriculture - primarily bananas - in years past, but increasingly has been driven by tourism as the government seeks to promote Dominica as an "ecotourism" destination. In order to diversify the island's production base, the government also is attempting to develop an offshore financial sector and has signed an agreement with the EU to develop geothermal energy resources. In 2003, the government began a comprehensive restructuring of the economy - including elimination of price controls, privatization of the state banana company, and tax increases - to address an economic and financial crisis and to meet IMF requirements. This restructuring paved the way for an economic recovery - real growth for 2006 reached a two-decade high - and helped to reduce the debt burden, which remains at about 85% of GDP. Hurricane Dean struck the island in August 2007 causing damages equivalent to 20% of GDP. In 2009, growth slowed as a result of the global recession and is projected to pick up only slightly in 2010. **

See the true story of a banana grower from Dominica!!! media type="youtube" key="U-1ooCkY8dM" width="425" height="350"

__**QUICK FACTS**__

__**Unemployment rate:**__ 23% (2000 est.) country comparison to the world:  [| 172]

__**Population Below Poverty Line:**__ 30 % AS OF 2002

__**GDP**__ $10,200 (2009 est.) country comparison to the world:  [| 106] $10,100 (2008 est.)$9,800 (2007 est.)//note:// data are in 2009 US dollars
 * Unlike many other Caribbean island nations, Dominica was never a suitable site for sugarcane cultivation, as rocky and mountainous terrain made plantation production impossible. Only about one-quarter of the island is cultivatable. Climate, fertility, and topography are favorable for tree crops, however, and Dominica has been a producer of coffee, cocoa, and citrus fruits in its history. Citrus crops are still important, being grown for export to other Caribbean islands, but the biggest share of agricultural production since the 1950s has belonged to bananas. Like St. Lucia, St. Vincent and the Grenadines, and Grenada, Dominica experienced a "banana boom" in the 1980s when it was assured access into the U.K. market. Stable prices brought modest prosperity to many banana-growing communities. During the 1970s and 1980s, banana exports from Dominica tripled in volume, peaking at 70 percent of export earnings. The dangers of this one-crop dependency became evident in 1979 and 1980 when Hurricanes David and Allen destroyed much of the banana crop. Widespread damage due to hurricanes and tropical storms has been experienced again in 1989 (Hurri-cane Hugo) and 1995, when Hurricane Luis destroyed an estimated 95 percent of banana plants. Then in November 1999, Hurricane Lenny caused considerable damage to banana and other agricultural production. Fortunately, bananas are quick to produce fruit after planting and are hence a suitable crop in hurricane-prone areas. **

Read more: [|Dominica Agriculture, Information about Agriculture in Dominica] []