Dominica profile

Demography and Health

Dominica is a small island nation with a total population of about 66,205 people in 2024, placing it among the world’s least populous countries. The demographic profile reveals a natural decrease in the population: the crude birth rate stands at 11.1 births per 1,000 people (2023) while the crude death rate is higher, at 12.8 deaths per 1,000 people (2023). This natural decline is only partly offset by net positive migration in most contexts, but in Dominica data for 2024 show a net outflow of 200 people, underscoring pressures on the domestic labor supply and potentially aging the population over time if outward migration continues. Life expectancy at birth is 71.1 years (2023), reflecting health outcomes that are solid for a small developing economy but leaving room for improvements, particularly in child health indicators. The under-5 mortality rate is 35.5 per 1,000 live births (2023), which signals meaningful challenges in child health and preventive care that could benefit from targeted maternal and child health initiatives and primary care strengthening. Health system capacity appears modest: hospital beds are 2.98 per 1,000 people (2021), suggesting limited inpatient capacity for a population that experiences non-negligible child and maternal health demands, chronic diseases, and disaster-related injuries common to island settings. Average health spending is 6.32% of GDP (2022), with domestic public health expenditure per capita (PPP) of 664 international US$ (2022), indicating a public finance envelope that must balance broad health needs with fiscal constraints. The population’s connectivity is a strength for health delivery and information: 83.8% of residents used the Internet in 2023, supporting telemedicine, health education, and remote monitoring where geographic access to care can be difficult. Overall, Dominica’s demography shows a small, aging-leaning population with natural decrease, constrained health capacity, and a relatively enabling digital environment that could be leveraged to improve health outcomes and resilience against shocks.

Economy

Dominica’s economic indicators point to a small, service-oriented economy with a modest standard of living. GDP per capita in current US$ is 10,405 (2024), while GDP per capita at PPP is 21,301 international US$ (2024), implying that the country has a cost of living that, when measured by PPP, allows a higher relative purchasing power than nominal GDP figures alone would suggest. Inflation is contained at 2.59% (2024), indicative of price stability that supports consumer confidence and investment planning. The external sector shows a sizable current account deficit, with the balance at -23.2% of GDP (2024), signaling substantial reliance on external financing to fund imports and services, and implying vulnerability to global capital and commodity price shifts. Foreign direct investment net inflows amount to 5.34% of GDP (2024), reflecting a moderate inflow of foreign capital that can support growth in sectors such as tourism, infrastructure, or services, while also signaling room to diversify investment sources and improve the investment climate. The economy’s export composition includes high-technology exports valued at 367,176 current US$ (2023); in the context of Dominica’s size, this absolute figure is relatively small, suggesting that advanced manufacturing exports play a limited role in the mix, with tourism, agriculture, and services likely remaining dominant. The combination of a stable macroeconomic environment (low inflation) with a substantial current account deficit and moderate FDI underscores the importance of prudent fiscal policy, export diversification, and resilience-building to withstand external shocks. The health of the domestic market is affected by population dynamics and migration, as well as the capacity to convert natural assets and human capital into diversified growth. In sum, Dominica’s economy shows solid purchasing power on a PPP basis and stable price dynamics, but faces a sizable external financing requirement and a narrow export base that calls for ongoing structural reforms and investment in productivity-enhancing sectors.

Trade and Investment

Trade and investment in Dominica are characterized by a small, open economy with modest but meaningful foreign investment and a dependency on external financing. The net inflow of foreign direct investment equals 5.34% of GDP in 2024, indicating that foreign capital is playing a role in supporting investment projects and potentially helping to finance infrastructure, services, and technology adoption. The country’s current account deficit of 23.2% of GDP highlights a reliance on external capital and financing to fund imports and services, which can be a vulnerability in periods of global financial tightening or shifts in commodity prices. The data show that Dominica has some engagement with high-technology exports (367,176 current US$ in 2023), but the absolute amount is small in global terms, consistent with a compact economy where traditional sectors such as services (including tourism), agriculture, and public administration remain central. Governance indicators contextualize the investment climate: regulatory quality is 0.308 (rank 73), rule of law is 0.625 (rank 54), and control of corruption is 0.545 (rank 58). Political stability and absence of violence/terrorism score 1.29 (rank 9) suggest a relatively stable political environment that can support investment planning, while middling regulatory quality and government effectiveness indicate that there is room to streamline business processes and reduce bureaucratic friction. The combination of political stability, a modest but existing FDI flow, and digital connectivity (high internet use) provides a foundation for expanding trade and attracting foreign investment, particularly in services, tourism-enabled experiences, and niche high-value activities. However, the sector remains constrained by the small scale of the economy and a dependence on external financing, underscoring the need for targeted reforms to improve investment climate, diversify the export base, and strengthen trade facilitation.

Governance and Institutions

Dominica’s governance profile presents a nuanced picture. Political stability and absence of violence/terrorism stand out with a score of 1.29 in 2023, ranking 9, indicating a relatively stable political environment and policy continuity that can reassure investors and citizens alike. Regulatory quality, at 0.308 (2023, rank 73), suggests moderate ability to formulate and implement sound regulatory policies, while the rule of law score of 0.625 (rank 54) implies a reasonably functioning legal framework for contracts and dispute resolution, albeit with room for strengthening enforcement and judicial efficiency. Control of corruption sits at 0.545 (rank 58), pointing to mid-level efficacy in curbing corruption, which remains a critical area for improving business confidence and governance legitimacy. Government effectiveness is 0.261 (rank 72), indicating that public sector performance could benefit from reforms to service delivery and policy implementation. Taken together, the governance indicators describe a country with political stability and a relatively credible rule of law, but with middling regulatory quality and public administration performance. This combination can support a stable operating environment for investors, while highlighting areas—such as regulatory efficiency, public sector reform, and anti-corruption measures—where reforms could yield dividends for economic diversification, private sector growth, and public service delivery.

Infrastructure and Technology

Infrastructure and technology in Dominica reflect a small-island development profile with a blend of basic and growing digital capabilities. The health infrastructure offers hospital beds at 2.98 per 1,000 people (2021), indicating limited inpatient capacity in relation to a small population, which is a common constraint for remote or dispersed communities. On the digital side, 83.8% of the population uses the Internet (2023), signaling strong connectivity that can underpin e-government, digital health services, online education, and e-commerce. The energy mix shows renewable energy consumption at 8.9% of total final energy consumption (2022), suggesting that the country relies predominantly on conventional energy sources but is making progress toward cleaner energy use. Life expectancy of 71.1 years (2023) and current health expenditure levels reflect a health system that provides essential services while leaving space for efficiency gains and expanded coverage. The per-capita health expenditure in PPP terms (664 international US$ in 2022) points to a moderate public health budget that could be leveraged for targeted investments in primary care and preventive services. The environmental footprint measured as total greenhouse gas emissions per capita is 2.21 t CO2e (2023), which is relatively modest, consistent with a small, energy-importing economy with limited industrial activity. The presence of high-technology exports, albeit at a small absolute scale (367,176 current US$ in 2023), indicates some capacity for more advanced manufacturing and innovative activities, but the dominant reality remains a services- and tourism-driven economy with a developing technological backbone. Overall, Dominica’s infrastructure and technology landscape is characterized by robust digital connectivity, improving though still modest renewable energy usage, constrained health infrastructure relative to population, and opportunities to further leverage technology to enhance service delivery, economic diversification, and resilience to climate and health shocks.

Environment and Sustainability

Environmental and sustainability indicators reveal a country with modest reliance on renewable energy and manageable water resources, alongside emissions that remain comparatively low on a per-capita basis. Renewable energy consumption accounts for 8.9% of total final energy consumption (2022), implying considerable potential to expand renewables as a share of energy supply, reduce import dependence, and increase climate resilience. The level of water stress, defined as freshwater withdrawal as a proportion of available freshwater resources, sits at 10.0% (2021), indicating that Dominica’s freshwater resources are not currently over-stressed relative to many other regions, though continued population growth, tourism demand, and climate variability could raise risks if water management is not strengthened. Total greenhouse gas emissions excluding LULUCF per capita are 2.21 t CO2e (2023), pointing to relatively low emissions intensity consistent with a small, service- and nature-based economy with limited heavy industry. The current health and development trajectory is further supported by moderate rainfall resilience and a dependence on sustainable management of natural assets, which are critical for tourism and agriculture—the backbone of many Caribbean economies. The data collectively portray a country with a modest environmental footprint that also faces exposure to climate hazards typical of island states, underscoring the importance of expanding renewable energy, improving water management, and investing in climate adaptation strategies to safeguard communities and livelihoods while pursuing sustainable growth.