Sizeable Citizenship by Investment Inflows Helped Support Dominica's Reconstruction-led Recovery, IMF Staff Conclude
LONDON, Jan. 31, 2020 /PRNewswire/ -- The IMF was impressed with the Commonwealth of Dominica and its Citizenship by Investment (CBI) Programme inflows, as well as capacity to attract investors. CBI proved efficient in helping rebuilding the Caribbean island after the vast devastation in the wake of Hurricane Maria in 2017. IMF staff noted in their Concluding Statement on the Eastern Caribbean Currency Union (ECCU) Common Policies that the region is maintaining strong growth momentum and CBI may continue to bring positive surprises.
Furthermore, the IMF's preliminary findings suggest that, in turn, post-disaster recovery, as supported by CBI, will spur economic activity in the medium term. So will investing in tourism and agribusiness, whereas improving infrastructure will attract FDI.
"ECCU's GDP growth accelerated to 3¾ percent in 2018, reflecting buoyant tourism and sizable Citizenship-by-Investment (CBI) inflows, which helped support Dominica's reconstruction-led recovery from the 2017 hurricane," the IMF staff note. "In the near term, economic activity would be supported by further post-hurricane reconstruction, tourism investment, and some agribusiness projects."
The CBI Programme has built the foundation of a prosperous ecotourism sector in Dominica by offering carefully vetted investors who wish to obtain second citizenship the chance to own prime real estate on the island. These include a selection of luxury hotels and resorts, rooted in sustainability. Alternatively, citizenship hopefuls can make a one-off contribution to the Economic Diversification Fund, which has so far helped transform the island into a burgeoning green economy. Dominica has demonstrated incredible capacity to attract some of the most respected investors and individuals seeking a valuable citizenship that also makes tangible changes to the native population. This balance for a "global community" is what guides the Dominican CBI Programme.
The IMF staff also makes good note of Dominica's piloting of climate resilience strategies as an inspiration for more regional cooperation. In August 2019, in a publication from the Financial Times, Dominica was praised for its exemplary way of managing the CBI Programme in a transparent and accountable way. The IMF staff echo this sentiment, offering reassurance to countries providing CBI that focus on transparency and governance through financial integrity. With a staggering 9% GDP jump in 2019, specialists note that the Nature Isle of the Caribbean is a top emerging destination for both nature lovers and foreign investors.
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SOURCE CS Global Partners
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