2018 Index of Economic Freedom


overall score64.5
world rank66
Rule of Law

Property Rights48.6

Government Integrity49.9

Judicial Effectiveness69.2

Government Size

Government Spending64.8

Tax Burden72.9

Fiscal Health85.2

Regulatory Efficiency

Business Freedom71.7

Labor Freedom57.7

Monetary Freedom86.6

Open Markets

Trade Freedom62.6

Investment Freedom75.0

Financial Freedom30.0

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See how Dominica compares to another country using any of the measures in the Index.

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Quick Facts
  • Population:
    • 0.1 million
  • GDP (PPP):
    • $0.8 billion
    • -4.3% growth
    • 0.5% 5-year compound annual growth
    • $11,375 per capita
  • Unemployment:
  • Inflation (CPI):
    • 0.0%
  • FDI Inflow:
    • $31.4 million
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Dominica’s economic freedom score is 64.5, making its economy the 66th freest in the 2018 Index. Its overall score has increased by 0.8 point, with significant improvements in fiscal health, government integrity, and property rights outpacing lower scores for the trade freedom and monetary freedom indicators. Dominica is ranked 13th among 32 countries in the Americas region, and its overall score is above the regional and world averages.

Recovery from the extensive damage caused by Hurricane Maria will test the strength and resilience of Dominica’s economy. Reconstruction of a country where the efficiency of government services has been poor will require heavy public spending and external aid. The fact that gradual reform has improved the overall investment framework should help the rebuilding process. The independent legal system generally adjudicates business disputes effectively and encourages a relatively low level of corruption, sustaining judicial effectiveness and government integrity.



Dominica is a member of the Organization of Eastern Caribbean States (OECS). Prime Minister Roosevelt Skerrit of the Dominica Labour Party took office in 2004 and was reelected in 2009 and again in 2014. He has struggled to survive politically after allegations of involvement in money laundering and sales of Dominican passports of convenience to Russians, Chinese, and Iranians. The economy historically has depended on agriculture, primarily bananas, but the government is also promoting ecotourism. Other diversification efforts include offshore medical education and encouraging investments in such agricultural exports as coffee, patchouli, aloe vera, exotic fruits, and cut flowers. The devastation caused in September 2017 by Hurricane Maria presents both severe challenges and opportunities for reform.

Rule of LawView Methodology

Property Rights 48.6 Create a Graph using this measurement

Government Integrity 49.9 Create a Graph using this measurement

Judicial Effectiveness 69.2 Create a Graph using this measurement

Private property rights have been generally well protected, although pirated copyrighted material is sold openly. Dominica has an independent but short-staffed judiciary based on English common law. The government shows no obvious or blatant signs of corruption, but anticorruption statutes are not always implemented effectively. Nonbank financial institutions are monitored to combat money laundering and terrorist financing.

Government SizeView Methodology

The top individual income tax rate is 35 percent, and the top corporate tax rate is 30 percent. Other taxes include value-added and environmental taxes. The overall tax burden equals 24.1 percent of total domestic income. Over the past three years, government spending has amounted to 34.2 percent of total output (GDP), and budget deficits have averaged 1.0 percent of GDP. Public debt is equivalent to 81.0 percent of GDP.

Regulatory EfficiencyView Methodology

Obtaining construction permits, electricity, and credit remains challenging, but the current government remains committed to creating a vibrant business climate. The nonsalary cost of employing a worker is moderate, but the labor market lacks flexibility in other areas. Massive government subsidies to reconstruct the power grid and other infrastructure are the inevitable result of devastating hurricane damage.

Open MarketsView Methodology

Trade is significant for Dominica’s economy; the combined value of exports and imports equals 96 percent of GDP. The average applied tariff rate is 13.7 percent. Nontariff barriers impede some trade. In general, government policies do not significantly interfere with foreign investment. The financial sector remains underdeveloped. Shallow markets and a lack of available financial instruments restrict overall access to credit.

Country's Score Over Time

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Regional Ranking

rank country overall change
2United States75.70.6
4Uruguay 69.2-0.5
5Jamaica 69.1-0.4
8Saint Vincent and the Grenadines67.72.5
9Saint Lucia67.62.6
10Panama 670.7
11Costa Rica 65.60.6
14Guatemala 63.40.4
15The Bahamas63.32.2
16El Salvador 63.2-0.9
17Paraguay 62.1-0.3
18Dominican Republic61.6-1.3
19Honduras 60.61.8
20Nicaragua 58.9-0.3
22Trinidad and Tobago57.7-3.5
32Venezuela 25.2-1.8
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