The importance of Citizenship-by-Investment (CBI) initiatives in the Eastern Caribbean Currency Union’s (ECCU) economic framework is highlighted in the most recent IMF report. As the largest single contributor to the country’s fiscal stability, CBI’s revenue in 2024 accounted for an impressive 37% of GDP, demonstrating Dominica’s heavy reliance on it.
Although these initiatives increase foreign exchange reserves and draw in foreign direct investment, the IMF raises concerns about their lack of transparency and possible hazards, calling for more precise rules and regional cooperation to reduce vulnerabilities.
However, CBI revenues have significantly decreased in other ECCU countries, like Saint Kitts and Nevis, indicating a change in the regional economy. The report emphasizes that even though CBI is crucial to government revenue, Dominica’s heavy reliance raises concerns about its ability to withstand demand swings and international scrutiny.
In order to establish best practices and guarantee sustainable economic development in the area, the findings generally urge better measures and assessments of CBI initiatives.
