After steady growth in the 1980s and early 1990s, Dominica's economy slowed in the late 1990s because of the banana crisis, hurricane damage, and a decline in manufacturing output. GDP growth from 1996 averaged 2.8 percent annually, a lower rate than neighboring countries, and in 1999 there was no growth at all, due largely to damage from Hurricane Lenny. As a result, inflation has been low since the mid-1990s.
Dominica's currency, the Eastern Caribbean dollar (EC$), shared with the 7 other members of the Eastern Caribbean Central Bank (ECCB), is stable and has been pegged at a rate of EC$2.7 to US$1 for many years. This means that Dominica is not particularly vulnerable to fluctuating exchange rates , although transactions with
|Exchange rates: Dominica|
|East Caribbean dollars (EC$) per US$1|
|Note: Dominican currency has been at a fixed rate since 1976.|
|SOURCE: CIA World Factbook 2001 [ONLINE].|
Europe have been affected by the low value of the euro. There are plans for ECCB member countries to participate in a regional stock exchange, further integrating the economies of the small islands.