Dominica: Prime Minister Roosevelt Skerrit addressed the nation at the End of Year Press Conference on Monday, Dec 15, 2025. At the conference he talked about the achievements and development made this year.
PM Skerrit refused the concerns bothering the nation that the increase in recent minimum wages would fuel inflation. He explained that the minimum wage increases do not automatically cause inflation. It depends on how wage adjustments are managed and not only on increase in wages.
Real Examples As Evidence
He emphasised how labour costs form a small share of retail prices, as in most Caribbean retail businesses, wages account for only 10% to 15% of the final price of goods.
Dr. Skerrit explained this giving the real and practical examples. He said that on a $200 EC grocery bill the labour represents about $30. A 30% minimum wage increase, raises labour cost by $9 and not $60. This resulted in a 4.5% potential price impact and not a 30% increase.
Raise In Minimum Wage Don’t Supports Inflation
He mentioned that the main drivers of inflation are external factors and not the wages, which consists of international freight costs, global community prices, exchange rate fluctuations, import duties and taxes. He also talked about the retailers who can absorb the wage increases through improved productivity, better inventory management, supply chain efficiency and waste reduction.
Regional evidence from Caribbean countries such as Barbados, Jamaica, Antigua and Barbuda and Saint Lucia presented the evidence that shows no wage-driven inflation or increased minimum wages without triggering the significant retail inflation.
PM Skerrit also acknowledged the measures taken by the Government of Dominica to prevent inflation. These measures include productivity support and skills training, reduced operating costs for businesses, targeted assistance for vulnerable sectors and market monitoring to prevent price gouging.
According to Skerrit, a fair minimum wage raises worker incomes without burdening consumers. It supports economic stability and does not lead to widespread inflation.
Other Major Projects Developing Dominica
In his End of Year Press Conference speech, PM Skerrit also emphasised that Dominica follows a powerful principle i.e. ‘People First’. He also mentioned about the development and upliftment of dignity and well-being of the people. He reflected upon the 2025 achievements, considering it as ‘Philosophy in Action’.
While giving the speech, he also stated about the removal of custom duties VAT that eased the burden on the households. Housing Revolution that provides security, stability, hope and dignity to the people. This project continued to transform lives and communities in Dominica.
In 2025, the housing recovery program was successfully completed through a loan from World Bank. The programme adopted a homeowner driven model, which is first of its kind anywhere in the Caribbean.
Dominica also introduced the electoral reform this year to put people first and observed that over 9,000 people have confirmed their registration. He also mentioned about the other ongoing major projects that are Dominica International Airport, Dominica Hotel and Tourism Association, Northern Road Improvement project from Portsmouth to Hatton Garden, Loubiere to Grand Bay Road in South, Roseau Enhancement Project and the Construction of Six new Primary Schools.
Further, some other major projects of Dominica include the tourism sector which will be enhanced by the Big Ticket Projects, Cabrits Marina and the Dominica Cable Car project. He also mentioned about OK2HP scheme, Dominica Youth Business Trust and soon to be completed Geothermal Power Plant.