Bananas and other agriculture dominate Dominica's economy, and nearly one-third of the labor force works in agriculture. This sector, however, is highly vulnerable to weather conditions and to external events affecting commodity prices. In response to decreasing European Union (EU) banana trade preferences, the government has diversified the agricultural sector, with the export of small quantities of citrus fruits and vegetables and the introduction of coffee, patchouli, aloe vera, cut flowers, and exotic fruits such as mangoes, guavas, and papayas. Dominica also has had some success in increasing its manufactured exports, primarily soap. Dominica also recently entered the offshore financial services market.

Dominica is mostly volcanic and has few beaches; therefore, tourism has developed more slowly than on neighboring islands. Nevertheless, Dominica's high, rugged mountains, rainforests, freshwater lakes, hot springs, waterfalls, and diving spots make it an attractive eco-tourism destination. Cruise ship stopovers have increased following the development of modern docking and waterfront facilities in the capital.

Dominica's currency is the Eastern Caribbean Dollar (EC$), a regional currency shared among members of the Eastern Caribbean Currency Union (ECCU). The Eastern Caribbean Central Bank (ECCB) issues the EC$, manages monetary policy, and regulates and supervises commercial banking activities in its member countries. The ECCB's primary monetary policy goal is to maintain the long-standing currency peg of US$1 = EC$2.7.

Dominica is a beneficiary of the U.S. Caribbean Basin Initiative that grants duty-free entry into the U.S. for many goods. In 2004, exports totaled $41 million, with 3% going to the U.S. Dominica's imports totaled $145 million, 35% from the U.S. Dominica also belongs to the predominantly English-speaking Caribbean Community and Common Market (CARICOM), the CARICOM Single Market and Economy (CSME), and the Organization of Eastern Caribbean States (OECS).