Dominican Republic flag

The Economy of Dominican Republic

Dominican Economy

Dominican Republic's map

Economy - overview: The Dominican Republic has enjoyed strong GDP growth since 2005, and continued to post sound gains through mid-2008. The global recession, however, had a significant impact on GDP growth in the latter half of the year as tourism and remittances, two of the Dominican Republic's most important economic contributors, showed signs of slowing. The economy is highly dependent upon the US, the source of nearly three-fourths of exports, and remittances represent about a tenth of GDP, equivalent to almost half of exports and three-quarters of tourism receipts. The country has long been viewed primarily as an exporter of sugar, coffee, and tobacco, but in recent years the service sector has overtaken agriculture as the economy's largest employer due to growth in tourism and free trade zones. Although 2007 saw inflation rates averaging around 6%, inflation rates in 2008 grew to over 11% on average for the first 3 quarters. High food prices, driven by the effects of consecutive tropical storms on agricultural products, and education prices were significant contributors to the jump. The effects of the global financial crisis and the US recession are projected to negatively affect GDP growth in 2009, with a rebound expected in 2010. Although the economy is growing at a respectable rate, high unemployment and underemployment remains an important challenge. The country suffers from marked income inequality; the poorest half of the population receives less than one-fifth of GNP, while the richest 10% enjoys nearly 40% of national income. The Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) came into force in March 2007, which should boost investment and exports and reduce losses to the Asian garment industry.

GDP:

GDP - real growth rate: 4.5% (2008 est.) 8.5% (2007 est.) 10.7% (2006 est.)

GDP - per capita:

GDP - composition by sector: agriculture: 11.3% industry: 23.5% services: 65.2% (2008 est.)

Population below poverty line:

Household income or consumption by percentage share: lowest 10%: 1.4% highest 10%: 41.1% (2004)

Distribution of family income - Gini index: 49.9 (2005)

Inflation rate (consumer prices):

Labor force: 4.119 million (2008 est.)

Labor force - by occupation: agriculture: 14.6% industry: 22.3% services: 63.1% (2005)

Unemployment rate: 15.4% (2008 est.)

Budget: revenues: $7.947 billion expenditures: $9.069 billion (2008 est.)

Industries: tourism, sugar processing, ferronickel and gold mining, textiles, cement, tobacco

Industrial production growth rate: 3.2% (2008 est.)

Electricity - production: 13.37 billion kWh (2006 est.)

Electricity - production by source:

Electricity - consumption: 11.81 billion kWh (2006 est.)

Electricity - exports: 0 kWh (2007 est.)

Electricity - imports: 0 kWh (2007 est.)

Oil - production: 12 bbl/day (2004)

Oil - consumption: 117,300 bbl/day (2006 est.)

Oil - exports: 0 bbl/day (2005)

Oil - imports: 116,600 bbl/day (2005)

Oil - proved reserves: NA bbl

Natural gas - production: 0 cu m (2007 est.)

Natural gas - consumption: 250 million cu m (2006 est.)

Natural gas - exports: 0 cu m (2007 est.)

Natural gas - imports: 239.8 million cu m (2005)

Natural gas - proved reserves: 0 cu m (1 January 2006 est.)

Agriculture - products: sugarcane, coffee, cotton, cocoa, tobacco, rice, beans, potatoes, corn, bananas; cattle, pigs, dairy products, beef, eggs

Exports: $7.17 billion f.o.b. (2008 est.)

Exports - commodities: ferronickel, sugar, gold, silver, coffee, cocoa, tobacco, meats, consumer goods

Exports - partners: US 66.4%, Belgium 3.7%, Finland 3.2% (2007)

Imports: $16.02 billion f.o.b. (2008 est.)

Imports - commodities: foodstuffs, petroleum, cotton and fabrics, chemicals and pharmaceuticals

Imports - partners: US 46%, Venezuela 8.1%, Mexico 5.9%, Colombia 4.7% (2007)

Debt - external: $11.7 billion (31 December 2008 est.)

Economic aid - recipient:

Currency:

Currency code:

Exchange rates: Dominican pesos (DOP) per US dollar - 34.775 (2008 est.), 33.113 (2007), 33.406 (2006), 30.409 (2005), 42.12 (2004)

Fiscal year: