Dominican Republic Economy Profile 2009

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 destination for about two-thirds of exports. Remittances from the US amount to 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 around 6%, the rate grew to over 12% in 2008. 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 (purchasing power parity)

$78 billion (2008 est.)
$74.08 billion (2007 est.)
$68.27 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$45.6 billion (2008 est.)

GDP - real growth rate

5.3% (2008 est.)
8.5% (2007 est.)
10.7% (2006 est.)

GDP - per capita (PPP)

$8,200 (2008 est.)
$7,900 (2007 est.)
$7,400 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 10.8%
industry: 22.9%
services: 66.3% (2008 est.)

Population below poverty line

42.2% (2004)

Labor force

4.119 million (2008 est.)

Labor force - by occupation

agriculture: 14.6%
industry: 22.3%
services: 63.1% (2005)

Unemployment rate

15.5% (2008 est.)
15.6% (2007 est.)

Household income or consumption by percentage share

lowest 10%: 1.5%
highest 10%: 38.7% (2005)

Distribution of family income - Gini index

49.9 (2005)
47.4 (1998)

Investment (gross fixed)

19.4% of GDP (2008 est.)

Budget

revenues: $7.46 billion
expenditures: $9.027 billion (2008 est.)

Public debt

37.3% of GDP (2008 est.)
61.1% of GDP (2004 est.)

Inflation rate (consumer prices)

10.6% (2008 est.)
6.1% (2007 est.)

Commercial bank prime lending rate

8.18% (31 December 2008)
15.83% (31 December 2007)

Stock of money

$3.62 billion (31 December 2008)
$4.074 billion (31 December 2007)

Stock of quasi money

$5.9 billion (31 December 2008)
$5.631 billion (31 December 2007)

Stock of domestic credit

$17.47 billion (31 December 2008)
$15.92 billion (31 December 2007)

Industries

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

Industrial production growth rate

1.3% (2008 est.)

Electricity - production

13.37 billion kWh (2006 est.)

Electricity - production by source

fossil fuel: 92%
hydro: 7.6%
nuclear: 0%
other: 0.4% (2001)

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 - imports

116,600 bbl/day (2005)

Oil - exports

0 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.)

Current Account Balance

-$4.422 billion (2008 est.)
-$2.068 billion (2007 est.)

Agriculture - products

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

Exports

$6.949 billion (2008 est.)
$7.16 billion (2007 est.)

Exports - commodities

ferronickel, sugar, gold, silver, coffee, cocoa, tobacco, meats, consumer goods

Exports - partners

US 63.1%, Spain 3.7%, Belgium 3.6% (2008)

Imports

$16.08 billion (2008 est.)
$13.6 billion (2007 est.)

Imports - commodities

foodstuffs, petroleum, cotton and fabrics, chemicals and pharmaceuticals

Imports - partners

US 45.3%, Venezuela 9.6%, Mexico 6.1%, Colombia 4.9%, China 4.6% (2008)

Reserves of foreign exchange and gold

$2.288 billion (31 December 2008 est.)
$2.562 billion (31 December 2007 est.)

Debt - external

$10.33 billion (31 December 2008 est.)
$10.21 billion (31 December 2007 est.)

Stock of direct foreign investment - at home

$15.59 billion (31 December 2008 est.)
$12.71 billion (31 December 2007 est.)

Stock of direct foreign investment - abroad

$59 million (31 December 2008 est.)

Market value of publicly traded shares

$NA

Economic aid - recipient

$76.99 million (2005)

Currency (code)

Dominican peso (DOP)

Currency (code)

DOP

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

calendar year