Dominican Republic Economy Profile 2008

Economy - overview

The Dominican Republic has enjoyed strong GDP growth since 2005, with double digit growth in 2006. In 2007, exports were bolstered by the nearly 50% increase in nickel prices; however, prices are expected to fall in 2008, contributing to a slowdown in GDP growth for the year. Although the country has long been viewed primarily as an exporter of sugar, coffee, and tobacco, in recent years the service sector has overtaken agriculture as the economy's largest employer due to growth in tourism and free trade zones. 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. With the help of strict fiscal targets agreed to in the 2004 renegotiation of an IMF standby loan, President FERNANDEZ has stabilized the country's financial situation, lowering inflation to less than 6%. A fiscal expansion is expected for 2008 prior to the elections in May and for Tropical Storm Noel reconstruction. 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 diminishs losses to the Asian garment industry.

GDP (purchasing power parity)

$85.4 billion (2007 est.)

GDP (official exchange rate)

$35.49 billion (2007 est.)

GDP - real growth rate

7.2% (2007 est.)

GDP - per capita (PPP)

$9,200 (2007 est.)

GDP - composition by sector

agriculture: 11.5%
industry: 28.3%
services: 60.2% (2007 est.)

Population below poverty line

42.2% (2004)

Household income or consumption by percentage share

lowest 10%: 1.4%
highest 10%: 41.1% (2004)

Inflation rate (consumer prices)

5.8% (2007 est.)

Investment (gross fixed)

17.2% of GDP (2007 est.)

Labor force

3.986 million (2007 est.)

Labor force - by occupation

agriculture: 17%
industry: 24.3%
services: 58.7% (1998 est.)

Unemployment rate

15.5% (2007 est.)

Distribution of family income - Gini index

51.6 (2004)

Budget

revenues: $7.014 billion
expenditures: $6.985 billion (2007 est.)

Public debt

40.4% of GDP (2007 est.)

Industries

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

Industrial production growth rate

5.5% (2007 est.)

Electricity - production

12.22 billion kWh (2005)

Electricity - consumption

8.791 billion kWh (2005)

Electricity - exports

0 kWh (2005)

Electricity - imports

0 kWh (2005)

Oil - production

12 bbl/day (2004)

Oil - consumption

116,000 bbl/day (2005 est.)

Oil - imports

116,700 bbl/day (2004)

Oil - exports

0 bbl/day (2004)

Oil - proved reserves

0 bbl (1 January 2006 est.)

Natural gas - production

0 cu m (2005 est.)

Natural gas - consumption

239.8 million cu m (2005 est.)

Natural gas - exports

0 cu m (2005 est.)

Natural gas - imports

239.8 million cu m (2005)

Natural gas - proved reserves

0 cu m (1 January 2006 est.)

Current Account Balance

-$1.993 billion (2007 est.)

Agriculture - products

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

Exports

$6.881 billion f.o.b. (2007 est.)

Exports - commodities

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

Exports - partners

US 72.7%, UK 3.2%, Belgium 2.4% (2006)

Imports

$12.89 billion f.o.b. (2007 est.)

Imports - commodities

foodstuffs, petroleum, cotton and fabrics, chemicals and pharmaceuticals

Imports - partners

US 46.9%, Venezuela 8.4%, Colombia 6.3%, Mexico 5.7% (2006)

Reserves of foreign exchange and gold

$2.525 billion (31 December 2007 est.)

Debt - external

$8.842 billion (31 December 2007 est.)

Stock of direct foreign investment - at home

$10.67 billion (2006 est.)

Stock of direct foreign investment - abroad

$59 million (2006 est.)

Market value of publicly traded shares

$NA

Economic aid - recipient

$76.99 million (2005)

Currency (code)

Dominican peso (DOP)

Exchange rates

Dominican pesos per US dollar - 33.113 (2007), 33.406 (2006), 30.409 (2005), 42.12 (2004), 30.831 (2003)

Fiscal year

calendar year