Dominican Republic Economy Profile 2000

Economy - overview

In December 1996, incoming President FERNANDEZ presented a bold reform package for this Caribbean economy - including the devaluation of the peso, income tax cuts, a 50% increase in sales taxes, reduced import tariffs, and increased gasoline prices - in an attempt to create a market-oriented economy that can compete internationally. Even though most reforms are stalled in the legislature - including the intellectual property rights bill, social security reform, and a new electricity law first submitted in 1993 - the economy has grown vigorously under FERNANDEZ's administration. Construction, tourism and telecommunications are leading the advance. The government is working to increase electric generating capacity, a key to continued economic growth; the state electricity company was finally privatized following numerous delays. The continuation of this vigorous growth in 2000 will depend on the policies adopted by the new administration.

GDP (purchasing power parity)

purchasing power parity - $43.7 billion (1999 est.)

GDP - real growth rate

8.3% (1999 est.)

GDP - per capita (PPP)

purchasing power parity - $5,400 (1999 est.)

GDP - composition by sector

agriculture:13.6%
industry:30.8%
services:55.6% (1998 est.)

Population below poverty line

25% (1999 est.)

Household income or consumption by percentage share

lowest 10%:1.6%
highest 10%:39.6% (1989)

Inflation rate (consumer prices)

5.1% (1999)

Labor force

2.3 million to 2.6 million

Labor force - by occupation

services and government 58.7%, industry 24.3%, agriculture 17% (1998 est.)

Unemployment rate

13.8% (1999 est.)

Budget

revenues:$2.3 billion
expenditures:$2.9 billion, including capital expenditures of $867 million (1999 est.)

Industries

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

Industrial production growth rate

6.3% (1995 est.)

Electricity - production

8.476 billion kWh (1998)

Electricity - production by source

fossil fuel:72.04%
hydro:27.62%
nuclear:0%
other:0.34% (1998)

Electricity - consumption

7.883 billion kWh (1998)

Electricity - exports

0 kWh (1998)

Electricity - imports

0 kWh (1998)

Agriculture - products

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

Exports

$5.1 billion (f.o.b., 1999)

Exports - commodities

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

Exports - partners

US 61.6%, Belgium 11.1%, Asia 5.9%, Canada 2.9% (1998 est.)

Imports

$8.2 billion (f.o.b., 1999)

Imports - commodities

foodstuffs, petroleum, cotton and fabrics, chemicals and pharmaceuticals

Imports - partners

US 56%, Venezuela 23%, Mexico 9%, Japan 4% (1999 est.)

Debt - external

$3.7 billion (1999 est.)

Economic aid - recipient

$239.6 million (1995)

Currency

1 Dominican peso (RD$) = 100 centavos

Exchange rates

Dominican pesos (RD$) per US$1 - 16.161 (January 2000), 16.033 (1999), 15.267 (1998), 14.265 (1997), 13.775 (1996), 13.597 (1995)

Fiscal year

calendar year