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Haiti vs. Dominican Republic

Economy

HaitiDominican Republic
Economy - overviewHaiti is a free market economy with low labor costs and tariff-free access to the US for many of its exports. Two-fifths of all Haitians depend on the agricultural sector, mainly small-scale subsistence farming, which remains vulnerable to damage from frequent natural disasters. Poverty, corruption, vulnerability to natural disasters, and low levels of education for much of the population represent some of the most serious impediments to Haiti’s economic growth. Remittances are the primary source of foreign exchange, equivalent to more than a quarter of GDP, and nearly double the combined value of Haitian exports and foreign direct investment.

Currently the poorest country in the Western Hemisphere, with close to 60% of the population living under the national poverty line, Haiti’s GDP growth rose to 5.5% in 2011 as the Haitian economy began recovering from the devastating January 2010 earthquake that destroyed much of its capital city, Port-au-Prince, and neighboring areas. However, growth slowed to below 2% in 2015 and 2016 as political uncertainty, drought conditions, decreasing foreign aid, and the depreciation of the national currency took a toll on investment and economic growth. Hurricane Matthew, the fiercest Caribbean storm in nearly a decade, made landfall in Haiti on 4 October 2016, with 140 mile-per-hour winds, creating a new humanitarian emergency. An estimated 2.1 million people were affected by the category 4 storm, which caused extensive damage to crops, houses, livestock, and infrastructure across Haiti’s southern peninsula.

US economic engagement under the Caribbean Basin Trade Partnership Act (CBTPA) and the 2008 Haitian Hemispheric Opportunity through Partnership Encouragement Act (HOPE II) have contributed to an increase in apparel exports and investment by providing duty-free access to the US. The Haiti Economic Lift Program (HELP) Act of 2010 extended the CBTPA and HOPE II until 2020, while the Trade Preferences Extension Act of 2015 extended trade benefits provided to Haiti in the HOPE and HELP Acts through September 2025. Apparel sector exports in 2016 reached approximately $850 million and account for over 90% of Haitian exports and more than 10% of the GDP.

Investment in Haiti is hampered by the difficulty of doing business and weak infrastructure, including access to electricity. Haiti's outstanding external debt was cancelled by donor countries following the 2010 earthquake, but has since risen to $2.6 billion as of December 2017, the majority of which is owed to Venezuela under the PetroCaribe program. Although the government has increased its revenue collection, it continues to rely on formal international economic assistance for fiscal sustainability, with over 20% of its annual budget coming from foreign aid or direct budget support.
The Dominican Republic was for most of its history primarily 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 construction, tourism, and free trade zones. The mining sector has also played a greater role in the export market since late 2012 with the commencement of the extraction phase of the Pueblo Viejo Gold and Silver mine, one of the largest gold mines in the world. The country suffers from marked income inequality; the poorest half of the population receives less than one-fifth of GDP, while the richest 10% enjoys nearly 40% of GDP. High unemployment, a large informal sector, and underemployment remain important long-term challenges.

The economy is highly dependent upon the US, the destination for approximately half of exports. Remittances from the US amount to about 7% of GDP, equivalent to about a third of exports and two-thirds of tourism receipts. The Central America-Dominican Republic Free Trade Agreement came into force in March 2007, boosting investment and manufacturing exports.

The Dominican Republic's economy rebounded from the global recession in 2010-16, and the fiscal situation is improving. A tax reform package passed in November 2012, a reduction in government spending, and lower energy costs helped to narrow the central government budget deficit from 6.6% of GDP in 2012 to 2.6% in 2016. A liability management operation in January 2015, in which the government paid down over $4 billion of the country’s Petrocaribe debt at a discount of 52% with proceeds from the sale of $2.5 billion in global bonds, reduced the country’s debt load by approximately by 4% of GDP. Since 2015 the Dominican Republic has posted the fastest economic growth in Latin America.
GDP (purchasing power parity)$19.88 billion (2017 est.)
$19.69 billion (2016 est.)
$19.41 billion (2015 est.)
note: data are in 2017 dollars
$172.6 billion (2017 est.)
$164.7 billion (2016 est.)
$154.5 billion (2015 est.)
note: data are in 2017 dollars
GDP - real growth rate1% (2017 est.)
1.4% (2016 est.)
1.2% (2015 est.)
4.8% (2017 est.)
6.6% (2016 est.)
7% (2015 est.)
GDP - per capita (PPP)$1,800 (2017 est.)
$1,800 (2016 est.)
$1,800 (2015 est.)
note: data are in 2017 dollars
$17,000 (2017 est.)
$16,400 (2016 est.)
$15,500 (2015 est.)
note: data are in 2017 dollars
GDP - composition by sectoragriculture: 21.9%
industry: 20.8%
services: 57.3% (2017 est.)
agriculture: 5.5%
industry: 33.8%
services: 60.8% (2017 est.)
Population below poverty line58.5% (2012 est.)
30.5% (2016 est.)
Household income or consumption by percentage sharelowest 10%: 0.7%
highest 10%: 47.7% (2001)
lowest 10%: 1.9%
highest 10%: 37.4% (2013 est.)
Inflation rate (consumer prices)14.7% (2017 est.)
13.4% (2016 est.)
3% (2017 est.)
1.6% (2016 est.)
Labor force4.594 million
note: shortage of skilled labor, unskilled labor abundant (2014 est.)
4.732 million (2017 est.)
Labor force - by occupationagriculture: 38.1%
industry: 11.5%
services: 50.4% (2010)
agriculture: 14.4%
industry: 20.8%
services: 64.7% (2014 est.)
Unemployment rate40.6% (2010 est.)
note: widespread unemployment and underemployment; more than two-thirds of the labor force do not have formal jobs
5.5% (2017 est.)
5.5% (2016 est.)
Distribution of family income - Gini index60.8 (2012)
59.2 (2001)
47.1 (2013 est.)
45.7 (2012 est.)
Budgetrevenues: $1.58 billion
expenditures: $2.251 billion (2017 est.)
revenues: $11.18 billion
expenditures: $12.77 billion (2017 est.)
Industriestextiles, sugar refining, flour milling, cement, light assembly using imported parts
tourism, sugar processing, gold mining, textiles, cement, tobacco, electrical components, medical devices
Industrial production growth rate4% (2017 est.)
6% (2017 est.)
Agriculture - productscoffee, mangoes, cocoa, sugarcane, rice, corn, sorghum; wood, vetiver
cocoa, tobacco, sugarcane, coffee, cotton, rice, beans, potatoes, corn, bananas; cattle, pigs, dairy products, beef, eggs
Exports$960.1 million (2017 est.)
$995 million (2016 est.)
$10.33 billion (2017 est.)
$9.86 billion (2016 est.)
Exports - commoditiesapparel, manufactures, oils, cocoa, mangoes, coffee
gold, silver, cocoa, sugar, coffee, tobacco, meats, consumer goods
Exports - partnersUS 80.8%, Dominican Republic 5.1% (2016)
US 47.3%, Haiti 12%, Canada 7.8%, India 6.2% (2016)
Imports$3.621 billion (2017 est.)
$3.183 billion (2016 est.)
$19 billion (2017 est.)
$17.48 billion (2016 est.)
Imports - commoditiesfood, manufactured goods, machinery and transport equipment, fuels, raw materials
petroleum, foodstuffs, cotton and fabrics, chemicals and pharmaceuticals
Imports - partnersUS 19.3%, China 18.9%, Netherlands Antilles 18.1%, Indonesia 6.5%, Colombia 4.8% (2016)
US 40.4%, China 12.5%, Mexico 5.2% (2016)
Debt - external$2.607 billion (31 December 2017 est.)
$2.17 billion (31 December 2016 est.)
$29.69 billion (31 December 2017 est.)
$27.7 billion (31 December 2016 est.)
Exchange ratesgourdes (HTG) per US dollar -
65.21 (2017 est.)
63.34 (2016 est.)
63.34 (2015 est.)
50.71 (2014 est.)
45.22 (2013 est.)
Dominican pesos (DOP) per US dollar -
47.42 (2017 est.)
46.078 (2016 est.)
46.078 (2015 est.)
45.052 (2014 est.)
43.556 (2013 est.)
Fiscal year1 October - 30 September
calendar year
Public debt33.5% of GDP (2016 est.)
30.2% of GDP (2015 est.)
47.1% of GDP (2017 est.)
47.4% of GDP (2016 est.)
Reserves of foreign exchange and gold$2.044 billion (31 December 2017 est.)
$2.11 billion (31 December 2016 est.)
$6.233 billion (31 December 2017 est.)
$6.134 billion (31 December 2016 est.)
Current Account Balance-$91 million (2017 est.)
-$72 million (2016 est.)
-$1.192 billion (2017 est.)
-$1.066 billion (2016 est.)
GDP (official exchange rate)$8.36 billion (2016 est.)
$74.87 billion (2016 est.)
Stock of direct foreign investment - at home$1.46 billion (31 December 2017 est.)
$1.37 billion (31 December 2016 est.)
$35.93 billion (31 December 2017 est.)
$33.56 billion (31 December 2016 est.)
Market value of publicly traded shares$NA
$NA
Commercial bank prime lending rate14% (31 December 2017 est.)
13.23% (31 December 2016 est.)
14.6% (31 December 2017 est.)
15.08% (31 December 2016 est.)
Stock of domestic credit$3.178 billion (31 December 2017 est.)
$2.253 billion (31 December 2016 est.)
$35.64 billion (31 December 2017 est.)
$33.6 billion (31 December 2016 est.)
Stock of narrow money$1.258 billion (31 December 2017 est.)
$1.049 billion (31 December 2016 est.)
$6.921 billion (31 December 2017 est.)
$6.491 billion (31 December 2016 est.)
Stock of broad money$2.155 billion (31 December 2017 est.)
$1.742 billion (31 December 2016 est.)
$21.44 billion (31 December 2017 est.)
$19.81 billion (31 December 2016 est.)
Taxes and other revenues18.9% of GDP (2017 est.)
14.9% of GDP (2017 est.)
Budget surplus (+) or deficit (-)-8% of GDP (2017 est.)
-2.1% of GDP (2017 est.)
GDP - composition, by end usehousehold consumption: 99.1%
government consumption: 10%
investment in fixed capital: 32.6%
investment in inventories: -1.4%
exports of goods and services: 20%
imports of goods and services: -60.3%
note: figure for household consumption also includes government consumption (2017 est.)
household consumption: 69.8%
government consumption: 10.9%
investment in fixed capital: 23.3%
investment in inventories: 0.6%
exports of goods and services: 25.8%
imports of goods and services: -30.4% (2017 est.)

Source: CIA Factbook