Economic Situation In The Dominican Republic

Topics: International trade, Central America, United States Pages: 2 (674 words) Published: March 27, 2015
Economic situation in the Dominican Republic:

Some data from the World Bank:

Poverty ratio (% of population)
41.1% (2013)
Annual GDP Growth (%)
5.9% (2014)
GDP
$106.240 billion (2013)
GDP per capita
$10,060 (2013)
Inflation (CPI)
3.9% (2012)
Unemployment
12.5% (2013)
Public debt
30.7% of GDP (2011)
Exports
$6.161 billion (2010)
Imports
$14.53 billion (2010)

1. General information:

The Dominican Republic has the ninth largest economy in Latin America, and second largest in the Caribbean and Central American region. For the past two decades, the Dominican Republic has been one of the fastest growing economies, with GDP growth averaging around 5.5 percent annually between 1991 and 2013. However, despite this increase, poverty is higher today than in 2000. The poverty rate in 2013 was 41.1%, whereas in 2000 was 32%. They have a deficit in the balance of trade (Exp – Imp).

This country has long been viewed primarily as an exporter of sugar, coffee, and tobacco. However, in recent years the service sector has overtaken agriculture as the economy's largest employer. Nevertheless, despite this increase in the employment and earnings in the service sector, mining and agriculture continue to be the country’s highest export earners. In other words, the great employer in this country is the service sector, but the great exporters are agriculture and mining.

Obviously, the success of both tourism and exports is extremely dependent upon the global economy. They are highly dependent on the US, the destination for more than half of exports (60%).

2. Recession and the Baninter case:

In 2002, the Dominican economy, despite strong performance in the mining and telecommunications sectors, entered a recession. In addition to this recession, the 11 September terrorist attacks decreased the tourism industry, as well. For the past ten years tourism has recovered and nowadays it is one of the main employers of the country, as we said...
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