Dominican Republic: Economic Outline

Economic Indicators

The Dominican economy, which had shown a strong growth until 2007, was affected by the global economic crisis, which provoked a drop in tourism and in money transfers from expatriates. The crisis intensified structural problems such as failures in the electric sector and almost created a tax deficit in the Central Bank. After having dropped to 3.5% in 2009, the GDP's growth rebounded in 2010 attaining 5.5%, and it should remain at this level in 2011.

The government revenues dropped under the effect of the crisis and the Dominican Republic had to negotiate with the IMF a stand-by agreement which essentially consists of implementing a contra-cyclic fiscal policy and a flexible monetary policy. If the revival is vigorous, the country still has to increase fiscal revenues, to reduce the electricity subventions and to prevent overheating the economy.

The Dominican Republic is a middle-income country where there is a great level of inequality in the share of revenues. More than one third of its population lives below the poverty line, the rate of unemployment is high (14%), as well as the level of informal work.

Main Indicators	2009	2010	2011	2012 (e)	2013 (e)
GDP (billions USD)	46.71	51.63e	54.36	58.87	63.26
GDP (Constant Prices, Annual % Change)	3.5	7.8e	4.5	5.5	6.0
GDP per Capita (USD)	4,815	5,227	5,406e	5,750	6,070
General Government Gross Debt (in % of GDP)	28.4	28.7	28.5	26.7	24.9
Inflation Rate (%)	1.4	6.3	8.3	6.3	4.8
Current Account (billions USD)	-2.33	-4.43	-4.40	-3.57	-3.84
Current Account (in % of GDP)	-5.0	-8.6	-8.1	-6.1	-

Source: IMF - World Economic Outlook Database - Last Available Data.

Note: (e) Estimated Data

Monetary Indicators	2008	2009	2010
Foreign Debt (million USD)	10,121	11,003	-
Dominican Peso (DOP) - Average Annual Exchange Rate For 1 USD	34.62	36.03	36.88

Source: World Bank - Last Available Data.

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Main Sectors of Industry

Breakdown of Economic Activity By Sector	Agriculture	Industry	Services
Employment By Sector (in % of Total Employment)	14.5	21.9	63.5
Value Added (in % of GDP)	5.5	27.3	67.1
Value Added (Annual % Change)	-14.1	-1.8	19.7