Dominican Republic
The Economy of Dominican Republic
The Dominican Republic has enjoyed strong GDP growth since 2005, with double digit growth in 2006 to 2007: estimated GDP/PPP $85.4 billion; per capita $9,200. Tourism (the leading foreign exchange earner), telecommunications, and free-trade-zone manufacturing (garments, medical devices, etc.) are the most important sectors, although agriculture is still a major part of the economy.
The economy is highly dependent upon the US, the source of nearly 75% of exports, and remittances represent about a 10% of GDP, equivalent to almost 50% of exports and 75% of tourism receipts. With the help of strict fiscal targets agreed to in the 2004 renegotiation of an IMF ( International Monetary Fund ) standby loan, President Fernandez has stabilized the country's financial situation, lowering inflation to less than 6%.
On September 5, 2005, the Dominican Congress ratified a free trade agreement with the U.S. and five Central American countries, known as CAFTA-DR. The CAFTA-DR agreement entered into force for the Dominican Republic on March 1, 2007. The total stock of U.S. foreign direct investment (FDI) in Dominican Republic as of 2006 was US$3.3 billion, much of it directed to the energy and tourism sectors, to free trade zones, and to the telecommunications sector. Remittances were close to $2.7
billion in 2006.
