Dominican Republic

Economy

Main article: Economy of the Dominican Republic

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The Dominican Republic is a middle-income developing country primarily dependent on agriculture, trade, and services, especially tourism. Although the service sector has recently overtaken agriculture as the leading employer of Dominicans (due principally to growth in tourism and Free Trade Zones), agriculture remains the most important sector in terms of domestic consumption and is in second place (behind mining) in terms of export earnings. Tourism accounts for more than $1 billion in annual earnings. Free Trade Zone earnings and tourism are the fastest-growing export sectors. Remittances from Dominicans living in the United States (diaspora), are estimated to be about $1.5 billion per year.

Related Topics:
Tourism - Free Trade Zones - Remittances

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Following economic turmoil in the late 1980s and 1990, during which the GDP fell by up to 5% and consumer price inflation reached an unprecedented 100%, the Dominican Republic entered a period of moderate growth and declining inflation until 2002 after which the economy entered a recession, after the second commercial bank of the country collapsed, caused by a major fraud. GDP dropped by 1% in 2003 while inflation ballooned by over 27%.

Related Topics:
Inflation - Commercial bank

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Despite a widening merchandise trade deficit, tourism earnings and remittances have helped build foreign exchange reserves. The Dominican Republic is current on foreign private debt, and has agreed to pay arrears of about $130 million to the U.S. Department of Agriculture's Commodity Credit Corporation.

Related Topics:
Private debt - U.S. Department of Agriculture's - Commodity Credit Corporation

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