Economy - overview Economic reforms launched in late 1994 contributed to exchange rate stabilization, reduced inflation, and strong GDP growth in 1995-96. In 1996, there was increased mineral and petroleum exploration, and a new investment law that allows for repatriation of capital dividends has drawn more investment to the island. Upon coming to power in August 1996, President FERNANDEZ nevertheless inherited a trouble-ridden economy hampered by a pressured peso, a large external debt, nearly bankrupt state-owned enterprises, and a manufacturing sector hindered by daily power outages. In December, FERNANDEZ presented a bold economic reform package - including such reforms as the devaluation of the peso, income tax cuts, a 50% increase in sales taxes, reduced import tariffs, and increased gasoline prices - in an attempt to create a market-oriented economy that can compete internationally. Even though reforms are moving ahead at a slow pace, the economy grew vigorously in 1997, with tourism and telecommunications leading the advance. The government is working to increase electric generating capacity, a key to continued economic growth.

GDP purchasing power parity - $38.3 billion (1997 est.)

GDP - real growth rate 7% (1997 est.)

GDP - per capita purchasing power parity - $4,700 (1997 est.)

GDP - composition by sector
agriculture: 15%
industry: 22%
services: 63% (1995)

Inflation rate - consumer price index 10.9% (1997 est.)

Labor force 2.3 million to 2.6 million
by occupation: agriculture 50%, services and government 32%, industry 18% (1991 est.)

Unemployment rate 30% (1996 est.)

Budget
revenues: $2 billion
expenditures: $2 billion, including capital expenditures of $994 million (1996 est.)

Industries tourism, sugar processing, ferronickel and gold mining, textiles, cement, tobacco

Industrial production growth rate 6.3% (1995 est.)

Electricity - capacity 1.447 million kW (1995)

Electricity - production 6.5 billion kWh (1995)

Electricity - consumption per capita 865 kWh (1995)

Agriculture - products sugarcane, coffee, cotton, cocoa, tobacco, rice, beans, potatoes, corn, bananas; cattle, pigs, dairy products, meat, eggs

Exports
total value: $815 million (f.o.b., 1996)
commodities: ferronickel, sugar, gold, coffee, cocoa
partners: US 45%, EU 34%, Canada, Japan, Puerto Rico (1995)

Imports
total value: $3.7 billion (f.o.b., 1996)
commodities: foodstuffs, petroleum, cotton and fabrics, chemicals and pharmaceuticals
partners: US 44%, EU 16%, Venezuela 11%, Netherlands Antilles, Mexico, Japan (1995)

Debt - external $3.6 billion (1997)

Economic aid
recipient: ODA, $21 million (1993)

Currency 1 Dominican peso (RD$) = 100 centavos

Exchange rates Dominican pesos (RD$) per US$1 - 14.332 (December 1997), 14.265 (1997), 13.775 (1996), 13.597 (1995), 13.160 (1994), 12.676 (1993)

Fiscal year calendar year

NOTE: The information regarding Dominican Republic on this page is re-published from the 1998 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Dominican Republic Economy 1998 information contained here. All suggestions for corrections of any errors about Dominican Republic Economy 1998 should be addressed to the CIA.