Caribbean Export OUTLOOK 2016 - 2017

Pulse OF THE CARIBBEAN

Dominican Republic: Achieving Sustainable Growth BY Dr. Peter Clegg

Over the past 20 years, the Dominican Republic economy has performed very well, with GDP growth averaging around 5.5% since the early 1990s. This strong performance is being sustained. According to the country’s Central Bank, growth in 2014 was 7.3% - the best in the Americas. Although the economy is not expected to expand as much in 2015, it is projected to remain at above average levels, at 6%. The economy is generally experiencing growth across all sectors, but particularly in mining (20.3%), construction (13.8%), and hotels, bars and restaurants (7.5%). The mining sector has profited from the launch of operations at

Barrick Gold Corporation’s Pueblo Viejo project, with gold and silver exports soaring (by 524% in 2013). Gold now constitutes about 15% of total goods exports. Meanwhile, the country saw a record number of tourist arrivals (5.1 million) in 2014 – a 9.6% increase year-on-year. This was due to strong growth in travel from the United States (US), the main source market. Growth has been assisted further by strong consumer spending, public investments in education and health (mainly in relation to infrastructure), increasing loans to the private sector, which have benefitted construction

works and small businesses, and a managed, slow depreciation of the peso, which is likely to continue. Also, the value of remittances from Dominicans living abroad continues to increase; in 2014, the figure was US$13 billion or about 7.5% of GDP. Alongside these developments, inflation is low, the current account deficit is in single figures, and the country’s investment rating was upgraded at the end of 2014 by the international rating agencies. The positive situation at home is mirrored abroad with the government and private sector taking steps to increase the country’s trading

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