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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
Dominican Republic:
Achieving Sustainable Growth
BY Dr. Peter Clegg
Pulse OF THE CARIBBEAN
www.carib-export.com22