THE DOMINICAN ECONOMY

THE DOMINICAN ECONOMY

The Dominican economy would grow just 4.4% this year, down from 2011, when it grew by 4.5% as reported by the World Bank (WB) which calls on developing countries to prepare for a long period of instability and economic relocating attention to strategies of medium-term development as they prepare for hard times.

The report Global Economic Prospects: Managing growth in a volatile world the World Bank, indicates that in the Caribbean, the sustained recovery of tourism, albeit at moderate rates and a significant increase in activity in the mining and extractive helped keep the development. Also projected that the Dominican economy will grow 4.6% in 2013 and 4.8% in 2014.

This week the Central Bank of Dominican Republic reported that in the first quarter GDP grew 3.8% despite an unfavorable international context, with the oil processing, mining, financial intermediation, the manufacture of beverages, tobacco and insurance fastest growing sectors.

Add the World Bank that the expected gradual recovery of the U.S. is good news for countries like Mexico, Costa Rica, El Salvador and Haiti, which have strong industrial links with the economy of that nation, which also stimulate tourism and remittances to Latin and the Caribbean.

Worldwide says that the flow of remittances to developing countries could be reduced by 5% or more, representing a fall of 3% or more in the PID of the countries most dependent on them.
Tourism, especially from the high income European countries would be affected with serious consequences for the countries of North Africa and the Caribbean island economies, he says.

Another factor that will influence the behavior ensures the economy in the region is the economic slowdown in East Asia especially China, for the large number of products exported to these markets.                                                                                                                                                                                                                                                           

TRADE
The activities showed an increase in the value added of 6.8% over the same period of 2011, which is mainly explained by an increase of 6.7% in imports marketable, plus growth of 2.3% and 3.3% in the agricultural production and manufacturing, respectively. On the other hand, sales of commercial establishments in supermarkets and textiles grew by 17.5% and 12.0% respectively.

Exports of textile manufactures showed a growth of 0.1% and other manufacturing industries by 10.3%, registering an increase of total exports of 7.8%. Among the other manufacturing industries highlights the growth of electrical products (20.4%), pharmaceuticals (18.4%), manfactura of snuff (10.8%) and medical and surgical equipment (10.3).