Confidus Solutions logotype

Confidus Solutions

Economy of Dominican Republic

Dominican Republic is considered to be a developing nation. The developmental stage of a nation is determined by a number of factors including, but not limited to, economic prosperity, life expectancy, income equality, and quality of life. As a developing nation, Dominican Republic may not be able to offer consistent social services to its citizens. These social services may include things like public education, reliable healthcare, and law enforcement. Citizens of developing nations may have lower life expectancies than citizens of developed nations. Each year, Dominican Republic exports around $9.82 billion and imports roughly $16.8 billion. 5.5% of population in the country are unemployed. The total number of unemployed people in Dominican Republic is 598,565. In Dominican Republic, 31% of the population lives below the poverty line. The percentage of citizens living below the poverty line in Dominican Republic is fairly high, but is not reason for complete concern with regard to investments. Potential financial backers should look at other economic markers, including GDP, urbanization rate, and strength of currency, before making any decisions regarding investments. Government expenditure on education is 2.3% of GDP. The Gini Index of the country is 45.7. Dominican Republic is experiencing poor equality. The gap between the richest and poorest citizens in this country is quite noticeable. Dominican Republic has a Human Development Index (HDI) of 0.7. Dominican Republic has an upper medium HDI score. This indicates that the majority of citizens will be able to attain a desirable life, though some citizens will not be able to achieve high living standards. The strength of legal rights index for Dominican Republic is 1. Overall, it is considered to be rather weak - bankrupcy and collateral laws are unable to protect the rights of borrowers and lenders in case of credit-related complications; credit information, if any at all, is scarce and hardly accessible.

Currency

The currency of Dominican Republic is Dominican peso. The plural form of the word Dominican peso is pesos. The symbol used for this currency is RD$, and it is abbreviated as DOP. The Dominican peso is divided into Centavo; there are 100 in one peso.

Credit rating

The depth of credit information index for Dominican Republic is 8, which means that information is mostly sufficient and quite detailed; accessibility is not a problem. According to the S&P credit-rating agency, Dominican Republic has a credit rating score of BB-, and the prospects of this rating are stable. According to the Fitch credit-rating agency, Dominican Republic has a credit rating score of B+, and the prospects of this rating are stable. According to the Moody's credit-rating agency, Dominican Republic has a credit rating score of B1, and the prospects of this rating are stable.

Central bank

The prime lending rate of Dominican Republic's commercial banks is 13.7. In Dominican Republic, the institution that manages the state's currency, money supply, and interest rates is called Central Bank of the Dominican Republic. Locally, the central bank of Dominican Republic is called Banco Central de la República Dominicana. The average deposit interest rate offered by local banks in Dominican Republic is 6.7%.

Public debt

Dominican Republic has a government debt of 77% of the country's Gross Domestic Product (GDP), as assessed in 2012.

Tax information

The corporate tax in Dominican Republic is set at 27%. Personal income tax ranges from 0% to 25%, depending on your specific situation and income level. VAT in Dominican Republic is 18%.

Finances

The total Gross Domestic Product (GDP) assessed as Purchasing Power Parity (PPP) in Dominican Republic is $138511 billion. The Gross Domestic Product (GDP) assessed as Purchasing Power Parity (PPP) per capita in Dominican Republic was last recorded at $13 million. PPP in Dominican Republic is considered to be below average when compared to other countries. Below average PPP indicates that citizens in this country find it difficult to purchase local goods. Local goods can include food, shelter, clothing, health care, personal care, essential furnishings, transportation and communication, laundry, and various types of insurance. Countries with below average PPP are dangerous locations for investments. The total Gross Domestic Product (GDP) in Dominican Republic is 60,612 billion. Based on this statistic, Dominican Republic is considered to have a medium economy. Countries with medium economies support an average number of industries and opportunities for investment. It should not be too difficult to find worthwhile investment opportunities in medium economies. The Gross Domestic Product (GDP) per capita in Dominican Republic was last recorded at $6 million. The average citizen in Dominican Republic has very high wealth. Countries with very high wealth per capita have an extended life expectancy and very high standard of living. Highly skilled workers can be found in many industries, and labor is very expensive in these countries. Countries with very high wealth offer opportunities for safe investments, as they are often supported by a diverse and thriving financial sector. GDP Annual Growth Rate in Dominican Republic averaged 5.3% in 2014. According to this percentage, Dominican Republic is currently experiencing significant growth. Countries that are experiencing significant growth offer the best chance for a substantial return on investment, as GDP growth rate is the most important indicator of economic health. As GDP grows, business, jobs, and personal income grow as well. To read more about financial information click on finances of Dominican Republic.

Industry

Major industries in the country are tourism, sugar processing, gold mining, textiles, cement, tobacco. The total labor force of Dominican Republic is 5,081,370 people, wherein 5.5% of population in the country are unemployed. The total number of unemployed people in Dominican Republic is 598,565. The Industrial Production growth rate of Dominican Republic is 1.5%.To read more about industrial information within Dominican Republic click on industry of Dominican Republic.

Agriculture

There are 10881 km2 of arable land in Dominican Republic, and it comprises 22% of the country's total territory. There are 15845 km2 of cultivated land in Dominican Republic. The country's major agricultural crops and products are sugarcane, coffee, cotton, cocoa, tobacco, rice, beans, potatoes, corn, bananas, cattle, pigs, dairy products, beef, eggs.To read more about agriculture click on agriculture of Dominican Republic.