The Economist: Dominican Republic economy: Whopping growth

[aegap]

COUNTRY BRIEFING

FROM THE ECONOMIST INTELLIGENCE UNIT


Dominican Republic economy: Whopping growth
The economy of the Dominican Republic is expanding at double-digit rates, according to the latest figures from the country’s Central Bank. This is an impressive turnaround from the banking-sector collapse and economic recession of 2003-04. However, the country’s lack of competitiveness, institutional weaknesses, a persistent electricity crisis and a slowdown in the US economy are likely to act as brakes on Dominican growth prospects going forward.

The Central Bank governor, Hector Valdez Albizu, has revealed that GDP grew by 11.7% in the first half of 2005. For full-year 2006, he forecasts growth of 9.3% (the same rate of growth as in 2005). This is substantially higher than the IMF’s most recent estimate for the country of 5.5% for the year (which was published before the latest data was published). In any case, the performance year to date places the Dominican Republic in the ranks of some of the fastest-growing economies in the world, such as China. Within Latin America, only Argentina is growing at a pace close to this rate.

Leading growth sectors in the first half were construction (up 32.6%), communications (28%), agriculture (19.6%), mining (10.3%), local manufacturing (78.6%), trade (10.3%) and finance and insurance (8.9%). Tourism grew by a more moderate 6.8%, while the free-zone sector, which manufactures for export, shrank by 8.1%.

[aegap]

..more economic info

[Don Juan]

.....When DR will be in full compliance with CAFTA!
Now, if could only solve the pesky electricity problem, I may just emigrate back to "mi tierra natal".
The manufacturing sector was/is the only one with negative growth. This is certaintly due to lack of electricity but also the country needs to do something to eliminate dead weight by firing incompetent, ineffective government "workers" that do little more than show up for "work". If not for the "mañana" syndrome that afflicts most Dominicans, we could possibly today be on a par with the likes of China and Argentina as the world's fastest growing economies. Nevertheless, these are very impressive numbers. Let's hope the very poor will see some benefit from all this.

[aegap]

Originally Posted by Don Juan

..... If not for the "mañana" syndrome that afflicts most Dominicans, we could possibly today be on a par with the likes of China and Argentina as the world's fastest growing economies. ..

Originally Posted by aegap

the performance year to date places the Dominican Republic(9.3% GDP growth in 2005, 11.7% first semester 2006) in the ranks of some of the fastest-growing economies in the world, such as China (9.9% GDP growth in 2005 *10.7 in 2006). Within Latin America, only Argentina (9.2% GDP growth in 2005, *7.5% growth in 2006) is growing at a pace close to this rate.

.......
[*forcasted]
.........

[aegap]

..contrast within the island of Hispaniola:

The year 2007 will see regional GDP growth of about 4.5% [in Latin America and the Caribbean], within the context of a moderate slowdown of the world economy, according to ECLAC projections.
This economic expansion will be spread across Latin America and the Caribbean, ranging between 3.5% and 6.5% for most countries. The exceptions are Argentina, the Dominican Republic and Venezuela, with growth rates over 7.5%, and Haiti, at about 2.5%.

(once population growth is factored in, Haiti's GDP growth would probably be negative)

[aegap]

Dominican Republic economy: Rocketing upwards (sub'q req)

FROM THE ECONOMIST INTELLIGENCE UNIT
The Dominican economy is registering startling growth this year, estimated by the Central Bank to have reached 11.3% during the first three quarters. This should put the country on track to post double-digit expansion of at least 10% for full-year 2006, and place it among a select group of the top-ten fastest-growing economies in the world.

The main drivers this year have been domestic sectors such as construction (up 29.8% during the first three quarters), communications (26%), and agriculture and fisheries (14.9%), according the Central Bank. Only one sector, export-oriented free zones, posted a contraction (-5.4%).

..

Meanwhile, officials predict inflation of 6% this year, down from their previous forecast of 7.5%. The Central Bank has maintained a tight monetary stance in order to keep the currency stable and contain inflation despite an unfavourable global environment, marked by high petroleum costs and increases in international interest rates.

ViewsWire

[Don Juan]

It is inconcieveable to me as to why DR has not prioritized industrial output.
along with tourism, the for-export products made in DR can probably equal or surpass any other GDP earnings.
We need to generate a steady and constant flow of electrical energy to power industry and light up our cities. No energy,=no jobs,= no prosperity.

What part of that is so hard to understand?