branch (right) is at the center of the cross; above the shield
a blue ribbon displays the motto, DIOS, PATRIA, LIBERTAD (God,
Fatherland, Liberty), and below the shield, REPUBLICA DOMINICANA
appears on a red ribbon

Economy Dominican Republic

Economy - overview:
The Dominican Republic is a Caribbean representative democracy that
enjoyed strong GDP growth until 2003. Although the country has long
been viewed primarily as an exporter of sugar, coffee, and tobacco,
in recent years the service sector has overtaken agriculture as the
economy's largest employer due to growth in tourism and free trade
zones. Growth turned negative in 2003 with reduced tourism, a major
bank fraud, and limited growth in the US economy (the source of
about 80% of export revenues), but recovered in 2004-06. With the
help of strict fiscal targets agreed in the 2004 renegotiation of an
IMF standby loan, President FERNANDEZ has stabilized the country's
financial situation. Although the economy continues to grow at a
respectable rate, high unemployment and inflation remain important
challenges. The country suffers from marked income inequality; the
poorest half of the population receives less than one-fifth of GNP,
while the richest 10% enjoys nearly 40% of national income. The
Dominican Republic's development prospects improved with the
ratification of the Central America-Dominican Republic Free Trade
Agreement (CAFTA-DR) in September 2005.

GDP (purchasing power parity):
$73.74 billion (2006 est.)

GDP (official exchange rate):
$19.91 billion (2006 est.)

GDP - real growth rate:
7.2% (2006 est.)

GDP - per capita (PPP):
$8,000 (2006 est.)

GDP - composition by sector:
agriculture: 11.2%
industry: 30.6%
services: 58.2% (2005 est.)

Labor force:
3.896 million (2006 est.)

Labor force - by occupation:
agriculture: 17%
industry: 24.3%
services: 58.7% (1998 est.)

Unemployment rate:
16% (2006 est.)

Population below poverty line:
25%

Household income or consumption by percentage share:
lowest 10%: 2.1%
highest 10%: 37.9% (1998)

Distribution of family income - Gini index:
47.4 (1998)

Inflation rate (consumer prices):
8.2% (2006 est.)

Investment (gross fixed):
15.5% of GDP (2006 est.)

Budget:
revenues: $5.852 billion
expenditures: $5.947 billion; including capital expenditures of $1.1
billion (2006 est.)

Public debt:
45.6%