Dominican Republic

Introduction Key Economic Facts Risk Assessment (Provided by Coface) The Dominican Republic is a nation on the island of Income Level (by per capita Upper Middle Income Country rating: B - Political and economic uncertainties Hispaniola, part of the Great Antilles archipelago between GNI): and an occasionally difficult business environment can the Caribbean region and North Atlantic Ocean. It is Level of Development: Developing affect corporate payment behavior. Corporate default bordered by Haiti on the east and consists GDP, PPP (current international $206.49 billion (2019) mostly of rugged mountains with fertile $): probability is appreciable. valleys. The government system is a GDP growth (annual %): 5.05% (2019) Business Climate rating: B - The business environment is democratic republic; the chief of state and GDP per capita, PPP (current $19,227.72 (2019) mediocre. The availability and the reliability of corporate head of government is the president. The international $): financial information vary widely. Debt collection can Dominican Republic has a mixed economic system which External debt stocks, total $35,919,087,407.70 (2019) sometimes be difficult. The institutional framework has a few includes a variety of private freedom, combined with (DOD, current US$): centralized economic planning and government regulation. Manufacturing, value added (% 13.76% (2019) troublesome weaknesses. Intercompany transactions run of GDP): appreciable risks in the unstable, largely inefficient Current account balance (BoP, -$1.20 billion (2019) environments rated B. current US$): Strengths Inflation, consumer prices 1.81% (2019) (annual %): • Leading Caribbean tourist destination Labor force, total: 5,067,915 (2020) • Remittances from its diaspora Unemployment, total (% of 5.92% (2020) • Free-trade agreement with the United States total labor force) (modeled ILO estimate): (CAFTA-DR) and Economic Partnership agreement Location: Caribbean Imports of goods and services $24.85 billion (2019) with the EU Capital City: Santo Domingo (-4 GMT) (current US$): • Free zones (56% of goods exports in 2019) Chief of State: President Luis Rodolfo Abinader Exports of goods and services $20.52 billion (2019) • Institutional stability (current US$): Head of Govt.: President Luis Rodolfo Abinader Weaknesses Currency: Dominican Peso (DOP) GDP Composition % Agriculture Services Industry Manufacturing • Dependence on the U.S. economy Major Languages:

Spanish (official)

• Dependence on gold prices Primary Religions:

Roman Catholic 47.8%, Protestant 21.3%, other 2.2%, none 58 • Faulty electricity supply 29 28%, don't know/no response 5 14 • High levels of poverty and inequality / low fiscal .7% (2017 est.)

revenues (14% of GDP) Calling Code: 1-809 *Although Manufacturing is included in the Industry figures, it is also separately reported because it plays a critical role in economy. • Drug trafficking-related crime Voltage: 110 Rankings • Widespread corruption Key Websites Index Rank Corruption Perceptions Index 137 / 180 U.S. Embassy Main Government Page: minpre.gob.do Global Competitiveness Index 78 / 141 U.S. Embassy Santo Domingo Commerce Ministry: dominicanrepublic.com Global Enabling Trade Index 78 / 136 Av. Republica de Colombia #57 Investment Promotion cei-rd.gob.do Index of Economic Freedom 88 / 179 Santo Domingo Agency: International Logistics Performance Index (LPI) 87 / 160 Dominican Republic Inward FDI Potential Index 58 / 139 Phone: (809) 567-7775 KOF Index of Globalization 59 / 185 https://do.usembassy.gov Networked Readiness Index (NRI) 98 / 139 Open Budget Index 20 / 115

Country Memo Provided by: globalEDGE.msu.edu and EXPORT.GOV