The Central Bank third quarter report on the economic performance from January to September indicates the economy grew 1.8% during that period. Third quarter growth alone was 5.5%, offsetting the slow start to the year. The most dynamic sectors were communications (22.7%), electricity and water (21.1%), government (7.7%), farming (4%), and finances (2.8%). The hotel industry declined 0.2%, construction was down 1.2%, transportation 2.2%, manufacturing 2.3, commerce 3.5% and mining 3.5%. For more information, see Central Bank quarterly report

Once predominantly an exporter of raw materials, the country has been transformed into a service supplier, the most dynamic being tourism, followed by light manufacturing from the industrial free zones. The Gross Domestic Product of the nation grew 8.5% in 2000 (up from 8.3% in 1999), the highest in Latin America and the Caribbean. Growth for 2001, nevertheless, is expected to drop to 6% as the economy reflects the lull in the US economy, the rise in the oil prices and the domestic slow down in part occasioned by new taxes placed in effect by the Mejia administration to better distribute wealth. Inflation in 2000 was 8.1%, up from 5% in 1999.

According to preliminary statistics, in 2000 the best performing sectors were: communications (15.7%), tourism (15.7%), transportation (11.9%), electricity/water (11%), manufacturing (9%), mining (9.2%), and commerce (8.4%). The fiscal deficit widened to 1.5% of GDP, while the rate of inflation, at 9.02%, was higher than in 1999. Capital inflows were not sufficient to offset the deficit on the current account (6% of GDP and 3 percentage points above the projected level), resulting in a negative overall balance-of payments position. The fiscal reform project contained in the Tariff Reform and Fiscal Compensation Act has raised tax on the transfer of goods and services (ITBIS) from 8% to 12%, expanded its scope, changed the excise tax rate and levied new taxes on non-essential items. 
A new tax on gross income of 1.5% for companies making more than RD$6 million a year was instated in January 2001. Smaller companies pay up to 0.75% tax on gross income. That is, regardless of income levels, all companies in the DR need to pay the income tax. 

In current terms, the Gross Domestic Product (GDP), expressed in Dominican currency as RD$322,866 million, grew by 16% in 2000, up from RD$278,163 million in 1999. 

In its Latin American Prospects 2001 report, the Economic Commission for Latin America and the Caribbean (ECLAC) has revised its January forecast of 6% growth rate for the DR to 4%. This is down from 7.8% in 2000 and 8.2% in 1999.

In the report, the organization revises growth forecasts for Latin American countries downward in general, reflecting the decline in the US economy which has lowered demand for the region's products. The report is available on the organization's web page.

Overall, current projections from ECLAC indicate that annual regional growth will reach 3% in 2001, one percentage point less than in 2000. This scenario assumes that the US economy won't head into a full recession during the second half of the year. As a result, unemployment will remain at the relatively high levels typical of the past two years and could rise even further in some countries. If conditions in the US economy turn around, the region should grow at approximately 4% in 2002.