- Home
- Dominican Economy
- Articles on the Economy
Articles on the Economy
Updated 20 August 2007 - Dominique Desruelle and Alfred Schipke
Central America has made substantial progress in regaining macroeconomic stability and has continued to integrate further both globally and at the regional level. The challenge now is how to entrench these gains, improve growth performance to significantly reduce poverty, and reduce vulnerabilities,including those that are associated with increased integration. This paper addresses some of these important issues. After reviewing recent developments, this chapter provides an overview of key policy issues facing. Central America: economic growth, fiscal issues related to pension reform and sovereign debt structures, the development of capital markets, and monetary policy. It also briefly discusses the progress that has been made with integration and regional policy coordination. The subsequent chapters analyze these key issues in more depth.
Jamaica Money Market Brokers (JMMB) has set sight on two Central American markets but is cagey about its plans ahead of research underway to determine entry.
But JMMB chief executive officer Keith Duncan told the Financial Gleaner in an interview that it's likely that he will be replicating strategy employed in Dominican Republic - which straddles the Caribbean and Central America - where the brokerage bought controlling stake in BDI America, on which it has spent US$5 million to acquire and outfit.
"By the end of the year 2010 we intend to be in two other territories," said Duncan.
The explorations are currently being done in Costa Rica, Honduras and El Salvador, with indications that Costa Rica is likely to be one of the two.
The level of investment is also to be determined but assuming JMMB intends to maintain spend at the same levels as when it entered Dom Rep - its investments in Central America may top US$10 million.
Economic slowdowns in the United States and Mexico result in lower U.S.-Latin American trade.
US trade with Mexico is slowing, affecting overall trade with Latin America, according to first half data. Here trucks at the US-Mexican border in Texas. (Photo: US Department of Transporation).
US lawmakers are increasingly voting against free trade with Latin America.
As the leading Democratic presidential candidates are voicing more opposition to free trade with Latin America, the record shows that U.S. lawmakers have followed the same trend.
While both the North American Free Trade Agreement (NAFTA) and the US free trade agreement with Chile were approved with strong majorities (in 1993 and 2003, respectively), the Dominican Republic-Central American Free Trade Agreement (CAFTA) barely got enough support to pass in 2005.
And new FTAs with Colombia and Peru - formally signed last year - have had to wait a considerable time before even being considered for a vote. The Peru FTA, for example, was actually completed as far back as December 2005, while the Colombia one was concluded in February 2006.
April 2007 www.imf.org
The World Economic Outlook (WEO) database contains selected macroeconomic data series from the statistical appendix of the World Economic Outlook report, which presents the IMF staff's analysis and projections of economic developments at the global level, in major country groups and in many individual countries. The WEO is released in April and September each year.
31 January, 2007 www.imf.org
The following item is a Letter of Intent of the government of Dominican
Republic, which describes the policies that Dominican Republic intends to
implement in the context of its request for financial support from the IMF. The
document, which is the property of Dominican Republic, is being made available on the IMF website by agreement with the member as a service to users of the IMF website.
2006 Updated Information on the Dominican Workforce
Independent surveys of current investors reveal that the Dominican labor force is the nation's principal economic asset. Employers characterize workers as diligent, highly trainable, dexterous and capable of utilizing new technologies.
Services and government (includes parastatal corporations) employ 35% of the work force. Agriculture employs 21%, and industry outside of the duty free zones employs 12%. Unemployment is estimated at approximately 16.4%.
The Dominican Labor Code, which dates back to June 1992, is a comprehensive piece of legislation which establishes policies and procedures for aspects of employer/employee relationships.
The standard workweek is 44 hours. The minimum wage is RD$6,400.00 for companies with capital of more than RD$500,000. The minimum wage for free zone industries is RD$3,227.00. Other minimum wages have been set for specific work classifications.
Temistocles Montas - Economic, Planning and Development Minister.
Los últimos años han sido buenos para la economía mundial y se proyecta un desempeño razonable en los próximos años. La economía mundial se desaceleró ligeramente en el 2005, en relación con el excelente desempeño del 2004. Sin embargo, un crecimiento de 4.9% refleja una importante expansión de la economía mundial.
Se espera que tanto para este año como para el 2007, el crecimiento económico mundial se mantenga próximo a los niveles del 2005. Aunque la economía norteamericana sigue siendo el principal motor del crecimiento económico mundial, China, India, Rusia y algunas otras economías en desarrollo cobran cada vez más importancia, debido a sus altos niveles de crecimiento.