Hector Valdez Albizu, governor of the Central Bank was the keynote speaker at the Dominican Association of Exporter luncheon yesterday. Valdez Albizu shared with the group the most recent economic statistics of the country and relayed a forecast that total exports would reach US$10 billion in 2014. He said that the economy as detailed in the latest economic reports had grown by 5.2% while the country’s accumulated inflation rate was calculated to be 1.93% in the first half of the year.
The Central Bank Governor said that if the current trends in economic growth continue for the rest of the year, the Dominican Republic’s economy will easily meet the 5% annual growth as forecast by the Economic Commission for Latin America and the Caribbean (ECLAC). This is double the 2.5% average annual growth rate forecast for the Latin American and Caribbean region for 2014.
Valdez Albizu told his audience that Dominican exports had tripled from 2000 to 2013, primarily due to non-traditional and mining exports, and contributions made by the export manufacturing zones and tourism. He said there have been advances in diversifying exports and opening new markets.
“We are talking about organic and conventional fresh and processed fruits and vegetables, including bananas, avocados, mangos, melons, dry coconuts, and peppers as well rum and beer. Our capacity to increase exports is not limited to food items, we can also become important exporters of cement, steel, plastics, cosmetics and fertilizers, among others,” he mentioned.
Valdez Albizu stressed that the new environment that is conducive to exports should motivate other local industries to export their products and services.
He reported that ferronickel exports that were 24.6% of total national exports in 2000, have been supplanted by gold, which accounted for 26% of exports in 2013. The total value of goods exported in the first half of 2014 was estimated to be US$5.00 billion, surpassing the US$4.82 billion of exports in the first half of 2013.
Valdez revealed that in the first half of the year tourism receipts were US$2.98 billion, up 11.7%. Remittances tottaled US$2.26 billion, up 10.2%. Foreign Direct Investment increased to US$1.13 billion, up 15.1% compared to the same period in 2013.
Nevertheless, Valdez Albizu said the challenge is still to create an export culture that will turn the Dominican Republic into a regional export leader so the country can gain access to 900 million consumers through the European Union/EPA agreement and United States and Central America/DR-CAFTA agreement.
Read more in Spanish: http://www.bancentral.gov.do/notas_bc/2014/08/06/519/gobernador-banco-central-informa-exportaciones-totales-de-bienes-superaran-los-us10000-millones-en-2014