Production of Dominican beer, cigarettes and rum – popularly called the “vices” falls
Santo Domingo.- Production of beer, cigarettes and rum –popularly called the “vices”- fell 20.5%, 17.5% and 1.1% in the first half respectively, the Central Bank reported Monday, for a 7.9% decline in that economic line.
Other products such as soft drinks posted a of 26.9% growth, the report says, but doesn’t specify what spurred the decline in beer, rum and cigarette production.
The decline was forecast by Dominican National Brewery CEO Franklin Leon in April, he when warned that once enacted, the tax reform would lead to a plunge in beer sales of more than 20%, compared with the same period last year.
Speaking at the National Palace after a meeting with president Danilo Medina, Leon said due to the economic situation, beer sales “aren’t as we’d like” but noted that “things are going well in the Brewery.”
Dominican breweries contribute 1.7% of GDP and account for 6.5% of tax revenue, despite the 1.1% decline in rum production, according to Central Bank figures.
During the first six months commerce didn’t march in step, falling 2.9%, compared with the 5.7% growth in the same months in 2012.
The Central Bank blames the fall on 5.5% lower marketable imports priced in dollars and a -1.2% contraction in the added value of local manufacturing.
Category: DR News |