Dominican Republic GDP growth 2nd-best in Latin America
Miami (Latinvex).- The Dominican Republic is expected to post Latin America’s second-best GDP growth this year, according to a Latinvex analysis of new estimates from the International Monetary Fund (IMF).
The Dominican economy will likely expand by 5.3 percent, which compares with 4.6 percent last year. The increase this year will be twice the rate seen in 2011 and 2012.
While Latin America is generally seeing an economic slowdown the Caribbean country is expected to post its best economic performance since 2010.
The Dominican GDP expansion is driven by continued strong tourism revenues and a surge in mining exports, especially by Canada-based Barrick Gold.
Barrick’s export success also has led to the Dominican Republic becoming the sixth-largest Latin American exporter to Canada and Canada’s seventh-largest trade partner in Latin America, according to a Latinvex analysis earlier this year.
Although it’s the country’s largest foreign investor, Dominican president Danilo Medina has treated Barrick as a public enemy, forcing it to pay an additional US$1.5 billion in royalties in violation of an existing contract, while the Dominican Customs treated the company as a criminal company.
As a result, the Dominican Republic saw the worst decline in Latin America on the latest annual global survey of mining executives from the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.
Category: DR News |