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Ministry of Industry and Commerce alerts to decline of exports to GDP

Experts from the Ministry of Industry, Commerce and Small Business (MICM) have stressed the need to adopt strategic mechanisms for increased exports, given the decline of the participation of Dominican exports in the Gross Domestic Product (GDP). The Ministry is organizing the III Industry Congress to be held at the end of the year, as an institutional planning effort to consolidate government efforts by the Ministry of Industry and Commerce, the Center for Exports and Investment (CEI-RD), ProIndustria, the National Council of Export Free Zones, among others.

In the recent presentation, “Tell Me What You Produce, How And I Will Tell You If You Sell It,” Juan T. Monegro, deputy minister of industrial development and Miguel Palmers, sectorial specialist explained that in the past 25 years the Dominican economy has enjoyed extraordinary growth of on average 5.5%, beyond the regional average of 2.8%. During this period, while the GDP increased six fold, exports only tripled. In the case of the free zones, from a peak participation in 2003 of 21% of GDP, free zone exports today only represent 7.7% of GDP in 2016.

Monegro and Palmers say that in the Dominican Republic, industry has only a third participation in the growth, where most of this is construction and to a lesser extent manufacturing for the local market. The experts called for changes in the production system to favor value aggregation and that production be better linked to global value chains.

The study concludes that to advance in the right direction more and better public policies oriented to the development of productive capacities are needed along with logistics and trade facilitation for increased exports. The specialists consider the strategy can and should be more precise within a public-private dialogue focused on how to stimulate manufacturing in the country, including agro-industrial development.

This week, the Medina administration announced the start of the ProDominicana entity, under the CEI-RD to back exporters and attract increased investment.

Source: DR1, Mic

Aug 29, 2017

Category: DR News |

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Last updated November 19, 2017 at 12:49 AM
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