Dominican Republic Economy

The Dominican Republic economy is the second biggest one of the Caribbean. In a very similar way to other economies; it was based originally in agriculture and was later changed to other services. Another activity which was relevant to the sustentation of the country was mining. In just a couple of years the agrarian model shifted to a manufacturing and tourism economy.

The political instability of the Dominican Republic has also played a very important role in the economics of the country. Many believed that Dictator Rafael Leonidas Trujillo managed to eliminate the foreign debt and improved the quality of life of the average Dominican. Under his rule several public projects got accomplished and the currency remained stable. Others disagree and claim that even with all his achievements; a democratic government could have achieved a greater economical stability.

Local Produce in the Dominican Republic Economy

Even when the agriculture has been displaced by the manufacturing and tourism industry it still remains a source of profitable income for the country. The main crop products have been known to be sugar, coffee and tobacco. Sugar is the number one agricultural product in the country and the Dominican Republic is known to be the second largest producer of it the Caribbean. Near the year 2000 the production of sugar fell to approximately 350000 tons from 800000 tons that were produced 2 years before. One reason for the decline is the use of a big part of the land for other food crops instead of sugar.

The second one in order of production is the coffee. Around the year 1999 the total coffee production was close to 35000 tons, which is a little less than the 59000 tons they used to produce 20 years before. The third product is the tobacco which has been produced as much as coffee, it was around 35000 tons around 1999. The coconut oil is produced in the country as well.

Economy and Tourism

Modern tourism has impacted the Dominican Republic drastically to the point that the industry is easily the main leading foreign-exchange earner of the country. Some of the main touristic spots of the island like Punta Cana, Santo Domingo, Puerto Plata and Boca Chica are known to generate several millions of dollars every year. The all inclusive packages offered by most of the resorts in this country have attracted an incredible amount of visitors from the United States, Canada, Germany, Spain and other countries. 

One important advantage the Dominican Republic economy has over other Caribbean destinations is that it is inexpensive. A one week vacation in Punta Cana, for example, will cost significantly less than in almost any of the other Caribbean islands.

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