NewsWhore
07-01-2008, 05:20 PM
The National Council for Private Business (CONEP) has released its "diagnosis" of the Dominican economy. According to the report, "The Dominican Economy: Pending macroeconomic and sectorial challenges", economic growth has been unbalanced. "Evidently, we are experiencing very asymmetrical growth, in that sectors that drive the economy and should be growing aren't doing so."
The report found that commerce (businesses for the most part based on imports), finance and communications were the growth sectors, with 52% growth of the GDP from 2000-2007. On the other hand, productive sectors, such as industry, mining, farming, free zones, construction and tourism together only grew 23.6%. The report points out that workers in the informal sector now make up 56% of the labor force. CONEP stresses that the high cost and relatively low reliability of power service continue to be the greatest obstacles to doing business in the DR.
The study cited increased imports and lack of competitiveness in the productive sectors as problematic. The report also describes the growth as regionally asymmetrical because most of it is concentrated in Santo Domingo. Unbalanced growth is also reflected in increased unemployment.
According to CONEP there is a lack of concern by the state in matters of social development and infrastructure. This apathy is reflected in increased foreign debt, the quasi-fiscal debt and the deficits incurred by government subsidy programs. The study calls for increased spending on education, health, justice, public order and infrastructure because the DR is among the three countries in Latin America that invest least in social costs. The study also investigates the burden of debt payment on the economy. According to the diagnosis, 29% of all revenue collected by government goes towards debt payment and the subsidy to the energy sector, which has totaled RD$12.3 billion from January to April, further hindering economic growth.
More... (http://www.dr1.com/index.html#6)
The report found that commerce (businesses for the most part based on imports), finance and communications were the growth sectors, with 52% growth of the GDP from 2000-2007. On the other hand, productive sectors, such as industry, mining, farming, free zones, construction and tourism together only grew 23.6%. The report points out that workers in the informal sector now make up 56% of the labor force. CONEP stresses that the high cost and relatively low reliability of power service continue to be the greatest obstacles to doing business in the DR.
The study cited increased imports and lack of competitiveness in the productive sectors as problematic. The report also describes the growth as regionally asymmetrical because most of it is concentrated in Santo Domingo. Unbalanced growth is also reflected in increased unemployment.
According to CONEP there is a lack of concern by the state in matters of social development and infrastructure. This apathy is reflected in increased foreign debt, the quasi-fiscal debt and the deficits incurred by government subsidy programs. The study calls for increased spending on education, health, justice, public order and infrastructure because the DR is among the three countries in Latin America that invest least in social costs. The study also investigates the burden of debt payment on the economy. According to the diagnosis, 29% of all revenue collected by government goes towards debt payment and the subsidy to the energy sector, which has totaled RD$12.3 billion from January to April, further hindering economic growth.
More... (http://www.dr1.com/index.html#6)