Strengthen export sector

[NewsWhore]

Economist Roberto Despradel writes in today's El Caribe that the DR could feel the present economic crisis more than its own financial crisis in 2003 and 2004, and needs to foster conditions to strengthen its export sector. He explains that the former crisis was internal, and foreign exchange sectors, namely goods and services exports, including tourism, were not affected. He explains that this is what enabled the country to recover rapidly. But he highlights that the present global situation is completely different. He explains that 84% of what we export is shipped to the US or the European Union. Furthermore, 72% of our tourists come from these two areas. "As a country, our foreign exchange receipts depend heavily on those two economies," he explained. Despradel feels that even the decline in fuel prices that will bring relief to the balance of payments, will shield us from the effects the country will suffer from the slump in the economies of the US (-0.7% GDP forecast) and Europe (-0.8% GDP forecast) for 2009. He points out that that this situation coincides with rules under DR-CAFTA that will not allow the government to subsidize exports after 31 December 2009. He says the time is right for promoting substantial legal and institutional framework changes for the export sector that may encompass companies within and beyond the free zone regime. "This situation will require greater attention of all, and increased focus of the government in the development of unified policies to promote export," he says.

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