High consumption sustains DR economy

[NewsWhore]

Dominican economic growth is based on high consumption, which is evident by the high levels of imports of goods and services, as well as raw materials and inputs, writes Esteban Delgado in an economic analysis published in today's Diario Libre. He reports that an analysis of the Central Bank Economic Report for 2006 shows that the Dominican economy is based on growth in communications, commerce, construction, finance and transport, all sectors that are high on the consumption side, rather than productive. He comments this contradicts the belief that countries need domestic savings and quality investments. He points out that the pillars of the Dominican economy are hard currency generators - tourism, industry free zone exports and remittances from expatriate Dominicans. He comments that as long as the country continues to generate enough hard currency, this model based on high consumption will be possible. But he warns that high consumption is only possible in a state of stability and exchange rate control, as has been the case so far.
See www.bancentral.gov.do (http://www.bancentral.gov.do) for the 2006 report.

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