Flag description: a centered white cross that extends to the edges, divides the flag into four rectangles-the top ones are blue (hoist side) and red, the bottom ones are red (hoist side) and blue; a small coat of arms is at the center of the cross
@Dominican Republic:Economy
Economy-overview: Economic reforms launched in late 1994 contributed to exchange rate stabilization, reduced inflation, and strong GDP growth in 1995-96. In 1996, there was increased mineral and petroleum exploration, and a new investment law that allows for repatriation of capital dividends has drawn more investment to the island. Upon coming to power in August 1996, President FERNANDEZ nevertheless inherited a trouble-ridden economy hampered by a pressured peso, a large external debt, nearly bankrupt state-owned enterprises, and a manufacturing sector hindered by daily power outages. In December, FERNANDEZ presented a bold economic reform package-including such reforms as the devaluation of the peso, income tax cuts, a 50% increase in sales taxes, reduced import tariffs, and increased gasoline prices-in an attempt to create a market-oriented economy that can compete internationally. Even though reforms are moving ahead at a slow pace, the economy grew vigorously in 1997, with tourism and telecommunications leading the advance. The government is working to increase electric generating capacity, a key to continued economic growth.
GDP: purchasing power parity-$38.3 billion (1997 est.)
GDP-real growth rate: 7% (1997 est.)
GDP-per capita: purchasing power parity-$4,700 (1997 est.)
GDP-composition by sector: agriculture: 15% industry: 22% services: 63% (1995)
Inflation rate-consumer price index: 10.9% (1997 est.)
Labor force: 2.3 million to 2.6 million by occupation: agriculture 50%, services and government 32%, industry 18% (1991 est.)
Unemployment rate: 30% (1996 est.)