B&R Dominican Economic Report March 2009
FEB09 Monthly Mean Dominican Peso Official Exchange Rate
DOP Fluctuation
USD 35.5580 0.53%
EUR 44.4463 -3.17%
JPY 0.3730 -1.40%
CNY 5.2892 0.37%
FEB09 Monthly Mean Price of Crude Oil (Spot market FOB)
USD Fluctuation
WTI - Cushing, OK 39.09 -6.28%
Brent - Europe 43.32 -0.28%
FEB09 Monthly Mean Price of Refined Oil Products
DOP Fluctuation
Premium Gasoline 122.00 1.64%
Regular Gasoline 111.85 1.68%
Premium Gasoil (0.3%) 105.00 -1.18%
Regular Gasoil 100.00 -0.65%
FEB09 Yearly Growth Import Container Volume to Dominican Ports
FEB08 Import Inflow FEB09 Import Inflow Growth
14584 11895 -18.44%
FEB09 Yearly Growth Export Container Volume from DP World Caucedo
FEB08 Export Outflow FEB09 Export Outflow Growth
2121 2130 0.42%
Business and Economic News
Dominican Republic’s public debt grew more than 20% in 2008
Throughout 2008, Dominican Republic’s public sector liabilities surged by USD 1.74 billion, reaching USD 10.36 billion. The country’s internal and external public debt totalled USD 8.54 billion to December 21, 2007; consequently, public debt posted a 2008 yearly growth of 21.3%. The public debt total for 2008 (ie. USD 10.36 billion) represents a 22.5% of Dominican GDP. 80.12% of Dominican public debt (ie. USD 8.3 billion) is owed abroad. (Source: Dominican Today)
Business leaders praise lower interest rates
Leaders from construction, agriculture and foodstuff retail business associations have welcomed cheerfully state-owned bank Banco de Reservas’ (aka Banreservas) more than 5% interest rate reduction in most of their loans in response to Dominican Central Bank’s measures to increase money supply. Banreservas’ interest rate on mortgages of up to DOP 12 million was lowered to just 15%. The presidents of the Residential Building Promoters and Constructors Association (ie. ACOPROVI), Mr Jaime González; the Agribusiness Board (ie. JAD), Mr José Ramón Peralta; and the Provision Retailers Council (ie. CODEPRO), Mr Rafael Santos – the aforesaid business leaders have highlighted the widespread benefits this rate cut will bring about. Mr Santos emphasised on the positive reverberations this commercial measure from Banreservas ought to produce given it would force the other retail and commercial banks to do the same. (Source: Dominican Today)
Construction sector’s stall sends building materials’ sales figures down 30%
Sales of building materials tumbled 30% in Q1, the Dominican Hardware Stores Association says. Said entity’s president, Mr Idelfonso Vázquez that the steepness of the aforementioned sales drop has not budged notwithstanding the price cuts performed by the hardware stores he represents. In a press conference given by the association, they underlined how 100 pounds of steel reinforcement bars have fallen around 5% to DOP 1600 whereas the price of a bag of cement has been reduced ten pesos to DOP 240. On a side note, Mr Vázquez announced the 10th International Hardware Expo 2009, to take place on March 12-15, during which the public can see and examine the latest offers in construction equipment. (Source: Dominican Today)
Santiago-based free zone firm to fire 1000 labourers
Santiago-based FM Industries announced on 10-Mar-09 that it is poised to lay off 1000 of its employees though it will continue to operate with just 500. In its statement, the free zone firm asserted that the job cuts will allow it to continue operating and to satisfy its commitments with customers and suppliers. FM Industries, which has manufactured US branded trousers in the Víctor Espaillat Mera Industrial Free Zone Park since 1987, stated that it expects the economic adversities that fuelled such an unpopular decision to be transitory and expressed its strong willingness to reinstate the laid off personnel once conditions improve. (Source: Dominican Today)
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