Dominican RepublicChapters
The Taino - indigenous inhabitants of Hispaniola prior to the arrival of the Europeans - divided the island into five chiefdoms and territories. Christopher COLUMBUS explored and claimed the island on his first voyage in 1492; it became a springboard for Spanish conquest of the Caribbean and the American mainland. In 1697, Spain recognized French dominion over the western third of the island, which in 1804 became Haiti. The remainder of the island, by then known as Santo Domingo, sought to gain its own independence in 1821 but was conquered and ruled by the Haitians for 22 years; it finally attained independence as the Dominican Republic in 1844. In 1861, the Dominicans voluntarily returned to the Spanish Empire, but two years later they launched a war that restored independence in 1865. A legacy of unsettled, mostly non-representative rule followed, capped by the dictatorship of Rafael Leonidas TRUJILLO from 1930 to 1961. Juan BOSCH was elected president in 1962 but was deposed in a military coup in 1963. In 1965, the US led an intervention in the midst of a civil war sparked by an uprising to restore BOSCH. In 1966, Joaquin BALAGUER defeated BOSCH in the presidential election. BALAGUER maintained a tight grip on power for most of the next 30 years when international reaction to flawed elections forced him to curtail his term in 1996. Since then, regular competitive elections have been held in which opposition candidates have won the presidency. Former President Leonel FERNANDEZ Reyna (first term 1996-2000) won elected to a new term in 2004 following a constitutional amendment allowing presidents to serve more than one term, and was later reelected to a second consecutive term. In 2012, Danilo MEDINA Sanchez became president; he was reelected in 2016.
Key indicators
- Area
- 48,670 km2
- Population
- 10,597,348 (July 2021 est.)
- Government type
- presidential republic
- Languages
- Spanish (official)
- GDP
- $78.845 billion (2020 est.)
- Growth rate
- -6.72% (2020 est.)
- HDI
- 88
- Capital
- Santo Domingo
Macroeconomic indicators
The Dominican Republic was for most of its history primarily an exporter of sugar, coffee, and tobacco, but over the last three decades the economy has become more diversified as the service sector has overtaken agriculture as the economy's largest employer, due to growth in construction, tourism, and free trade zones. The mining sector has also played a greater role in the export market since late 2012 with the commencement of the extraction phase of the Pueblo Viejo Gold and Silver mine, one of the largest gold mines in the world.For the last 20 years, the Dominican Republic has been one of the fastest growing economies in Latin America. The economy rebounded from the global recession in 2010-16, and the fiscal situation is improving. A tax reform package passed in November 2012, a reduction in government spending, and lower energy costs helped to narrow the central government budget deficit from 6.6% of GDP in 2012 to 2.6% in 2016, and public debt is declining. Marked income inequality, high unemployment, and underemployment remain important long-term challenges; the poorest half of the population receives less than one-fifth of GDP, while the richest 10% enjoys nearly 40% of GDP.The economy is highly dependent upon the US, the destination for approximately half of exports and the source of 40% of imports. Remittances from the US amount to about 7% of GDP, equivalent to about a third of exports and two-thirds of tourism receipts. The Central America-Dominican Republic Free Trade Agreement came into force in March 2007, boosting investment and manufacturing exports.
Source: The CIA World Factbook
IMF Statistics:
| Subject descriptor | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
|
Gross domestic product, constant prices Percent change (Units) |
12.272 |
4.858 |
2.409 |
5.352 |
4.952 |
|
Gross domestic product, current prices Percent change (Billions) |
94.458 |
113.873 |
119.966 |
127.356 |
136.300 |
|
Gross domestic product per capita, current prices Percent change (Units) |
8,962.314 |
10,711.156 |
11,186.956 |
11,773.566 |
12,491.628 |
|
Inflation, average consumer prices Percent change (Units) |
8.243 |
8.812 |
4.786 |
4.229 |
3.973 |
|
Volume of imports of goods and services Percent change (Units) |
18.088 |
15.819 |
-4.070 |
3.362 |
2.672 |
|
Volume of exports of goods and services Percent change (Units) |
26.017 |
15.498 |
-1.628 |
5.267 |
5.265 |
|
Unemployment rate Percent change (Units) |
7.384 |
5.293 |
6.200 |
6.000 |
6.000 |
|
Current account balance Percent change (Billions) |
-2.685 |
-6.327 |
-4.699 |
-4.667 |
-4.779 |
|
Current account balance Percent change (Units) |
-2.843 |
-5.556 |
-3.917 |
-3.665 |
-3.506 |
Estimates
Source: IMF Statistics
Relationships with Luxembourg
Existing conventions and agreements
Non double taxation agreement
In order to promote international economic and financial relations in the interest of the Grand Duchy of Luxembourg, the Luxembourg government negotiates bilateral agreements for the avoidance of double taxation and prevent fiscal evasion with respect to Taxes on Income and on fortune with third countries.
None
Air Services agreement
None
Further information
Foreign Trade
The Statec Foreign Trade statistics provide information on the trade of goods - by product and by country. This information is collected respectively through the INTRASTAT declaration and on the basis of customs documents.
You can see the statistics on the website of the Statec.
Contact Point in Dominican Republic
Luxembourg is represented by Ambassade Royale des Pays-Bas à St Domingue
Source: Ministry of Foreign Affairs of Luxembourg
Country risk as defined by Office du Ducroire for Dominican Republic
Ducroire is the only credit insurer covering open account deals in over 200 countries. A rating on a scale from 1 to 7 shows the intensity of the political risk. Category 1 comprises countries with the lowest political risk and category 7 countries with the highest. Macroeconomics experts also assess the repayment climate for all buyers in a country.
Link: Ducroire Office - Country Risk for the Dominican Republic