You are here -allRefer - Reference - Country Study & Country Guide - Dominican Republic >

allRefer Reference and Encyclopedia Resource

allRefer    
allRefer
   


-- Country Study & Guide --     

 

Dominican Republic

 
Country Guide
Afghanistan
Albania
Algeria
Angola
Armenia
Austria
Azerbaijan
Bahrain
Bangladesh
Belarus
Belize
Bhutan
Bolivia
Brazil
Bulgaria
Cambodia
Chad
Chile
China
Colombia
Caribbean Islands
Comoros
Cyprus
Czechoslovakia
Dominican Republic
Ecuador
Egypt
El Salvador
Estonia
Ethiopia
Finland
Georgia
Germany
Germany (East)
Ghana
Guyana
Haiti
Honduras
Hungary
India
Indonesia
Iran
Iraq
Israel
Cote d'Ivoire
Japan
Jordan
Kazakhstan
Kuwait
Kyrgyzstan
Latvia
Laos
Lebanon
Libya
Lithuania
Macau
Madagascar
Maldives
Mauritania
Mauritius
Mexico
Moldova
Mongolia
Nepal
Nicaragua
Nigeria
North Korea
Oman
Pakistan
Panama
Paraguay
Peru
Philippines
Poland
Portugal
Qatar
Romania
Russia
Saudi Arabia
Seychelles
Singapore
Somalia
South Africa
South Korea
Soviet Union [USSR]
Spain
Sri Lanka
Sudan
Syria
Tajikistan
Thailand
Turkmenistan
Turkey
Uganda
United Arab Emirates
Uruguay
Uzbekistan
Venezuela
Vietnam
Yugoslavia
Zaire

Dominican Republic

Balance of Payments

Poor trade performance and a heavy debt burden caused the country's balance of payments to register severe deficits during the 1980s. In 1987 the overall deficit reached US$593 million, or roughly 11 percent of GDP. This deficit was financed by a draw down in reserves and a rollover of the oil debt owed to Venezuela and Mexico. The nation's current account was chronically negative; it had not registered an annual surplus for decades. Large merchandise trade deficits were the prime cause of current account deficits. After 1981, however, increased revenues from "invisibles" (tourism and remittances from abroad) reduced the current account deficit, which by 1987 stood at 6 percent of GDP. Remittances--cash transfers sent from the nearly 1 million Dominicans residing in the United States--were an increasingly important source of foreign exchange. In 1987, they were estimated to range from US$300 to US$800 million a year. Reduced interest payments on the country's foreign debt because of debt rescheduling also lowered the service debit on the current account. The country's capital account, like that of most Latin American countries in the 1980s, suffered from capital outflows precipitated by the debt crisis. This crisis essentially precluded new commercial bank lending to the Dominican Republic during the decade. Most new capital flows were registered in the form of official multilateral and bilateral aid and as foreign investment. The United States Department of Commerce estimated cumulative foreign investment at US$400 million in 1987, approximately half of which came from the United States. The nation was increasingly dependent on foreign assistance to stabilize its balance of payments, and its continued drawing on negative reserves placed it in a tenuous financial position as the decade came to a close.

Data as of December 1989


Dominican Republic - TABLE OF CONTENTS


Go Up - Top of Page

Make allRefer Reference your HomepageAdd allRefer Reference to your FavoritesGo to Top of PagePrint this PageSend this Page to a Friend


Information Courtesy: The Library of Congress - Country Studies


Content on this web site is provided for informational purposes only. We accept no responsibility for any loss, injury or inconvenience sustained by any person resulting from information published on this site. We encourage you to verify any critical information with the relevant authorities.

 

 

 
 


About Us | Contact Us | Terms of Use | Privacy | Links Directory
Link to allRefer | Add allRefer Search to your site

allRefer
All Rights reserved. Site best viewed in 800 x 600 resolution.