Economy of Dominican Republic

In 2018, the Dominican Republic produced 644 thousand tons of avocado (it is the 2nd largest producer in the world), 1 million tons of papaya (it is the 4th largest producer in the world), 5.2 million tons of sugarcane, 2.1 million tons of banana, 85 thousand tons of cocoa, 442 thousand tons of palm oil, 407 thousand tons of pineapple, 403 thousand tons of coconut, 627 thousand tons of rice, 160 thousand tons of cassava, 136 thousand tons of orange, in addition to from smaller productions of other agricultural products such as potato, lemon, melon, onion and yam.<br>With almost 80% of the total land area suitable for crop production and about 17% of the labor force engaged in farming, agriculture remains the primary occupation, accounting for 11% of GDP in 2001. Value of agricultural output grew at an average annual rate of 7.1% during 1968-73, but since 1975 the sector has been hampered by droughts (1975, 1977, and 1979), hurricanes (in 1979 and 1980), and slumping world prices and quota allocations for sugar (since 1985). In 1999, agricultural production was 0.4% higher than during 1989 - 91. The fertile Cibao Valley is the main agricultural center. In 1998, arable land totaled 1,020,000 hectares (2,500,000 acres); with land under permanent crops at 480,000 hectares (1,200,000 acres).

In 2019, the country was the 9th largest world producer of nickel. The country had almost zero production of gold until 2011, where it grew exponentially. In 2016 the country produced almost 38 tons. The country had almost zero production of silver until 2008, where it grew exponentially. In 2017 the country produced 147 tons.<br>Ferronickel was the country's leading export commodity and third-leading industry. Nickel is mined at Bonao. In 2000, nickel production was 39,943 tons, ranking tenth in the world, a decrease from 49,152 in 1997. Currently the most important mineral export is gold.<br>Production of gold in the Pueblo Viejo mine is the largest gold producing mine in Latin America, and fourth most productive mine in the world producing a total of 30,100 kg of gold in 2018. The extraction by a foreign company of gold at one of the largest mines in the Western Hemisphere has startled and concerned a part of the country who believe that the natural resource should be extracted by local companies and not foreign. Some groups began to protest against Barrick Gold in 2009 and 2010. In 2019 gold is one of the largest exports of the country totaling $1.6 billion and has helped to balance the commodity current account balance.<br>Production of bauxite, traditionally the principal mining product, ceased in 1992. The Aluminum Co. of America (Alcoa) mined bauxite between 1959 and 1983, when it turned its concession over to the state. Production in 1991 dropped 92% from the previous year, as a presidential decree suspended mining operations at the largest mine, in response to increasing fears of deforestation, although reforestation of mined areas was in progress. Output averaged 1 million tons each year.<br>The country was one of the few sources of amber in the Western Hemisphere. Salt Mountain, a 16 km block of almost solid salt west of Barahona, was the world's largest known salt deposit. There were also large deposits of gypsum near Salt Mountain, making the Dominican Republic one of three sources of gypsum in the Caribbean. The country also produced hydraulic cement, limestone, marble, and sand and gravel. Substantial lignite deposits were found in the early 1980s. Deposits of copper and platinum are also found in the country.

Since the mid-1980s the tourism sector has become one of the country's most important sources of foreign exchange, and more popular tourist destinations. The country is famous for its favorable location in the Caribbean, tropical climate, beaches, and the restored Spanish colonial architecture. Many foreign investors have and continue to be encouraged to invest here to build and expand resorts and airports around the coasts.[35] During this same period, tourism displaced sugar as the main source of the country's earnings, and by 1997 it was generating more than half of the country's total foreign exchange.[36] In 2019 it generated one-third of the total foreign exchange for the country.<br>Tourism is the single biggest revenue earner, growing from humble beginnings in 1980 to more than $7.4 billion by 2019.[19] Successive governments have invested heavily in tourism development, creating upgraded airports and other infrastructure. The number of tourist amounted to 6.4 million tourists arriving in the country in 2019. Most come from Europe, with about 25 percent originating from the United States or Canada. The country now has almost 70,000 hotel rooms, more than any other Caribbean country. About 50,000 Dominicans are directly employed in this sector, mostly working in hotels, and another 110,000 are indirectly employed as taxi drivers, tour guides, or tourist-shop staff. Most tourists visit the Dominican Republic on account of its beaches, but there is an expanding eco-tourism and outdoor activity sector, focused on the country's mountains and wildlife.

Retail activity in the Dominican Republic takes many forms, from U.S.-style supermarkets and shopping malls in Santo Domingo to rural markets and tiny family-run corner stores in villages. A small but affluent middle class can afford to shop at the former, while the lower-income rural community resorts to buying small amounts of daily essentials from general stores (these small stores often double as pubs). In an attempt to regulate the retail sector, the government has recently reformed taxation laws, so that small shops pay taxes on a regular monthly basis. Many transactions, however, go unrecorded.