DR 6th on regional globalization index
The Dominican Republic has dropped to sixth place in the Latin American Globalization Index compiled by Latin Business Chronicle. The DR ranked second last year. This significant slip is explained by the fact that the DR's trade, tourism receipts and remittances as a percentage of GDP in 2005 fell compared to 2004, while the country boosted its Internet penetration slightly. According to Latin Business Chronicle, the decline in scores was largely due to GDP growing faster than trade, tourism receipts and remittances. Last year, the Dominican economy expanded by 9.3%, the highest growth rate in Latin America along with Venezuela. Despite this decline, the DR continues to be the Latin American leader in terms of tourism receipts as a percentage of GDP.
The DR was the only country out of the six DR-CAFTA signatories that did not improve its score last year. The DR-CAFTA signatory countries achieved an average score of 11.05, which was better than the Andean Community (8.17) and Mercosur (7.12).
The 19-country index looks at six factors that measure a country's links with the outside world. These are exports of goods and services as a percentage of GDP, imports of goods and services as a percentage of GDP, foreign direct investment as a percentage of GDP, tourism receipts as a percentage of GDP, remittances as a percentage of GDP and Internet penetration.