EconomicEconomic
GeographyGeography
The economic geography of the Dominican Republic is
shaped by its strategic location in the Caribbean, diverse
natural resources, and key economic sectors. Situated
on the eastern part of Hispaniola, the country benefits
from a tropical climate, fertile plains, and mountain
ranges, making agriculture a cornerstone of its economy.
The fertile Cibao Valley is the agricultural hub,
producing exports such as sugar, coffee, cocoa, and
tobacco. Tourism is another major driver of the
economy, with world-famous destinations like Punta
Cana, Puerto Plata, and Santo Domingo attracting
millions of visitors annually. The country’s beaches,
resorts, and historical landmarks contribute significantly
to GDP, while natural resources like gold, nickel, and
bauxite support mining activities.
Manufacturing and industry, particularly in free
trade zones (FTZs), also play a critical role,
producing textiles, electronics, and medical
equipment for export. Urban centers like Santo
Domingo and Santiago are industrial and
commercial hubs, supported by a growing
services sector, including banking,
telecommunications, and IT outsourcing. The
Dominican Republic’s major trading partner is
the United States, and its ports, such as Caucedo
and Haina, facilitate trade. However, economic
activities are concentrated in urban areas,
leading to rural disparities. The economy also
faces challenges such as unemployment,
dependence on imported fuel, and vulnerability
to hurricanes, which threaten agriculture and
infrastructure. Despite these challenges, the
country remains a leader in the Caribbean due to
its diverse economy and growing global
connectivity.