Friday, June 2, 2023

Dominican exports fall 4% in the first four months of 2023

The statistics on exports Dominicans are measured by their value and not by the volumes exported. For that reason, if the prices are high, even if the quantity sold does not increase, the indicator will mark an increase.

However, when prices start to decline, then you notice a reduction in values exported, which is more serious when, as at present, less merchandise is also being sold abroad.

In its most recent statistical report, the General Directorate of Customs (DGA) shows a 4% drop in the total values ​​exported during the first four months of this year, going from US$4,126.3 million in the first four-month period of 2022 to US$3,961.5 million in the same period this year.

National exports and free zones

The situation of the export sector is more serious in relation to national products, since in January-April of this year US$1,453.8 millionthat is almost US$155 million less (9.6%) than the US$1,609.3 million exported in the same period of 2022.

One of the reasons for the drop of national exports is the reduction in gold sales volumes, which although prices are rising in the international market, its extraction in the country has decreased.

As soon as free trade zone, although it has not suffered a decrease as large as national exports, they also show a downward trend. In January-April 2022, they were exported $2,517 million, but in the same period of this year the value of sales was US$2,507.7 million, for a reduction of only 0.3%; which is little, but contrasts with the growth it had been experiencing in previous years.

During the past full year, the total exportswhich include nationals and free zones, reached the sum of US$12,390.9 million, which implied an increase of 6.4% compared to the US$11,644.5 million sold abroad in 2021.

This result was presented by the government authorities as a achievementbecause it was attributed to greater support for the exporting sectorsboth local products and free zones.

But more than the result of incentive policies to sales abroad, this growth was influenced by increases in the prices of goods both in the local market and abroad. Without there having been an increase in the volumes exported, the price increase marks a positive result in exports, since they are measured by the value of sales and not by the number of items that are demanded abroad.

This year, although they remain high inflationary levels Worldwide, there is a trend towards price stability and a reduction in some products, which is reflected in sales values.

The Dominican export sector has traditionally been laggingespecially that of national products, where there is no growth beyond the impact of gold, which represents practically a quarter of the sales. When the price of gold rises internationally, its exports have a positive impact on the indicator of national exports.

But the rest national goods They do not show growth, because local producers are not very inclined towards conquering foreign markets, beyond that of Haiti, where quality requirements are minimal.

Regarding exports, the best results They are products from free zones, which represent just over 60% of the total exported and are growing.

The limitation It is that the sales of products from free zones, although they are counted as exports, are not the result of attracting local goods in foreign markets, but of foreign companies that produce them here, but with the seal of their countries of origin.

Less collection

Just as the value of exports has been reduced due to the price dropsince they are not measured in volume, there has also been a drop in State collections, through the General Directorate of Customs (DGA).

In the first quarter of this year, the DGA collected RD$69,992.8 millionthat is 1.5% less than the RD$71,111.6 million that entered in the same period of 2022. The reason is that the prices of some products and the rates of the shipment freight they have decreased in the international market, therefore, applying the same tariff rates, there is a drop in revenue.

For this year, the authorities of the Ministry of Finance have programmed an increase in Customs revenue in the order of 12% over what was collected last year. In the first four months of this year, that institution had to collect at least 79.645 million, for which reason it fell short of just over RD$8.500 million. This drop has been partly offset by collections from the General Directorate of Internal Taxes (DGII), which has received more than estimated.


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