Thursday, June 1, 2023

What are the factors that most affect competitiveness in the DR?

The cost of raw Materialsunfair competition and the low level of economic activity were evidenced as the three factors that most affected the competitiveness in the quarter January-March 2023, according to the Industrial Situation Surveyin which the “incidence index on factors that affect competitiveness” is established.

The cost of raw material has been in that position for ten quarters (two and a half years, from October-December 2020), although its incidence level has been dropping from 31% in the first quarter of last year to 27% in the first quarter. of the current year (2023).

The Industrial Situation Survey is carried out quarterly by the Association of Industries of the Dominican Republic (AIRD). It determines, in order of importance, which are the main factors that affect the competitiveness of the industrial sector in a particular quarter.

“Unfair competition” ranked second with an incidence of 16%. He was in that position all of 2022 and the first quarter of this year (five quarters in the same position). The “low level of economic activity” continued to increase in importance, rising from fifth place in the April-June 2022 period to third place among the factors that affect competitiveness, with an incidence of 10%. He has been in third position for three quarters.

The “competition from imported products” went from eighth place in the October-December 2022 quarter to fourth place in January-March 2023, with an incidence of 9%, while the “cost and supply of electric power” has been in fifth position for three consecutive quarters.

Altogether, there are fifteen factors that are considered key to a competitive national industry.

ANDl Graph 1 shows the evolution of the main factors from the second quarter of 2016 to June 2022.


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