Economy—overview: Economic reforms launched in late 1994 contributed to exchange rate stabilization reduced inflation and strong GDP growth in 1995-96. In 1996 there was increased mineral and petroleum exploration and a new investment law that allows for repatriation of capital dividends has drawn more investment to the island. Upon coming to power in August 1996 President FERNANDEZ nevertheless inherited a trouble-ridden economy hampered by a pressured peso a large external debt nearly bankrupt state-owned enterprises and a manufacturing sector hindered by daily power outages. In December FERNANDEZ presented a bold economic reform package—including such reforms as the devaluation of the peso income tax cuts a 50% increase in sales taxes reduced import tariffs and increased gasoline prices—in an attempt to create a market-oriented economy that can compete internationally. Even though reforms are moving ahead at a slow pace the economy grew vigorously in 1997 with tourism and telecommunications leading the advance. The government is working to increase electric generating capacity a key to continued economic growth.
GDP: purchasing power parity—$38.3 billion (1997 est.)
GDP—real growth rate: 7% (1997 est.)
GDP—per capita: purchasing power parity—$4 700 (1997 est.)
GDP—composition by sector: agriculture: 15% industry: 22% services: 63% (1995)
Exports: total value: $815 million (f.o.b. 1996) commodities: ferronickel sugar gold coffee cocoa partners: US 45% EU 34% Canada Japan Puerto Rico (1995)
Imports: total value: $3.7 billion (f.o.b. 1996) commodities: foodstuffs petroleum cotton and fabrics chemicals and pharmaceuticals partners: US 44% EU 16% Venezuela 11% Netherlands Antilles Mexico Japan (1995)
