Beer industry contributes RD$92,483 million annually to DR economy

Beer sector generates more than 51,000 jobs

The beer industry in the Dominican Republic has established itself as a key driver of the economy, not only for its contribution of more than 92 billion pesos during 2022, but also for its multiplier effect on production chains, the generation of jobs and the increase in government tax contributions.

This is according to the report “Analysis of the contributions of the beer industry to the Dominican economy and its multiplier effect”, prepared by the consulting firm DASA.

The document states that this sector has an impact on the generation of more than 3,000 direct jobs and almost 48,000 indirect jobs, through its impact on the acquisition of goods and services throughout the value chain.

“For every direct job in the brewing industry, 16 additional jobs are produced, due to the acquisition of local goods and services,” the report details.

In addition, for every peso of income in direct wages paid by the brewing sector, more than 4.6 in indirect wages are generated. Also, the annual salaries received by the employees of this sector reach 13,748 million pesos.

Likewise, the brewing industry generated fiscal contributions for the government for an approximate amount of 44,000 million pesos in 2022, as estimated in the report.

It details that the brewing industry has an impact on the activation and growth of different productive sectors nationwide, including the cardboard and paper industry, glass bottles, caps, crates, plastics, energy and fuels, entertainment and advertising, transportation and logistics, machinery and equipment maintenance services, among others.

Also noteworthy is the dynamism it injects into commerce in the grocery stores, which has an impact of between 28 and 33% of its sales. These figures show the importance of the brewing industry in the local retail trade and its consequent cascading effect on the economic and social development of the country.

Productive linkage

In addition to the 92,483 million pesos that the consulting firm DASA details that are injected into the economy by way of added value from the brewing sector, there is a productive linkage that exceeds 14,000 million pesos in purchases of domestic goods and services for this industry.

“Specifically, 35% of these purchases correspond to the manufacturing sector and the rest to services. Likewise, from 2019 to date, exports of beer products totaled $65 million,” the report says.

The study “Analysis of the contributions of the beer industry in the Dominican economy and its multiplier effect” highlighted how economic growth and legal stability in the Dominican Republic’s business climate constitute fundamental elements to maintain and attract investments in the brewing sector.

“Indeed, the Dominican economy, which is projected to have a 5.4% increase in Gross Domestic Product (GDP) by the end of 2024, is one of the most dynamic in the region and has a favorable environment for business development and company growth,” he said.

“This panorama gives rise to the opening of greater investments, more jobs, and the expansion of productive dynamics that generate well-being for all Dominicans,” concludes the DASA report.

It explains that, without a doubt, the prosperity of thousands of Dominicans is strongly linked to the productivity of the brewing industry, with a supply chain that empowers people and millionaire investments in sustainability projects that guarantee the current and future well-being of Dominicans.

 

Source:Diariolibre.com

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Dominican Republic Live Editor

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