Commodities - Dominican Republic

Dominican Republic

The nominal value in the Commodities market is projected to reach US$157.20bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.29% resulting in a projected total amount of US$203.40bn by 2029.
The average price per contract in the Commodities market amounts to US$0.23 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in the United States (US$53,690.00bn in 2024).
In the Commodities market, the number of contracts is expected to amount to 815.50k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Commodities market in Dominican Republic has been experiencing notable developments in recent years. Customer preferences in the Commodities market in Dominican Republic are shifting towards more diverse investment options, with a growing interest in financial derivatives.

Investors are increasingly looking for ways to diversify their portfolios and manage risk, leading to an uptick in trading activities in the Commodities market. Trends in the market show a rise in the trading volumes of Commodities derivatives in Dominican Republic. This trend is driven by a combination of factors such as increasing awareness about the benefits of Commodities trading, advancements in technology making trading more accessible, and the desire for higher returns in a low-interest-rate environment.

Local special circumstances in Dominican Republic, such as the growing economy and improving financial infrastructure, are contributing to the development of the Commodities market. The government's efforts to promote investment and financial market growth are also playing a role in attracting more participants to the Commodities market. Underlying macroeconomic factors, including stable economic growth, low inflation rates, and a favorable regulatory environment, are providing a conducive backdrop for the expansion of the Commodities market in Dominican Republic.

These factors are boosting investor confidence and creating opportunities for market growth and innovation in the Commodities sector.

Methodology

Data coverage:

Figures are based on commodity derivatives, their notional value, the number of contracts traded, the open interest (outstanding contracts at the end of a year), and the average value of a contract.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use market research & analysis, and data of World Bank, as well as the World Federation of Exchanges. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus such as GDP, wealth per capita, and the online banking penetration rate. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita an the online banking penetration rate.

Additional Notes:

The market is updated twice per year in case market dynamics change.