April closed with positive numbers in farm, manufacturing and tourism sectors in the Dominican Republic. Commerce experienced a decline.
Farm produce
The Ministry of Economy’s Panorama report for April reveals that farm exports from January to April were up 11.7% compared to the first third of the year in 2023.
Farm produce exports were up 59.5% in April, reaching US$111.3 million. Exports through April 2024 were US$290.9 million, up 11.7%. The increase is attributed to the rising export value of tobacco exported to China and Nicaragua and raw cacao exports to the United States as well as new exports of eggs to Cuba and the United States. Loans to the farm production were up 8.6%.
Manufacturing
Likewise, free zone exports for the same period were up 11.7%, with local manufacturing exports up 2.7%. Overall, the demand for manufactured products grew 12.9% in April.
The real value of demand for manufactured products in the Dominican Republic reached RD$116,425.3 million in April, representing a 12.9% year-over-year increase. This positive performance is primarily attributed to the strong growth in both free zone manufacturing exports and local manufacturing operations, which experienced increases of 32.4% and 5.6%, respectively, in real terms. Local manufacturing exports also exhibited a notable increase of 34.4% during the month.
On an accumulated basis, the indicator has reached RD$449,866.6 million, surpassing the value recorded during the same period in the previous year by 6.9%. This growth is driven by the robust performance of local manufacturing operations, which amounted to RD$317,490.2 million, reflecting a 5.8% year-over-year increase.
Free zone exports, on the other hand, stood at RD$106,545.3 million for the year-to-date period, marking an 11.7% increase compared to the first four months of the previous year. This favorable outcome is primarily attributed to the expansion in the export value of medical instruments (7%) and jewelry (0.9%).
The overall expansion observed during the first four months was partly fueled by the rising external demand for locally manufactured goods, which experienced a 2.7% increase. During this period, local manufacturing exports reached RD$25,831.1 million, with the most significant increases observed in cane sugar (5.5%) and plastic goods (0.8%).
These positive developments highlight the resilience and dynamism of the Dominican Republic’s manufacturing sector, which continues to play a crucial role in driving economic growth and generating employment opportunities. The sector’s ability to adapt to changing global market conditions and tap into emerging export opportunities positions it well for continued success in the years to come.
Tourism
The Dominican Republic’s tourism industry continued on a sustained growth path with a 3.5% increase in non-resident foreign arrivals in April compared to the same month in 2023. Year-to-date, tourist arrivals have reached 2.6 million, representing a cumulative year-over-year increase of 11.6%.
In the first four months of 2024, 39.5% of non-resident arrivals to the Dominican Republic were from the United States. This was followed by Canada (17.5%), Colombia (4.0%), Argentina (3.2%), France (3.1%), Puerto Rico (2.5%), England (2.1%), and Brazil (2.1%).
Retail
Retail activity in the Dominican Republic saw a decline in April. Total real operations in the Dominican Republic’s retail sector amounted to RD$144,528.3 million in April, representing a year-on-year decrease of 8.7%. This decline extends a downward trend observed since the beginning of the year, with total operations for the period January-April 2024 reaching RD$610,696.6 million, a 6.6% drop compared to the same period in 2023.
The sector’s performance in April was particularly affected by economic factors, consumer behavior, or supply chain disruptions. This slowdown has raised concerns among industry experts, who are closely monitoring the situation and analyzing potential strategies to mitigate the impact and promote a recovery.
Despite the current challenges, the retail sector remains a crucial component of the Dominican Republic’s economy, contributing significantly to employment and overall economic growth.
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Ministry of Economy
24 June 2024