The Dominican Republic’s economy has continued its robust growth trajectory posting a 5.1% average year-on-year expansion over the first nine months of 2024, the Central Bank reported on 1 November 2024.
September 2024 alone saw a 4.7% increase in the Monthly Economic Activity Index (IMAE), indicating sustained momentum. The Central Bank attributed this strong performance to a stable price environment and prudent monetary and fiscal policies, which have helped mitigate global risks.
Despite global challenges such as geopolitical tensions in the Middle East and Eastern Europe, the Dominican economy has remained resilient. The United States, the country’s primary trading partner, contributed to this positive outlook with a 2.7% year-on-year growth in the third quarter.
The International Monetary Fund (IMF) has also revised its growth forecast for the Dominican Republic upward to 2.8% for 2024.
The key drivers of growth have been:
• Construction: A 4.4% year-on-year increase, reflecting robust infrastructure development.
• Manufacturing: The free zone sector grew by 6.5%, with exports reaching US$6.4 billion.
• Services: The services sector collectively expanded by 5.3%, with notable growth in financial intermediation, hotels, restaurants, transportation, and real estate.
• Tourism: The tourism sector continued to thrive, with projections of 8.5 million tourist arrivals by year-end.
The Central Bank highlighted the expansion of credit to the private sector, which grew by 16.2% year-on-year. This, coupled with improved country risk indicators, positions the Dominican Republic favorably for sustained growth.
The Central Bank says that the outlook is for the growth momentum to continue given the strong macroeconomic fundamentals and resilient productive sector. The country continues to position itself as a regional economic leader.
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Central Bank
5 November 2024