Diario Libre gives an overview of important events in the passing year. The year’st most important events were the municipal and presidential elections that resulted in the sweep by the ruling Modern Revolutionary Party (PRM), and President Luis Abinader winning a second term of office.
Some of the main themes throughout the year were reform, economic growth and tourism. The amendments passed for the 2015 Constitution of the Dominican Republic, including the new constraints to ensure an eight-year maximum for the President of the Republic. One re-election or two different elections (like Trump), but only eight years of service.
Diario Libre mentions the failed tax reform, with which the government sought to increase government income by over RD$120 billion. However, less than two weeks after announcing details of the proposed tax reforms, President Luis Abinader withdrew the proposal from Congress amidst thousands of rejections from those that would be directly impacted. In his statements concerning the withdrawal, he noted that the government would have to pursue other avenues to secure the needed resources, but assured the country that current projects would be concluded. He also noted that the national debt needed to be cautiously observed.
Then there is the legislative proposal to reform the Labor Code, and those discussions are still ongoing. The labor sector is adamant in favor of the current provisions that guarantee workers a severance package based on their length-of-service and pay scale, called the “cesantía.” Meanwhile, the major business associations are backing a six-year maximum with a set payment based on at least ten minimum wages. The talks will go into 2025.
Tourism was a bright star in 2024, with the Dominican Republic receiving over 10 million visitors by the first of December, and with a very good possibility of reaching the 11 million goal by year’s end. The Dominican Republic is attracting around a third of all tourism in the Caribbean.
Fuel prices were stable throughout the year, with the government arguing it has subsidized prices to the tune of RD$$16 billion.
The nation has had to deal with external impacts caused by international crises, such as the ongoing multidimensional crisis in Haiti, the war in the Ukraine and the conflict in Israel. The situation in Haiti is a heavy cost for Dominican taxpayers who are funding social services (including education and medical services) for documented and undocumented Haitian migrants who are denied these services in Haiti. The Ukraine and Israel issues place stress on the Dominican Republic as cargo rates are up over 150%.
On the positive side, the Central Bank of the Dominican Republic announced early in December 2024 that the nation’s GDP grew by over 5% and inflation was within the 4% (+-1%) that had been set as the goal for 2024.
Read more in Spanish:
Diario Libre
26 December 2024