The Dominican Republic’s economy expanded by a robust 5% in 2024, exceeding expectations and solidifying the nation’s position as the Latin American and Caribbean economic leader.
The Central Bank attributed the strong performance to a combination of factors, including:
• Monetary policy: The Central Bank’s proactive measures, such as interest rate cuts and increased liquidity, supported economic growth while keeping inflation within the target range.
• Fiscal discipline: Sound fiscal policies and a focus on debt sustainability contributed to macroeconomic stability.
• Foreign investment: The country continued to attract significant foreign direct investment, bolstering its economic fundamentals.
• Resilience: The Dominican economy demonstrated resilience in the face of global economic challenges, including geopolitical tensions and rising interest rates.
The economy grew bolstered by its strong external sector.
Driven by a surge in tourism, fueled by record arrivals of both air and cruise passengers, the services sector was a key driver of growth. Of the total 11.2 million visitors, 8.5 million came by air and 2.5 million by sea. The construction and manufacturing sectors also contributed significantly to the overall expansion.
Likewise, remittances from Dominicans living abroad reached a historic high, providing a substantive source of hard currency. Remittances reached a record high of US$10.75 billion in 2024, representing an annual increase of 5.9%. This growth is attributed to the positive economic conditions in the United States, which accounts for over 80% of these flows.
Foreign direct investment (FDI) reached US$4.51 billion, surpassing US$4 billion for the third consecutive year, effectively covering the current account deficit for 2024. This figure represents a 2.8% increase compared to 2023, with notable investments in the transportation, real estate, energy, and tourism sectors.
The Central Bank reported that inflation was 3.35 well below the target range of 4.0 % ± 1.0 %, supporting purchasing power.
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Central Bank
28 January 2025