Remittances to the Dominican Republic continue their robust growth, with the Central Bank of the Dominican Republic (BCRD) reporting a significant increase in the first five months of 2025. Between January and May 2025, the nation received an impressive US$4.90 billion in remittances, marking an 11.9% jump compared to the same period last year.
May 2025 alone saw US$985.5 million flow into the country, an 11.1% increase over May 2024. These funds, sent by the Dominican diaspora abroad, are crucial for the country’s economic development, creating a ripple effect that boosts consumption, investment, and support for vulnerable sectors. The high level of remittances reflects the continued strong ties of the diaspora with the Dominican Republic.
The strong performance in remittances comes amid a challenging global economic landscape characterized by high uncertainty and volatility in international financial markets. These conditions have dampened global growth expectations, leading to shifts in capital flows and increased caution among households and businesses, particularly in countries with large migrant populations.
The United States, which accounts for the vast majority of formal remittance flows to the Dominican Republic, played a significant role in May’s figures. 83.1% of the formal remittances, totaling US$759.2 million, originated from the United States. Key economic indicators in the US during May influenced this trend. The overall unemployment rate held steady at 4.2%, unchanged from April and remaining near full employment levels.
However, the Institute for Supply Management’s (ISM) non-manufacturing Purchasing Managers’ Index (PMI) registered 49.9 in May, a slight dip from 51.6 in April 2025, suggesting a minor slowdown in the service sector.
Beyond the US, the BCRD highlighted substantial remittance contributions from other countries in May. Spain was the second-largest source, sending US$54.1 million, or 5.9% of the total. Haiti contributed 1.4%, while Italy and Switzerland each accounted for 1.1% of the total inflows. Other notable contributors included Canada and France.
Domestically, the distribution of remittances reveals a concentration in urban centers. The National District received the largest share in May, at 37.1%, followed by the provinces of Santiago with 13.2% and Santo Domingo with 8.0%. This indicates that over half (58.3%) of all remittances are directed to the country’s metropolitan areas.
Positive outlook and economic stability
Looking ahead, the BCRD anticipates a favorable evolution of foreign exchange earnings throughout 2025. Along with remittances, income from tourism, foreign direct investment (FDI), and exports are expected to be strong contributors. By year-end, remittances are projected to reach approximately US$11.3 billion, with FDI flows estimated at around US$4.7 billion.
The Central Bank explains that these robust foreign currency inflows have contributed to the relative stability of the exchange rate. By the end of May 2025, the national currency had appreciated by 3.4% since the close of 2024. Furthermore, these increased external flows have bolstered the country’s international reserves, which stood at US$14.64 billion at the end of May. This represents 11.6% of the GDP and covers approximately 5.4 months of imports, surpassing the thresholds recommended by the International Monetary Fund (FMI).
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Central Bank
18 June 2025