For years it had been normal for the country to grow 4-5%. This 2023, the Gross Domestic Product in the Dominican Republic has slowed to 1.7%, reflecting the difficulties created by the Ukrainian War. The statistics will soon show the effects of the war in Gaza.
The Central Bank governor said the Monetary Board has authorized channeling RD$126 billion through financial intermediaries to productive sectors and households to stimulate the economy.
Despite the external pressures, the Dominican Republic’s economy has hung on, sustained by the booming tourism industry and the support of its expats through the remittances they send home. Central Bank Governor Hector Valdez Albizu, on the occasion of the 76th anniversary of the Central Bank, highlights that tourism receipts so far this year are around US$7.59 billion (from January to September), and there are expectations these will surpass US$10 billion by the end of 2023. Furthermore, remittances are at US$7.59 billion, also to September 2023, with expectations these too will be around US$10 billion by the end of the year.
Another plus for the Dominican economy is that the general stability and pro-business climate in the country continue to attract foreign investment. Foreign Direct Investment hovered around US$3.37 billion for the year’s first nine months. FDI is expected to surpass US$4.3 billion by the end of the year.
Tourism receipts, remittances and FDI have resulted in the country having its level of international reserves as of September 2023 at US$15.9 billion, or 13.2% of GDP. The total of remittances is sufficient to cover almost six months of imports.
Valdez Albizu said that the September 2023 Monthly Economic Activity Indicator indicator shows an interannual growth of 3.1%. He said this is the highest monthly rate for the year. He said that real GDP for July- September 2023 is at 2.6%, and the accumulated January-September increase is at 1.7%.
Yearly interannual inflation as of September 2023 is at 4.41%. 4.41% is within the projected 4% ± 1%.
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BCRD
24 October 2023