The economy of the Dominican Republic had a 2021 with relevant aspects, being the remittances one of the elements to highlight. Creoles abroad represented the second largest earner of foreign exchange for the country last year, second only to exports.
But the remittances, in addition to implying resources for investment, maintenance or other destination of Dominican families, when the amount received is compared with the gross domestic product (GDP), the income generated by tourism and foreign investment, exports and collections of the General Directorate of Internal Taxes (DGII) its impact on the economy is perceived even more.
Last year, nationals abroad sent their relatives remittances for US$10,402.5 million, a figure that represents a growth of 26.6%, compared to 2020, an amount that at the average sales rate of 2021 in the spot market, which was RD$57.21, totals RD$595,127 million, according to the central bank (BC).
The remittances received by the country in 2021 exceeded the income received from tourism activity (US$5,626 million) and from foreign direct investment (US$2,484.9 million), the latter data between January and September, according to statistics from the Ministry of Tourism and the BC, respectively.
From the external sector, only exports exceeded the amount of foreign currency sent by Dominicans from abroad. Preliminary figures indicate that in 2021 the country exported US$11,831.5 million, US$1,429 million more than the remittances, according to the Export and Investment Center of the Dominican Republic (ProDominicana).
Also, the flow of remittances that arrived in the country between January and August of last year (US$7,031.7 million) represented 7.6% of GDP, which revised to the eighth month of 2021 totaled US$91,561.3 million, according to records from the Ministry of Finance.
In addition, the arrival of foreign currency to the country for remittances contributed to the improvement in the level of international reserves.
In his report on the remittances, the central bank explained that the amount remitted by Creoles abroad allowed the accumulation of international reserves, exceeding US$13,000 million at the end of 2021, 14% of GDP and equivalent to 6.6 months of imports.
“These metrics exceed the levels recommended by the International Monetary Fund, helping the Dominican Republic maintain a favorable external position, with a current account deficit in 2021 estimated at around 2% of GDP,” the institution pointed out.
