New York. – President Luis Abinader highlighted this Wednesday that, for more than fifty years, the Dominican economy has registered a notable achievement in the region: an average annual economic growth of around 5%, reaching a gross domestic product (GDP) of more than 130 billion dollars, making the Dominican Republic the seventh largest economy in Latin America and the Caribbean.
The president also said that macroeconomic stability has attracted investors to the favorable business climate that exists in the country and that the result is a significant flow of foreign direct investment, which in recent years has represented nearly 4% of GDP, one of the highest in the region.
During his participation in the Conference on Infrastructure Investment in Latin America and the Caribbean of the Development Bank of Latin America and the Caribbean (CAF) and the Financial Times, President Abinader spoke about identifying opportunities for investors and asset management.
He explained that this reality has been recognized by Fitch, Standard and Poor’s and Moody’s, which have recently improved their rating or outlook and, in addition, according to the Emerging Markets Bond Index (EMBI), the country risk of the Dominican Republic is lower than that of other nations with investment grade ratings, which allows for lower cost of access to financial markets.
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The Dominican leader said that, for an audience of experts, this meeting is essential to develop new approaches that facilitate timely and adequate access to international financing for investment in infrastructure.
As Dominican examples that he said will find echo in the region, he cited that, in the energy sector, they will need to invest around $5.4 billion in the coming years to continue the important transformation in generation, transmission and distribution. “Our goal is to achieve a cold reserve by 2027, creating a surplus that will allow us to lay a submarine cable to sell electricity to Puerto Rico. Another goal is to reach 30% renewable generation by 2030.”
Dominican Republic to be recognized as a world-class logistics hub
Regarding the crucial issue of logistics, he explained that the Dominican Republic has been developing the physical and human infrastructure necessary for it to be recognized as a world-class logistics hub.
In this regard, he indicated that, in terms of port connectivity, the country has 10 seaports that handle international cargo, on the way to reaching 2.5 million TEUs per year, and also 8 airports that connect it to 170 destinations around the world.
The Dominican head of state also highlighted that they have built numerous tourist ports and fishing docks and that, on the north coast, in the port of Manzanillo, they are building a large multimodal logistics dock that will bring Dominican exports even closer to the east coast of the United States.
In addition, he explained, they have a dynamic private sector committed to public-private partnerships to expand, build and operate ports and airports.
He said that since connectivity is an essential element for trade, tourism and investment, it has recently signed important open skies agreements with the United States and Canada.
Clear strength to attract foreign investment in the tourism sector
“My government is developing an Integrated Transportation System for the two most important urban areas of the country: Santo Domingo and Santiago, which includes important infrastructure projects such as monorails, cable cars and the expansion of the Santo Domingo metro,” Abinader stressed.
He added: “Our strength in attracting foreign investment is evident in our tourism sector, especially in Punta Cana and Miches. We are now promoting a new tourist hub in the south of the country, in Pedernales.
In this regard, the president said that they are revitalizing the tourist area of Puerto Plata with the development of Playa Bergantín, an ambitious tourism and real estate project developed by the private sector and aimed at promoting innovation in the digital field and which will include, among other features, an academic campus, a film studio, a golf course and extensive road infrastructure.
He said that technology is essential for rapid and sustainable development and that is why he issued a decree declaring the promotion, innovation and development of the semiconductor industry a high national priority and ordering the formation of a National Strategy for the Promotion of the Semiconductor Industry.
Referring to the mining sector, he explained that he is committed to expanding operations in the Dominican Republic. “The country has gold, silver and nickel, and has had bauxite. Ladies and gentlemen, where there is bauxite, rare earth elements are often present. We are currently exploring this possibility with the help of the US Army Corps of Engineers. We are also very aware of the international standards set for mining by the Extractive Industries Transparency Initiative (EITI), which we adopted in 2016.”
Fully committed to new infrastructure investments
He ruler The Dominican Republic emphasized that it is fully committed to paving the way for new investments in infrastructure, which are essential to boost sustainable development and achieve a virtuous circle of prosperity and growth in the Americas.
He affirmed that inclusive and sustainable economic growth, political stability and individual freedom are intrinsically linked and can only truly flourish under democratic systems that protect human rights, and considered that development within a democracy is a fundamental factor in ensuring that the fruits of that democracy reach all citizens.
He concluded by saying: “Working to achieve these goals is the most valuable legacy we can leave to future generations. Our government is pro-business, pro-employment, pro-growth and pro-innovation. Please visit the Dominican Republic soon.”
