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July 24, 2025
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Does it benefit or limit us? The impact of US foreign investment

 ¿Nos beneficia o nos limita? El impacto de la inversión extranjera estadounidense

Foreign direct investment (FDI) from the United States continues to be a key pillar in the economic development of the Dominican Republic. With more than US $ 4,700 million estimated for this yearaccording to the Central Bank, the country is positioned as one of the main destinations of foreign capital in the region.

Economic and social benefits

Experts such as economist Winston Marte highlight that FDA not only strengthens the Macroeconomic stabilitybut also promotes the creation of Value chainsencourages formal employment and promotes the Technology and knowledge transfer..

“The productivity of workers is the engine of the welfare of a town,” Mars told the newspaper Today.

He adds that foreign investment helps maintain exchange stabilitywhich contributes to control inflation within the target range of the Central Bank (4% ± 1%). This is especially relevant in a context where the increase in the dollar can make imported products more expensive, affecting national transport and production.

United States: Strategic Partner

The United States remains as the main foreign investorrepresenting more than 30% of the total FDI in 2023. Its investments cover sectors such as Tourism, Energy, Commerce and Industryand have been fundamental for the sustained growth of the country.

Limitations or dependence?

Despite the benefits, some analysts warn about the risks of a Excessive dependence. Capital repatriation, concentration in certain sectors and lack of integration with local companies can limit the positive impact.

Once, it is recommended to promote Strategic alliances with Dominican companiesto ensure greater retention of benefits and an effective transfer of capacities.

Towards a more inclusive investment

The challenge is in Maximize benefits of the FDI through policies that promote the local innovationhe development of human capital and the sustainability.

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