flows of foreign direct investment (FDI) to the Dominican Republic increased 21% in 2021, totaling 3,102 million dollars, the highest level since 2017, according to a recent report from the ECLAC.
However, last year guyana was the Caribbean country that presented the highest growth in amount, beating Quisqueyawhich in previous years had led the receipt of investments in the subregion.
In 2021, the entries of FDI in the Caribbean amounted to 8,957 million dollarsfigure 19.4% higher to that registered in 2020, which corresponds mainly to capital inflows in the Guyana hydrocarbons sector and the increase in FDI in the Dominican Republic, stands out in the report “The Foreign direct investment in Latin America and the Caribbean”, released yesterday by the Economic Commission for Latin America and the Caribbean (ECLAC).
The document highlights that guyana is positioned for the first time As the main destination of FDI in the subregion, concentrating 50% of the entries, followed by the Dominican Republic with 35%.
“With a tourist vocation, the Caribbean economies they saw each other strongly affected due to the COVID-19 crisis, but they have already reached levels of foreign investment top 24% those of 2019”, observes the ECLAC.
He points out that while investment in the tourism and hotel sector has begun to pick up In the Dominican Republic, other countries, such as Jamaica and Barbados, have shown their potential in the business process outsourcing sector, attracting investment from companies in the sector.
Dominican Republic recovers
With the growth exhibited by the Dominican Republic“there is thus produced a Recovery compared to the fall of 2020 and reached above average values of the last ten years”, highlights the ECLAC.
It indicates that this growth is mainly explained by biggest entries in the sectors of services and natural resourceswhile manufacturing entries were reduced, when fewer investments were received than in 2020 (-25%), which represented 11% of total income.
It specifies that the services received a 8% more of FDI than in 2020 and represented the 74% of the total entries.
Highlights the sector shops, hotels and restaurantswhich alone concentrated the 40% of the entries into the country, with an amount 5.2% higher than the previous year, returning to levels close to those reached before the pandemic. In addition, announcements of new investments in the sector were made.
They also highlight the building (with an increase of 9.7% compared to 2020) and the transportation and communicationswhich after registering a negative value in 2020 shows a recovery.
Regarding the origin of the capital, the USA continue to be the main source of FDI from the Dominican Republic.
