Luis Abinader says Dominican Republic’s economic growth is above the regional average

The economic growth of the Dominican Republic was another of the topics highlighted by the president at the swearing-in ceremony to begin his second term in government. In this sense, he described as enviable the numbers recorded in 2021, 2022 and 2023 when the Gross Domestic Product had a notable average increase of 6.5% annually, well above the regional average.

Furthermore, forecasts from international organizations such as the International Monetary Fund (IMF) place growth for 2024 at 5.4%, much higher than the 1.9% projected for the same period in the region.

“We are one of the countries with the greatest economic stability and one of the lowest inflation rates in Latin America,” said Abinader.

At the same time, he added that in May 2023 the country was below the target range of 4%, being one of the first to achieve that objective and closing the year with 3.57%, continuing the work to mitigate the effects of global inflation.

Investments

In this regard, the Head of State reiterated that the country enjoys an excellent climate of confidence, attracting the highest figures in history in terms of private investment, which in relation to GDP rose from an average of 25% between 2007-2020, to 32% between 2021-2023.

Foreign direct investment exceeded US$4.39 billion at the end of 2023, breaking the record for 2022 and contrasting with ECLAC data indicating that, in the region, this investment fell by around 10% for the same period.

More than 11 million visitors by 2024

Another of the goals achieved in 2023 during Abinader’s first term in office was the reception of more than 10 million visitors in one year, successfully overcoming the COVID-19 pandemic by implementing a strategy of rapid opening and reforms.

By 2024, “I anticipate that we will exceed 11 and a half million visitors, which consolidates us as the second most visited country in Latin America,” said the president.

Thanks to the strength of tourism and other sectors, 2023 closed with the highest level of international foreign exchange reserves in history at 15,457 million dollars.

Logistics hub

All of this has allowed the country to consolidate its position as the seventh largest economy in Latin America and has led it to become a world-class logistics hub, taking advantage of our privileged geographical position in the Caribbean, a strategic point for global trade.

In addition, there is a strong investment in infrastructure that is better connecting the entire country and increasing our logistics capabilities.

“In the past four years we have built two new tourist ports and another three are under construction through public-private partnerships. In addition, a new large multimodal logistics dock is already in the construction phase in Manzanillo, in the north of the country, and to this we must add the more than 15 fishing docks that we built in different parts of the country.”

Continuing his speech, Abinader said that previously forgotten areas have been renovated and connected, and that a commitment has been made to mass transportation with the construction of large infrastructures such as the Santiago monorail, the Santiago and Los Alcarrizos cable cars, and the extension of the Santo Domingo metro.

In the past four years, Punta Cana Airport has doubled its facilities, and next year construction will begin on Terminal 2 at Santo Domingo Airport. This year, 2024, construction will begin on a new terminal at Santiago Airport and the new Pedernales International Airport.

He said that “in terms of logistics, we are in clear expansion. We have never been better connected, both within the country and with the rest of the world.”

Free Trade Zones

Another of the country’s economic growth engines are the Free Trade Zones, providing almost 200,000 jobs and some 8 billion dollars in exports in 2023. This represents 28% more exports and 12.4% more jobs compared to 2019.

Furthermore, better high-tech goods are exported, such as medical devices, electronic equipment, and other high value-added components.

This allows for better, more qualified and better-paid jobs and makes it possible for the country to be one of the few global candidates in the coming years that qualify for semiconductor assembly, with the training, network of contacts and allies and a favourable ecosystem to achieve this.

“But these economic figures would not be important in themselves if they were not clearly reflected in people’s lives. We have economic strength supported by all these indicators, but we also have great social strength,” Abinader concluded.