Consumer, construction and trade loans in national currency were in first place
Loans granted to the private sector in the Dominican Republic have shown remarkable growth.
Data updated through July 24, 2024 indicate a substantial increase in both national currency (M/N) and foreign currency (M/E), reflecting a panorama of post-pandemic economic recovery and expansion at the local level.
The private sector in national currency has seen an increase in loans from December 2021 to July 2024, going from RD$1,178,192.9 million to RD$1,736,593.8 million. This 47% growth in two years and seven months is an indication of the confidence of financial institutions in the country’s economic stability and its ability to recover.
Within this group, key sectors such as construction, wholesale and retail trade, and consumer loans have been the main recipients of financing: According to figures from the Central Bank of the Dominican Republic (BCRD), reviewed by elCaribe, loans in national currency to the construction sector grew by 51.9%, going from RD$66,004.2 million in December 2021 to RD$100,300.8 million in July 2024.
Wholesale and retail trade experienced an increase of 37.9%, reaching RD$228,793.1 million in July 2024. In December 2021, loans to that branch had been at RD$165,870.6 million.
Consumer loans increased by 60.7%, from RD$365,266.9 million to RD$587,030.9 million. Credit cards increased by 78.9%, from RD$45,533.9 million in December 2021 to RD$81,475.7 million in July 2024.
The private sector in foreign currency has also shown significant growth, with an increase of 68% in the same period, from RD$257,892.2 million in December 2021 to RD$433,568.0 million in July 2024.
This increase is mainly driven by sectors such as electricity, gas and water, and wholesale and retail trade: Credit to electricity, gas and water (in M/E) more than doubled, going from RD$25,781.5 million in December 2021 to RD$57,908.2 million in July 2024.
In consolidated terms, loans to the private sector in all currencies reached RD$2,170,161.8 million in July 2024, an increase of 51.1% from December 2021, when the amount was RD$1,436,085.2 million. This growth covers a wide range of economic sectors, and indicates a diversification in loan allocation and an expanding economy.
Breakdown by economic sectors
Regarding agriculture, forestry and fishing – in national currency – from December 2021 to July 2024, loans increased from RD$46,899.6 million to RD$57,974.4 million, showing a growth of 23.64%.
In foreign currency, in the same period, loans rose from RD$4,280.1 million to RD$8,157.5 million, a growth of 90.57%.
The numbers indicate that in terms of mining and quarrying, in national currency, loans fluctuated slightly, starting at RD$1,917.9 million in December 2021 and reaching RD$2,192.5 million in July 2024.
In M/E, loans increased significantly, from RD$918.9 million in December 2021 to RD$4,513.2 million in the recently concluded month of July 2024, an increase of 391.16%.
In manufacturing industries, in national currency, loans grew from RD$86,571.1 million in December 2021 to RD$101,423.8 million in July 2024, an increase of 17.15%.
This sector, seen in foreign currency, showed variability, with a peak in December 2022 (RD$41,549.3 million) and a decrease to RD$35,198.4 million in July 2024.
In electricity, gas and water, in M/N, loans remained relatively stable, with a small fluctuation, reaching RD$4,785.5 million in July 2024.
Construction, a look
Looking at this sector in M/E, loans increased from RD$16,505.6 million in December 2021 to RD$28,960.6 million in July 2024. Regarding wholesale and retail trade, in M/E loans grew from RD$35,468.7 million in December 2021 to RD$82,259.6 million in July 2024, an increase of 131.89%.
In the hotel and restaurant activity, based on BCRD figures, in M/N, credits rose from RD$5,980.0 million in December 2021 to RD$8,442.2 million in July 2024.
And in foreign currency they went from RD$70,601.3 million in December 2021 to RD$85,168.8 million in July 2024. In the transportation, warehouse and communication part, financing moved – in national currency – from RD$12,265.7 million in December 2021 to RD$20,750.1 million in July of the current year.
In foreign currency, loans fluctuated and ended at RD$21,688.4 million in July 2024. In 2021, they closed at RD$16,583.1 million.
In real estate, business and rental services (in M/N), loans grew from RD$36,407.3 million in December 2021 to RD$46,701.3 million in July 2024.
Acquisition of housing and community services
For the acquisition of homes, loans in national currency rose from RD$251,099.0 million in the analysis period to RD$355,066.2 million. And in foreign currency they have grown from RD$10,091.6 million to RD$27,108.4 million in July 2024.
Credits for community, social and personal services in national currency showed fluctuations, reaching RD$39,406.5 million in July 2024. In M/E they varied slightly, ending at RD$2,357.5 million in July 2024.
In pesos…
In agriculture, forestry and fishing – in national currency – loans increased from 46,899.6 million to 57,974.4 million
Trust
The financial system, its robustness and the confidence in the different sectors, at the same time demonstrate the confidence in the country.
