The economic growth of the Dominican Republic has tripled the regional average over the past two decades, resulting in 2.8 million people rising out of poverty, a middle class that now surpasses the poor population, and an improvement in the quality of life in terms of access to basic services, housing, and education.
To maintain this dynamic growth and extend its benefits to more households and impoverished areas, it will be crucial to increase productivity through the implementation of reforms to strengthen human capital, competitiveness, innovation, service delivery, public spending efficiency, and resilience to climate events.
In 2024, the economy is expected to grow by 5.1%, thanks to monetary easing, increased public investment, and a record influx of tourists. In the medium term, growth will be driven by strong consumption and investment, supported by reforms in areas such as fiscal policy, energy, water, and employment, as well as initiatives to improve education and attract foreign investment.
The government has shown a strong commitment to addressing the long-standing challenges posed by the electricity sector through a comprehensive package of reforms aimed at increasing transparency, accountability, and efficiency in the sector, continuing the diversification of the energy matrix to include less polluting energy sources, and increasing access to reliable and affordable energy.
The occurrence of adverse climatic events increasingly highlights the critical need for accelerated action to strengthen the country's resilience and adaptation in an inclusive manner.
Taking advantage of new business opportunities and private sector solutions, and developing assets in key sectors such as logistics and financial services, would increase the attraction of competitive investors to the Dominican Republic, while gradually reducing the country's dependence on fiscal incentives.
Last Updated: Oct 15, 2024
