Economy November 27, 2024 - 12:55 pm

Central Bank: Dominican Republic’s tourism sector drives economic growth

Santo Domingo.-  The Central Bank of the Dominican Republic (BCRD) has reported preliminary economic activity results for the period of January to October 2024. Notably, the tourism sector, specifically hotels, bars, and restaurants, experienced a 6% growth compared to the same period in 2023.

This growth is primarily attributed to the significant increase in passenger arrivals at various airports during the specified period. According to projections from the Ministry of Tourism, the country expects to welcome 11.5 million visitors via air and sea by the end of 2024.

The expansion of the Monthly Economic Activity Index (IMAE) in January-October solidifies the Dominican Republic’s position as the fastest-growing economy among its Latin American counterparts. This aligns with forecasts from international organizations such as the International Monetary Fund (IMF), which anticipate the Dominican economy to close the year with a 5.1% growth.

The 5.1% year-on-year variation of the IMAE in January-October 2024 is primarily driven by the performance of service sector activities, which collectively exhibited a 5.3% accumulated increase compared to the same period of the previous year. Notable subsectors include financial intermediation (7.9%), transportation and storage (5.8%), real estate and rental activities (5.7%), and communications (5.2%).

Furthermore, local manufacturing increased by 7.1% in October, with a cumulative growth of 4.4% in January-October 2024. Free zone manufacturing grew by an average of 6.5% during the first ten months of the year and 5.8% in October 2024.

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