World Bank hopes to normalize Dominican Republic-Haiti relations; highlights stability attracts investment
Santo Domingo.- The World Bank’s Chief Economist for Latin America and the Caribbean, William Maloney, expressed hope for the normalization of the situation on the Dominican-Haitian border, which has been closed due to a binational conflict over the use of water from the Massacre River. He emphasized that stability in the region is an attractive factor for foreign investment.
Maloney mentioned that the Dominican Republic, like many other islands in the area, has the potential for nearshoring, which can be harnessed to attract foreign investment.
In terms of economic growth, the World Bank’s projections for the Dominican Republic indicate a growth rate of 3.1% in 2023 and 4.6% for the following year. While these growth rates are positive by regional standards, they represent a slight reduction from previous estimates. The World Bank had initially projected a growth rate of 4.1% for 2023 and 4.8% for 2024 in June of the same year.
Maloney highlighted that the Dominican Republic has shown sustained growth in productivity compared to many other countries in the region.
On a regional level, the World Bank estimates that Latin America will experience stronger-than-expected growth in 2023, with a projected GDP growth rate of 2%, up from the previous estimate of 1.4%. However, this growth rate is still below that of other regions in the world. The report suggests that higher-than-expected GDP growth in the United States and the performance of the G7 nations are helping the region’s economic prospects.
In terms of individual countries in the region, Mexico is expected to grow by 3.2%, Brazil by 2.6%, Peru by 0.8%, and Colombia by 1.5%. Argentina is projected to experience a 2.5% decrease in GDP, while Chile is expected to see a 0.4% decrease.