Luis Abinader says Dominican Republic economic growth above regional average

Santo Domingo – The economic growth of the Dominican Republic was another topic highlighted by the President at the swearing-in ceremony to begin his second term of government. In this sense, he described as enviable the numbers recorded in 2021, 2022, and 2023, when the Gross Domestic Product had a remarkable average increase of 6.5% per year, well above the average for the region.

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

“We are one of the countries with greater economic stability and with 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%, but it was one of the first to reach that goal and close the year with 3.57%, continuing the work to mitigate the effects of global inflation.

Investments

In this aspect, 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, with respect to GDP, went from an average of 25% between 2007 and 2020 to 32% between 2021 and 2023.

Foreign direct investment exceeded 4.39 billion dollars by the end of 2023, breaking the record of 2022 and contrasting with ECLAC data indicating that, in the region, such investment fell by close to 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 applying a strategy of rapid opening and reforms.

The President said in 2024, “I anticipate that we will exceed 11.5 million visitors, which consolidates us as the second most visited country in LaPresidentca.”

Thanks to preserving tourism and other sectors, 2023 closed with the highest international foreign exchange reserves in history with 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 world trade.

In addition, we are investing heavily in infrastructure that will better connect the entire country and increase our logistics capabilities.

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

Continuing his speech, Abinader said that previously forgotten areas have been reformed and connected. Mass transportation has been promoted by constructing large infrastructures such as the Santiago monorail, the Santiago and Los Alcarrizos cable cars, and the Santo Domingo subway extension.

In the past four years, the Punta Cana airport has doubled its facilities, and next year, the construction of Terminal 2 of the Santo Domingo airport will begin. In 2024, construction began on a new terminal at the Santiago airport and the new international airport in Pedernales.

He indicated that “in logistical terms we are in frank 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 is the Free Trade Zones, which contributed almost 200,000 jobs and some US$8 billion in exports in 2023. This represents 28% more exports and 12.4% more jobs compared to 2019.

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

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

“But these economic figures alone would not be important if they did not have a clear reflection in people’s lives. We have economic strength backed by all these indicators, but we also have great social strength,” concluded Abinader.