Economy February 20, 2023 | 5:01 pm

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Foreign direct investment in the Dominican Republic totaled US$3.8 billion in 2022

Foreign direct investment (FDI) flows in the Dominican Republic would have reached the historical amount of US$3.8 billion during 2022, thus exceeding the levels of 2021 by 22.57%, of 2019 by 25.85%, and its highest amount registered in 2017, (US 3.5 billion, 6.5%). In fact, already in September of that year, according to data available on the portal of the Export and Investment Center of the Dominican Republic (ProDominicana), they had exceeded the amount of 2021, reaching US$3.1 billion, an additional US$779.1 million (32.3 %) compared to that period a year earlier. The flow presented that year, as indicated, was driven mainly by investments in the tourism (US$759.2 million), energy (US$687.3), and Commerce and Industry (US$524.1 million) sectors.

In this sense, the CARD Region Balance of Payments reports, as of the third quarter of 2022, from the Central American Monetary Council (CMCA), highlights that the communication sector had an outstanding pace in the country, adding US$168.1 million in foreign investments. This is a sector that for several years presented negative indicators. During 2022, the United States remained the country with the largest issuer of investment to the Dominican Republic, surpassing other countries by more than 1,000%. It added US$1 billion in the first nine months, while Mexico registered US$290.1 million, followed by Canada with US$265 million, and Spain with US$247.6 million. British Virgin Islands complete the five nations with the highest amount injected with US$235.8 million.

At the regional level, net Direct Investment (ID) flows (acquisition of financial assets minus net incurred liabilities) from Central America and the Dominican Republic (CARD) totaled US$7.8 billion (2.9% of regional GDP). The amount is higher than the ID captured during the same period of 2021 (US$6.9 billion, 3.0% of GDP). Meanwhile, foreign direct investment by directional direction received accounted for US$8.1 billion (including intraregional investments), an amount 6.1% higher than that registered in the same period of 2021 (US$7.6 billion). Likewise, it is basically due to the increase in ID captured by the Dominican Republic, Honduras, and Nicaragua.

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February 22, 2023 9:48 pm

The question is, in what area are these investments? Is it mainly tourism?