DR’s economy is driven by tourism, according to Bank of America
The multinational investment bank, Bank of America, highlighted that the Dominican economy has maintained a favorable performance, mainly due to the dynamism of tourism. The financial entity asserts that the dynamism of tourism, which is expected to bring in more than 7 million non-resident visitors in 2022, has helped the DR’s economy maintain strong growth while offsetting the negative effects of rising global raw material prices. In that regard, they suggest that even in the event of a potential recession in the United States during the following year (2023), the Dominican economy would continue to grow among the fastest in the region.
They clarify that due to the strength of its macroeconomic fundamentals as well as its political and social stability, international analysts and investors continue to view the Dominican Republic as a desirable location for investment. The aforementioned details were provided as part of the recent annual meetings of the World Bank and the International Monetary Fund in Washington.
The financial institution notes that the projections for the world economy continue to deteriorate, associated with lower growth and rising geopolitical tensions, in its report on the prospects for emerging economies, prepared after holding approximately one hundred meetings with the technical teams of the different countries.
In a similar vein, investors and the Bank of America team praised the economic policies that have been put in place and helped to control inflation while maintaining potential growth during their meeting with the Central Bank delegation.
There are no figures provided here to support the proposition that the economy is being driven by tourism . The zonas franca are doing well and there are many new industries in the Villa Mella area producing goods that previously had to be imported. The sugar industry is doing well, there is good income from gold production and so I would say the DR is developing a balanced economy . But who benefits.? Probably less than 50% of Dominicans and this is the problem of the DR and most latin countries.
Too much of the economy is driven by Tourism as it is the country’s cash cow. The government needs to support more non tourism related services and industries to provide a better diversification of the economy to achieve a balance of revenue income. This is done to cushion the heavy losses of tourism revenues to the country should that sector again take a hit.
We should be little “Switzerland” , but we’re turning into big Haiti…!!!! Sapienti Sat !!!
So basically Bank of America has better prognosis for the near future than the US which is currently in a recession with a very high inflation.