flag República Dominicana República Dominicana: Panorama econòmic

Economic Indicators

For the latest updates on the key economic responses from governments to address the economic impact of the COVID-19 pandemic, please consult the IMF's policy tracking platform Policy Responses to COVID-19

The Dominican Republic – one of the top tourist destinations in the Caribbean - has experienced one of the highest growth rates in the region over the last few years. This strong performance is driven by tourism, and the construction sector. According to the updated IMF figures, GDP grew by an estimated 9.5% in 2021, mainly driven by a recovery in the tourism industry, as well as a significant rebound in the job market and strong remittances from expatriates in the U.S., which boosted household consumption. The country's economy should continue to grow in the coming years, albeit at a slower pace, with the IMF predicting a GDP growth of 5.5% in 2022 and 5% in 2023.

The country's inflation rate increased to an estimated 7.8% in 2021, but it is expected to decrease to 4.5% in 2022 and 4% 2023, according to the latest World Economic Outlook of the IMF. Public deficit, estimated at -1.3% of the GDP in 2021, a significant fall compared to the previous years. However, the 2021-2022 budget, projects a slight recuperation of the public deficit. Public debt also decreased, reaching an estimated 66.1% in 2021, and it is expected to decrease slowly in the forecasted horizon (63.8% in 2022 and 62.2% in 2023). According to the IMF, the current account deficit was equal to 2% of the GDP in 2021, and it is foreseen to remain stable in 2022 and 2023. In August 2020, Luis Abinader, from the Partido Revolucionario Moderno, became President of the country. His government aims to established a minimum wage and to reform the fiscal system according to the advices of the IMF with the goal to increase government revenues by 8% thanks to a more efficient tax and customs collection. In order to face the current economic crisis due to COVID-19, the government obtained loans from the IMF (USD 650 millions) and from the World Bank (USD 250 millions). Among the risks facing the country are the rise in oil prices and the tightening of global financial conditions, and the various corruption scandals that are threatening social peace. However, taxes on petroleum products coupled with the rise in the price of oil have also been causing discontent. In 2018, the Dominican Republic broke off diplomatic relations with Taiwan, which led to the opening of a Chinese embassy in the country and the development of trade relations. As a result, Chinese investments have been increasing in recent years.

The unemployment rate stood at 7.4% in 2021, but is expected by the IMF to decrease to 6.6% in 2022 and to 6.2% in 2023. Moreover, the informal sector remains important. More than 40% of Dominican children are uneducated, and rates in rural areas are particularly high, as most children in the countryside do not have easy access to schools. The Dominican Republic is a middle-income country where significant inequalities persist. According to the latest data from the World Bank, 20.1% of the population lives below the poverty line; however, the country has made significant progresses in this area, as the rate has been steadily decreasing. Moreover, the country has a very high rate of criminality, especially due to drug-trafficking networks, even within the army and the police. The Dominican Republic is also a hub for the traffic of cocaine from South America and money laundering.

 
Main Indicators 201920202021 (e)2022 (e)2023 (e)
GDP (billions USD) 89.03e78.9289.5097.37104.39
GDP (Constant Prices, Annual % Change) 5.1e-6.79.55.55.0
GDP per Capita (USD) 8,596e7,554e8,4929,1589,733
General Government Balance (in % of GDP) 0.2-3.3e-1.31.01.0
General Government Gross Debt (in % of GDP) 53.571.5e66.163.862.2
Inflation Rate (%) 1.83.8e7.84.54.0
Current Account (billions USD) -1.19-1.54e-1.79-2.00-2.09
Current Account (in % of GDP) -1.3-2.0e-2.0-2.1-2.0

Source: IMF – World Economic Outlook Database - October 2021.

Note: (e) Estimated Data


 
Monetary Indicators 20162017201820192020
Dominican Peso (DOP) - Average Annual Exchange Rate For 1 EUR 49.0253.7558.4257.6464.56

Source: World Bank - Latest available data.

 

Main Sectors of Industry

 
Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 8.8 18.8 72.4
Value Added (in % of GDP) 6.0 30.3 57.2
Value Added (Annual % Change) 2.8 -6.3 -8.2

Source: World Bank - Latest available data.

 
Socio-Demographic Indicators 20212022 (e)2023 (e)
Unemployment Rate (%) 7.46.66.2

Source: IMF – World Economic Outlook Database - Latest available data

 

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The Active Population in Figures

201820192020
Labour Force 5,029,4285,199,1034,858,960

Source: International Labour Organization, ILOSTAT database

 
201720182019
Total activity rate 67.92%69.84%71.05%
Men activity rate 81.33%83.22%83.66%
Women activity rate 54.57%56.52%58.49%

Source: International Labour Organization, ILOSTAT database

 

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Indicator of Economic Freedom

Definition:

The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labour freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.

Score:
62,1/100
World Rank:
88
Regional Rank:
17

Economic freedom in the world (interactive map)
Source: Index of Economic Freedom, Heritage Foundation

 

Business environment ranking

Definition:

The business rankings model measures the quality or attractiveness of the business environment in the 82 countries covered by The Economist Intelligence Unit’s Country Forecast reports. It examines ten separate criteria or categories, covering the political environment, the macroeconomic environment, market opportunities, policy towards free enterprise and competition, policy towards foreign investment, foreign trade and exchange controls, taxes, financing, the labour market and infrastructure.

Score:
5.20/10
World Rank:
67/82

Source: The Economist Intelligence Unit - Business Environment Rankings 2020-2024

 

Country Risk

See the country risk analysis provided by Coface.

 

Indicator of Political Freedom

Definition:

The Indicator of Political Freedom provides an annual evaluation of the state of freedom in a country as experienced by individuals. The survey measures freedom according to two broad categories: political rights and civil liberties. The ratings process is based on a checklist of 10 political rights questions (on Electoral Process, Political Pluralism and Participation, Functioning of Government) and 15 civil liberties questions (on Freedom of Expression, Belief, Associational and Organizational Rights, Rule of Law, Personal Autonomy and Individual Rights). Scores are awarded to each of these questions on a scale of 0 to 4, where a score of 0 represents the smallest degree and 4 the greatest degree of rights or liberties present. The total score awarded to the political rights and civil liberties checklist determines the political rights and civil liberties rating. Each rating of 1 through 7, with 1 representing the highest and 7 the lowest level of freedom, corresponds to a range of total scores.

Ranking:
Partly Free
Political Freedom:
3/7

Political freedom in the world (interactive map)
Source: Freedom in the World Report, Freedom House

 

Indicator of Freedom of the Press

Definition:

The world rankings, published annually, measures violations of press freedom worldwide. It reflects the degree of freedom enjoyed by journalists, the media and digital citizens of each country and the means used by states to respect and uphold this freedom. Finally, a note and a position are assigned to each country. To compile this index, Reporters Without Borders (RWB) prepared a questionnaire incorporating the main criteria (44 in total) to assess the situation of press freedom in a given country. This questionnaire was sent to partner organisations,150 RWB correspondents, journalists, researchers, jurists and human rights activists. It includes every kind of direct attacks against journalists and digital citizens (murders, imprisonment, assault, threats, etc.) or against the media (censorship, confiscation, searches and harassment etc.).

World Rank:
50/180

Source: World Press Freedom Index, Reporters Without Borders

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Sources of General Economic Information

Main Online Newspapers and Portals
Dominican Today
Al Momento (in Spanish)
CDN (in Spanish)
El Día (in Spanish)
El Nacional (in Spanish)
Useful Resources
Ministry of Finance
Ministry of Foreign Affairs
Ministry of Public Administration
Ministry of Industry, Commerce and MSMEs
Ministry of Economy, Planning and Development
Ministry of Environment and Natural Resources
Ministry of Public Works and Communications
Official list of ministries and their websites
Central Bank of the Dominican Republic
 
 

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Latest Update: April 2022

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