The Dominican Republic’s economy is on track to return to pre-pandemic levels by 2021. Its gross domestic product (GDP), will reach an all-time high.
The news will come as the latest demonstration of the Caribbean nation’s economic reactivation, and will be welcomed by investors looking to register a company in the Dominican Republic, or are already there.
According to new figures released by the Dominican Republic’s Central Bank (BCRD), the country’s GDP will hit $91.6 billion by the end of 2021 — having sunk to $78.8 billion in 2020, when the global crisis was at its worst (all figures in USD).
Previously, the Dominican Republic’s GDP reached its highest point in 2019, at $88.9billion. according to World Bank data.
The new predicted figure would represent an annual GDP growth of 16% — far outstripping the 8% GDP growth predicted for the country by the UN’s Economic Commission for Latin America and the Caribbean (ECLAC) in early September.
The BCRD reports that the positive outlook for Dominican Republic’s economy is driven by strong results from the tourism sector. It generated 26.8% more revenue in the first half of 2019 than the same period in 2020.
This was due to a significant increase in visitor numbers. The 2.9 million visitors that visited the site up until August represented a 79.2% rise on the previous year. This number is expected to rise to 4.5 million by the end of this year.
The BCRD also highlighted how monetary policies introduced at the onset of the crisis in March 2020, and which injected funds equivalent to 5% of GDP into the economy, were also key to the country’s fast recovery.
Dominican growth highlights investment opportunity
Foreign investors who are interested in launching their businesses in the Dominican Republic will welcome the expected growth of the Dominican Republic economy.
The Dominican Republic economy, in terms of GDP, is the largest in the Caribbean and eighth in Latin America.
The country has seen a significant increase in its GDP since the 1990s, when it took a number measures to open the economy. In the two decades preceding the pandemic, GDP only fell once per year.
The rise in the economy has been accompanied with significant prosperity. Gross national income (GNI), has increased by over 80%. more than tripling between 2004 and 2019, to reach $8,100 per capita — placing the Dominican Republic as an upper.middle income nation by international standards.
GNI dropped during the pandemic but is expected to rebound this year with the Dominican Republic being one of the fastest-growing economies in Latin America.
The Dominican Republic is a popular destination for international capital. It has received foreign direct investment (FDI). hitting a peak of $3.6 billion in 2017. The country boasts many strong business opportunitiesInvestor confidence will increase as a result of the most recent economic predictions.
The country boasts a number significant attractions, including an extensive network of free trade zonesThese offer attractive tax incentives and are home to close to 700 companies nationwide.
The country’s main exports include agricultural goods like tobacco, fruits, and nuts as well as manufactured goods like clothes, medical equipment, electrical machinery, and medical equipment. Gold is another important export product. the value of exports leaping 80%This was earlier in the year.
Biz Latin Hub is able to help you do business in Dominican Republic
Biz Latin Hub has multilingual corporate support specialists available to assist with your Dominican Republic business entry and exit.
We offer a wide range of back office services including company formation, accounting & taxation, legal services, visa processing, and hiring & PEOWe can provide a customized package of integrated back-office services that will suit every need.
We also have teams in 15 other Latin American and Caribbean markets, and specialize on multi-jurisdictional market entry.
Contact us todayFind out how we can help your reach your commercial goals
Read more our team and expert authors.