The Future is Bright for the Dominican Republic

The Dominican Republic has a GDP of $114 billion USD.
The Dominican Republic is developing at a significant rate. Effective strategic planning over the last 50 years has improved their economy drastically, with booming tourism and a rapidly growing technology industry.

With all this growth, economists are confident the GDP of the Dominican Republic will continue to grow strongly into the future. You can send money to the Dominican Republic with e-Pocket.

How Significant has the Growth Been?

Going all the way back to the 1960s, the Dominican Republic was actually one of the poorest countries in Latin America. The progress since then has been nothing short of remarkable, specifically in regards to income growth. In fact, according to the International Monetary Fund (IMF, people in the Dominican Republic now have a standard of living approximately one-third that of those in the United States. This is despite the average standard of living across Latin America being around a quarter that of the United States. The IMF goes on to explain that the Dominican Republic “has the potential to become an advanced economy in the next 40 years”.

This growth comes on the back of half a century of development. Before this time, the Dominican Republic had a largely agriculture-based economy. But things have changed. With the growth of free trade zones, manufacturing became a far larger portion of the Dominican economy, which has now morphed into a largely service-based economy. The growing tourism industry has also provided the opportunity to take advantage of all these improvements.

The impacts on the population have been extraordinary. The poverty rate has been reduced by two-thirds in just three decades, and Dominican families now have four times the spending power they had 50 years ago. The economy has grown by an average of 5% per year over the last 50 years – a trend the IMF expects will continue, “and eventually transform the Dominican Republic into an advanced economy by approximately 2060”. Such an advance would be more than welcome.

You can send money to the Dominican Republic today using e-Pocket.

The 2024 Dominican economy

The Asociación de Bancos Múltiples de la República Dominicana (ABA) believe the Dominican economy will remain resilient in 2024. Nonetheless, the country has had to face the uncertainty of an election year, as well as various international scenarios that affect supply chains and markets.

Economists broadly agree that the remainder of the year should be positive for the Dominican economy, even if there is a lot of uncertainty. For example, economic analyst Henry Hebrard believes the economy will grow by around 5.5%. César Dargam, the vice-president of CONEP, also thinks the GDP growth will be greater than the 4.86% of last year. Additionally, Hebrard and Dargam both agree that the execution of public spending will need to be effective. This is within the context of a broadly uncertain world situation, which is expected to lead to lower than usual global GDP growth in 2024. Then there is the consideration of what fiscal decisions the government will make after taking office on August 16.

One area of near certainty, though, is the continued success of the tourism industry.

Tourism is Booming in the Dominican Republic

The Dominican Republic recovered very quickly from the Covid-19 pandemic, and this was largely due to their incredibly successful tourism industry. The country welcomed 14% more tourists in 2023 than 2019; a truly strong post-pandemic recovery. This was their greatest ever year of tourism, as they passed the 10 million mark for the first time in history. This is despite the country only having a population of 11 million people. The tourism industry alone accounts for more than 620,000 direct jobs in the Dominican Republic.

Senior director of intelligence at ForwardKeys, Juan Gomez Garcia, said “We have to highlight the marketing strategy that [the Dominican Republic] is carrying out to reach premium markets”. They developed a robust plan after the tourism industry basically closed down during the pandemic. Effective marketing meant millions of people around the world were eager to visit the country once travel restrictions were lifted. They were able to secure large investments from hospitality and travel companies as well, which has meant the development of the industry overall has been significant. Garcia added that “These and [the country’s] other strategies are having a direct impact on the increase in arrivals this year versus previous years”.

David Collado, the Dominican Republic tourism minister, is very proud of the inventive techniques used to take advantage of non-traditional markets, and also in promoting luxury, sports, and wellness. “Reinstalling traveller confidence must be the priority for all tourism destinations,” said Collado. He added that: “The consumer attitude towards brands and destinations is changing – something tourism authorities need to [account] for to give them full advantage of recovery once travellers begin to plan their next adventure.”

The Dominican Republic has seen a massive rise in urban tourism, largely inspired by a significant increase in family-friendly activities.

Tech Manufacturing in the Dominican Republic

The Dominican Republic has an increasingly successful technology industry. They export many electrical products and electrical devices; 87% of which go to the United States. They are making significant efforts to attract overseas investments in high-tech sectors, as the long-term plan to expand economic horizons in the Dominican Republic is beginning to materialise. They now boast the United States as a strong strategic ally, and their political and social stability, as well as their growing economic strength indicates a very bright future.

Remittance to the Dominican Republic

Lots of money is being remitted to the Dominican Republic. In 2022, $954.5 million USD was sent to the country from other countries. You canremit money to the Dominican Republic with e-Pocket, using either our website or our app.

Conclusion

On the economic front, the Dominican Republic is going from strength to strength. Continued social and political stability, as well as effective planning will see further growth and a very bright future. With e-Pocket, you can send money to more than 100 countries. Visit our blog page to learn more.