The Dominican Republic (DR) has risen to become the seventh wealthiest nation in Latin America and the Caribbean, overtaking larger economies like Brazil and Mexico.
The country’s GDP per capita, measured in Purchasing Power Parity (PPP), now stands at an impressive US$27,120, reported Dominican Today, citing data from Global Finance.
This achievement is particularly remarkable given the DR’s size and regional context. It has outpaced Argentina (US$26,390), Mexico (US$25,963), Brazil (US$20,809), Colombia (US$19,770), Peru (US$16,631), and Paraguay (US$16,291), nations traditionally considered economically stronger and more diversified.
The Dominican Republic’s steady rise is largely attributed to decades of economic growth and a stable currency. Key sectors such as tourism, free-trade zones, and remittances form the backbone of the nation’s economy, contributing to its increasing prosperity.
Despite its rapid progress, the DR still trails behind the region’s top six economies. Panama leads with a GDP per capita PPP of US$44,797, followed by Puerto Rico (US$43,219), Trinidad and Tobago (US$32,685), Chile (US$31,005), Uruguay (US$30,170), and Costa Rica (US$28,558).
Purchasing Power Parity (PPP) is widely regarded as one of the most accurate indicators of a country’s economic health. Unlike nominal GDP, which can be distorted by exchange rate fluctuations, PPP focuses on the actual value of money in each country, providing a clearer picture of economic well-being.
According to the International Monetary Fund (IMF), the Dominican Republic has maintained an average annual growth rate of around 5% since the 1970s, with notable achievements in poverty reduction and living standard improvement.
However, the IMF also flagged high government debt as a concern, noting that a large portion of financial resources is diverted to debt interest payments. The IMF suggested that raising tax rates could further enhance the country’s economic performance.
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Publish date : 2024-10-10 06:03:00
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