One of the most highlighted aspects by the President of the Republic, during his fifth accountability on February 27, was economic growth, which places the nation among “the most progressive” worldwide.
He mentioned that this achievement was achieved for the following reasons:
The President stressed that during 2024 the Gross Domestic Product reached an annual growth of 5%, higher than that of Latin America whose average was 2.5%, this places the Dominican Republic among the countries with the highest global economic growth in 2024 and consolidates our economy as one of the most dynamic in Latin America.
Likewise, according to projections by the International Monetary Fund, the country is one of the most attractive in the region to invest in, with greater social peace and an ideal agenda of reforms that will allow it to position itself in an important place.
“Today our country exhibits a success story throughout the region that combines growth and economic development, opportunities, social protection and poverty reduction at all levels,” Abinader said.
DR registers historic exports in the last four years
The Dominican Republic has had the best export records in the previous four years. In 2024, it had the best year, reaching more than US$13,852 million, for a growth of 7.1% compared to 2023 and a substantial increase of 23.8% compared to the pre-pandemic year 2019, according to data published by the Central Bank.
Regarding the attraction of foreign direct investment, the President stressed that the country attracted a record figure of US$4,512 million in 2024, consolidating three consecutive years exceeding US$4,000 million per year, thanks, among other things, to the legal security that our country enjoys. This upward pace would allow us to reach US$17,000 million in exports and a cumulative foreign investment of 20 billion in the next four years—a milestone that we are fully capable of achieving.
“These results place the Dominican Republic as the main country that attracts investment in Central America and the Caribbean. The energy and tourism sectors continue to lead the investments we receive. In this context, the United Nations positioned us as a special case in “Investment in energy transition and tourism development,” reaffirming the country’s attractiveness in these strategic sectors.
In turn, the Foundation for Innovation and Information Technology, based in Washington D.C., positively evaluated the country, recommending that international investors consider the Dominican Republic’s great potential as a strategic destination in the semiconductor industry. This recognition represents a major step in our plans to position the country as an important player in this strategic technology industry.
Public debt
At the end of 2024, the consolidated public debt concerning the Gross Domestic Product was 57.5%. In August 2020, when Luis Abinader assumed the presidency, this indicator was 61%. This data contrasts with the increase in debt in most countries due to the crisis.
The President added that in 2024, Fitch and S&P ratified the Dominican Republic’s rating at “BB—positive” and “BB stable,” respectively. In the different reviews, the international agencies highlight the country’s good economic performance, improvement in governance and institutionality indicators, good management of public debt, and adequate public policies that the government has implemented.
He added that the International Monetary Fund has recognized this prudent and proactive debt management. In its latest report, the Fund concludes that our country’s public debt is sustainable and that the policies that have been adopted are the right ones.
“Also on the economic level, I must highlight the increase in State revenue, which at the end of 2024 reached 16.3% of GDP, exceeding by 0.6% what was collected in 2023, thanks to the evolution of economic activity, the fight against tax evasion and fraud, the improvement of tax management and the income received as a result of the agreement with AERODOM. Thus, our fiscal deficit in 2024 stood at the budgeted 3.1, a very unusual situation in an election year.”
In August 2024, the Executive Branch enacted the Law on Fiscal Responsibility of State Institutions. This milestone reinforces the sustainability of public finances and aligns the country with international best practices. The main objective of this law is to establish a regulatory framework that guarantees prudent, transparent, and sustainable financial management in the short, medium, and long term, creating rules for fiscal behavior through the control of primary expenditures and the establishment of a debt anchor.
First green bond issuance in the Caribbean
In addition, the first issuance of sovereign green bonds for US$750 million maturing in 2036 was carried out, achieving a rate of 6.7%, 15 basis points lower than that achieved with other non-thematic financing instruments with a similar term, implying savings for public finances.
As an expression of foreign economic actors’ confidence in our country, this issuance received a demand from international investors six times higher than the amount issued. The resources obtained will be associated with green expenditures eligible under the first Green, Social, and Sustainable Bond Reference Framework of the Dominican Republic, published in June 2024. Importantly, this is the first green bond issuance in the Caribbean region.
Strengthened financial system
Added to this is the strength of our financial system, led by Banreservas, which in 2024 achieved an unprecedented achievement in the country’s financial history, achieving record profits of 27,566 million pesos. Last year, more than 240,000 citizens accessed the banking system for the first time, thus promoting financial inclusion, a key aspect of development.
In addition, Banreservas’ local and international presence has facilitated the banking penetration of thousands of Dominicans abroad, with more than 500,000 benefiting from its remittance services at reduced costs. In 2024, it marked another milestone by becoming the only bank with a presence in all the country’s municipalities, consolidating its leadership and commitment to national development.
The financial system remains one of the turbines of the Dominican economy, boosting credit. The banks’ total loan portfolio also grew by 12.5%, representing almost a third of the GDP, with a balance of 2.18 trillion pesos at the end of 2024.
This growth was driven by loans to the private sector, in pesos, which increased by double digits, by 10.3%, to RD$1.6 trillion. This dynamism in the banking sector has boosted the system’s assets to their highest historical levels, closing 2024 at RD$3.8 trillion, close to 57% of GDP. In addition to being able to continue financing the economy, the banking system is prepared to take on more significant challenges, with sufficient provisions and a solvency ratio of 17.43%, more than 7 points above the minimum required by law of 10%.
Refidomsa reinforces energy security
Regarding the public company Refidomsa, the head of state stressed that in December 2024, it inaugurated four new spheres for the storage of Liquefied Petroleum Gas, the result of an investment of 91 million dollars, which have allowed us to expand our reserve capacity from 14 to 40 days.
“This strategic advance reinforces our energy security and guarantees a safer future for all Dominicans. In addition, it is a source of pride to report that Refidomsa achieved 2024 the ‘Excellent’ classification in collective performance, achieving an outstanding cumulative score of 98%, an unprecedented achievement in 25 years.”
This company also maintained its AA+ credit rating in 2024, the highest in its history, according to the prestigious Fitch Ratings agency, reaffirming the soundness and transparency of our management. As part of its social responsibility, in June of this year, the doors were opened to the “Dr. José Francisco Peña Gómez” Technological Center in Haina, an initiative carried out in partnership with Infotep and with an investment of more than RD$227 million. This center is a beacon of training and development aimed at training professionals who will drive innovation and growth in our country. This formidable performance of our economy, with an enviable financial health and focused on attracting fresh resources to develop new cutting-edge sectors, is generating thousands of jobs.
Source link : http://www.bing.com/news/apiclick.aspx?ref=FexRss&aid=&tid=67c32a6e45d94798aec3823ffe51dab4&url=https%3A%2F%2Fdominicantoday.com%2Fdr%2Feconomy%2F2025%2F03%2F01%2Fluis-abinader-highlights-five-key-factors-that-place-the-dominican-republic-among-the-best-economies-in-the-world%2F&c=10915719100095785060&mkt=en-us
Author :
Publish date : 2025-03-01 02:03:00
Copyright for syndicated content belongs to the linked Source.
