Dominican Republic Economic Data & Projections

Dominican Republic Economic Outlook

Regional growth leader:

The Dominican Republic is the largest economy in the Caribbean and one of the fastest-growing in Latin America. Between 2010 and 2019, the country averaged GDP growth of over 5% annually, driven by robust investment, tourism, and remittances. Even after the pandemic-induced contraction of 6.7% in 2020, the economy rebounded swiftly, expanding by 12.3% in 2021. However, growth moderated in 2023 amid tighter monetary conditions and slowing external demand.

Tourism and remittances:

Tourism is a key pillar of the Dominican economy, with the country being the most visited destination in the Caribbean. The sector contributes over 15% of GDP and employs a significant share of the workforce. In 2023, the country welcomed a record 10 million visitors, boosting foreign exchange reserves. In addition, remittances—mainly from the U.S. and Spain—account for around 10% of GDP and serve as a vital source of income for many households, supporting private consumption.

Diversified economy:

Beyond tourism, the Dominican Republic has developed a diversified economic base, with strong performance in free-trade zone manufacturing, mining, and construction. The country is a leading global exporter of gold and ferronickel, benefiting from high commodity prices. Additionally, the government has sought to position the nation as a nearshoring hub, attracting investment in pharmaceuticals, electronics, and textiles to its export-oriented industrial parks.

Challenges and structural weaknesses:

Despite its strong economic trajectory, the country faces persistent structural challenges. Informality remains high, with over 50% of workers employed outside the formal sector. Public debt, at around 60% of GDP, has increased following pandemic-related spending. Inflationary pressures, exacerbated by global commodity price volatility, have also eroded purchasing power, prompting the central bank to tighten monetary policy. Additionally, energy supply constraints and inadequate infrastructure remain bottlenecks for long-term growth.

Dominican Republic economic outlook:

Looking ahead, the Dominican Republic’s economy is expected to continue outperforming the regional average, with GDP growth projected at 4–5% over the medium term. The country will benefit from sustained foreign direct investment, tourism expansion, and government infrastructure projects. However, downside risks remain, including external shocks, climate-related vulnerabilities, and fiscal sustainability concerns. Strengthening governance, improving education, and addressing income inequality will be key to maintaining the country’s economic dynamism.

Dominican Republic's Macroeconomic Analysis:

Nominal GDP of USD 121.8 billion in 2023.

Nominal GDP of USD 121.8 billion in 2023.

GDP per capita of USD 11,377 compared to the global average of USD 10,589.

GDP per capita of USD 11,377 compared to the global average of USD 10,589.

Average real GDP growth of 5.1% over the last decade.

Average real GDP growth of 5.1% over the last decade.

Sector Analysis

In 2022, services accounted for 56.0% of overall GDP, manufacturing 13.7%, other industrial activity 23.9%, and agriculture 6.4%. Looking at GDP by expenditure, private consumption accounted for 64.7% of GDP in 2023, government consumption 11.3%, fixed investment 31.3%, and net exports -7.3%.

International trade

In 2022, manufactured products made up 68.8% of total merchandise exports, mineral fuels 1.1%, food 12.2%, ores and metals 2.5% and agricultural raw materials 0.8%, with other categories accounting for 14.6% of the total. In the same period, manufactured products made up 70.2% of total merchandise imports, mineral fuels 16.4%, food 20.0%, ores and metals 1.6% and agricultural raw materials 1.3%, with other goods accounting for -9.5% of the total. Total exports were worth USD 13.90 billion in 2024, while total imports were USD 29.80 billion.