The Dominican economy grew by 5.0% in 2024

By Guzmán Ariza, Attorneys at Law

The Central Bank of the Dominican Republic (BCRD) reported the preliminary results of the Dominican economy for the year 2024.

The real Gross Domestic Product (GDP) recorded a growth of 5.0% in 2024 compared to 2023, in line with the official projections from the Central Bank and the government, as well as with international organizations and both local and foreign private analysts’ expectations for the average performance in the recently completed year, which would align with the potential growth rate.

This performance was achieved in a context marked by high geopolitical tensions, relatively restrictive international financial and liquidity conditions, uncertainty associated with the internal electoral cycle at the beginning of 2024, and in the United States at the end of the year, as well as the scope and content of possible economic reforms. This reflects and demonstrates the strong macroeconomic fundamentals and resilience of the Dominican economy.

In fact, it is worth noting that the real GDP expansion in 2024 consolidates the Dominican Republic as a leader in growth in Latin America when compared to the 17 largest economies in the region, in line with estimates from various international organizations such as the International Monetary Fund (IMF), the World Bank (WB), and the Economic Commission for Latin America and the Caribbean (ECLAC).

Regarding the sectors that contributed the most to the average 5.0% expansion of real GDP in 2024, the services sector as a whole stands out with a growth of 5.5%. Within this sector, notable performances include activities such as hotels, bars, and restaurants (9.6%), financial services (8.3%), energy and water (7.0%), transportation and storage (5.7%), and commerce (5.5%).
In terms of industrial sector performance, local manufacturing recorded an average increase of 4.3% in 2024, mainly driven by the production of food products and the manufacturing of basic metals.

Additionally, the real value-added manufacturing in free trade zones also saw a year-on-year increase of 4.3%, reflected in exports under this regime, which amounted to USD 8,417.2 million during 2024.

On the other hand, national exports totaled USD 5,435.6 million, reflecting a growth of 8.9% compared to 2023, mainly due to the increase in gold and cocoa exports.

According to the BCRD, these results demonstrate the resilience of the productive sectors of the Dominican Republic and the strength of their macroeconomic fundamentals, placing the Dominican economy in a strong position to continue navigating the external and internal challenges that may impact its evolution. It is projected that the country will remain one of the economies with the highest growth in 2025, supported by the monetary easing program implemented at the end of 2024 to create favorable conditions that sustain the dynamism of economic activity in an environment of social peace and transparency, which translates into new foreign and domestic capital investments for the benefit of the country.