With a growth projected 5.2% for 2024, the Dominican Republic is positioned as a leader in Latin Americain a context where the average of growth regional will be just 1.8%, according to the most recent economic report of the Economic Commission for Latin America and the Caribbean (Cepal), presented yesterday.
This data reflects that the country will be able to reach its potential of growth of 5% as estimated by other international organizations at the end of 2023, such as the World Bank and the local authorities themselves, who set the goal of doubling the gross domestic product (GDP) by 2036.
In fact, the 5.2% awarded to the country in the Economic Study of Latin America and the Caribbean, 2024: Low Growth Trap, Climate Change and Employment Dynamics will be the percentage of growth highest among more than 20 countries, including Venezuela (5%), Costa Rica (4%), Paraguay (3.8%) and Honduras (3.8%). Among the Caribbean nations, Guyana maintains the lead with 29.2%.
Unlike these nations, Argentina and Haiti will end the year with red numbers of -3.6% and -3%, respectively, which, according to Daniel Titelman, director of the Economic Development Division of the Cepalindicates that these countries will enter an economic contraction.
“Dominican Republic It is one of the countries that has grown the most in recent years, with an average above the region“, Titelman said during his participation in the presentation of the study.
The challenges
However, the promising economic future that the CepalThe organization also notes some challenges that the country must face to maintain the stabilitylike the other nations. These challenges include the formalization of employment, adaptation to climate change and the investment in education.
According to the considerations of the Cepalthe future of the Dominican Republic It is promising, but will be marked by the country’s ability to implement policies effective that address these challenges in a comprehensive manner, including the closure of gaps labour laws in terms of gender and age.
4.5 %
The estimated growth rate for 2025 is also positive, at 4.5%.
“Be women and having a dependent increases the probability of being employed in the informal sector, which is not the same for men,” said Titelman.
The informality Global labor force reached 75% in the regionwith a greater number of women in positions in less productive sectors, the expert added.
As for the climate changeTitelman emphasized the need for international assistance so that the Dominican Republic and other countries of the region can face this global challenge. “The climate change It is a phenomenon that must be addressed in a comprehensive manner. Latin Americaa is required investment equivalent to between 5 and 8 points of the GDP (gross domestic product), in a region which currently invests very little,” he explained.
The projections by 2025 they are also positive for Dominican Republic. According to the Cepalthe country will grow by approximately 4.5%, staying above its peers in the region.
ECLAC revised downwards its growth forecast for the region in 2024, setting it at a modest 1.8%, three-tenths less than the 2.1% forecast in May. For 2025, the United Nations (UN) agency projects regional growth of 2.5%, driven mainly by South American countries.
