Remittances Grow 2.9% In The First Five Months Of 2023 In The Dominican Republic

• The Central Bank of the Dominican Republic (BCRD) has reported that remittances received in the first five months of 2023 reached $4,173.5Mn, representing a 2.9% increase compared to the same period last year.
• In May, remittances amounted to $881.1Mn, marking a 3.5% increase compared to May 2022. This is the fifth consecutive month of growth observed this year, continuing the positive trend since the last quarter of 2022, according to the BCRD’s press release.
• The BCRD explained that the economic performance of the United States has been a major influencing factor in remittance behaviour. In May, 85.4% of the formal remittance flows came from the United States, totalling $679.3Mn.
• Despite an overall increase in unemployment in the United States from 3.4% in April to 3.7% in May, Hispanic unemployment decreased from 4.4% to 4.0% during the same period.
• This bodes well for the sovereign as its economy remains heavily reliant on the US for investment flows, remittances, and export demand. On the flip side, however, this exposes the DR to downturns in the US economy; a shock to the US labour market, would limit inbound remittances to the Dominican Republic, constraining growth.

(Source: Dominican Today & Fitch Solutions)