Tourism Leads in Attracting Foreign Direct Investment in the Dominican Republic

• Tourism and energy activities represent the main sources of Foreign Direct Investment (FDI) in the Dominican Republic and have resulted in significant inflows for the country in 2023.
• According to statistical data from the Export and Investment Center of the Dominican Republic (ProDominicana), foreign investments in the tourism sector grew from US$1.05Bn to US$1.18Bn between 2022 and 2023.
• Furthermore, the energy sector saw a significant increase in FDI from US$749Mn to US$1.07Bn between 2022 and 2023. Overall, total FDI inflows amounted to US$4.39Bn in 2023 supported by growing sectors like commerce, real estate, free trade zones, mining, and finance.
• The United States, was the most significant source of foreign investments in the country, followed by Spain, Mexico, and Canada.
• Overall, the Dominican Republic has strong macroeconomic fundamentals and a diversified economy, becoming a manufacturing and service hub to take advantage of trade agreements as well as to continue to grow and attract foreign direct investment.
• Given this, the International Monetary Fund (IMF) forecasts strong growth in 2024 and beyond, with the consensus at 5% annually for the rest of the decade, barring any major domestic or international events.

 (Source: Dominican Today & NCBCM Research)