The Dominican Republic is among the top 10 economies experiencing the greatest improvements in the index score of best countries to do business over the next five years compiled by the Economic Intelligence Unit of the Economist Group (a sister company of The Economistnewspaper.
In its most recent report on its ranking of the business environment, published this week, the Unit reports that the area in which the nation has improved the most is in the political environment and gauges the government led by President Luis Abinader as positive.
The reports states that “In the Dominican Republic, the current Abinader administration, which we hope will be re-elected in May, will continue with its business-friendly policies. It is encouraging investment in the tourism sector (e.g. with port upgrades for cruise ships) and improving logistics infrastructure to become a regional transport and distribution hub.”
The Unit places the Dominican Republic on a list that includes Greece, Argentina, India, Angola, Qatar, Kenya, Venezuela, Lithuania, and Serbia, referring to the countries that are improving the most in the business environment ranking for the next five years (2024-28) compared to the last five years (2019-23).
The Unit reports that these are not the same economies that will experience the fastest real gross domestic product (GDP) growth in 2024-28 (although it understands that Qatar and India will grow very strongly). “Rather, they are places where we expect the most significant improvements in policy, infrastructure investment, or growth in market opportunities.”
The report goes on to say, “Our model suggests that their improvement in our business environment index may subsequently result in a rebound in per capita growth in real GDP, investment spending, and FDI (foreign direct investment).”
Countries showing the greatest progress in business environment ranking
Change in Business Environment Scores from 2019-23 to 2024-28
*Out of 82 countries and territories.
| Country | Score change | Position* | Most improved category |
| Greece | 1.38 | 34 | Financing |
| Argentina | 1.32 | 54 | Foreign Investment Policy, Foreign Trade and Exchange Controls |
| India | 1.08 | 51 | Foreign Investment Policy, Foreign Trade and Exchange Controls |
| Angola | 10.1 | 78 | Market Operations, Private Company Policy |
| Qatar | 0.93 | 26 | Financing |
| Kenia | 0.93 | 68 | Infrastructure |
| Dominican Republic | 0.74 | 57 | Political environment |
| Venezuela | 0.73 | 82 | Market opportunities |
| Lithuania | 0.72 | 28 | Tax system |
| Serbia | 0.72 | 52 | Macroeconomic environment |
Source: Economist Intelligence Unit (EIU) • Author: Henry Hidalgo/Diario Libre
Together with Kenya and Angola, Venezuela is classified among the “places with weak business environments but with potential for improvement.” The report notes that “Venezuela is the lowest ranked” in the index “and will remain so despite a slight improvement after its painful economic collapse.”
Assessment
Out of the 82 countries and territories assessed in the 2024-28 ranking, the Dominican Republic is in 57th place.
91 indicators are evaluated distributed over 11 categories to give a comprehensive measure the attractiveness of doing business in these 82 locations:
- political environment
- Macroeconomic environment
- market opportunities
- policy towards free enterprise and competition
- foreign investment policy
- foreign trade and exchange controls
- taxes
- financing
- working market
- infrastructure
- technological preparation
Singapore is in the lead
Singapore is at the top of the ranking followed in that order by Denmark and the USA, which are considered the three countries with the best business environment over the next five years.
“Several Western European economies, along with Canada, Hong Kong and New Zealand, make up the rest of the world’s top ten places to do business. These are all advanced economies and have long been strong performers in our index, so they tend to be safe bets for investments,” the report adds.
However, it is noted that both overall and per capita GDP growth rates are likely to be “fairly stable and slow”.
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