The Central Bank details the impact of foreign investment on the Dominican economy
- The Central Bank details the impact of foreign investment on the Dominican economy
The Dominican economy is expected to close 2025 with foreign currency revenues exceeding US$46 billion, driven by approximately US$11.7 billion in remittances, US$14.9 billion in exports, around US$11.2 billion in tourism income, and foreign direct investment (FDI) surpassing US$4.8 billion, according to projections reiterated yesterday by the Central Bank of the Dominican Republic (BCRD).
The monetary authority explained the main methodological aspects involved in compiling external sector statistics, particularly the measurement of FDI and the role of foreign exchange-generating sectors.
In an article published on its Página Abierta platform, the BCRD clarified that foreign investment is composed of capital contributions, reinvested earnings, and loans from parent companies abroad.
It emphasized that reinvested earnings form part of FDI because they represent profits generated in the country that are not repatriated but instead retained by investors as a long-term commitment.
The BCRD indicated that these data are submitted and validated with international organizations, and are gathered through quarterly forms sent by foreign investment companies.
It affirmed that its work adheres to international standards set by:
- The International Monetary Fund (IMF) — particularly the Balance of Payments Manual, BPM6
- The United Nations Conference on Trade and Development (UNCTAD)
- The Economic Commission for Latin America and the Caribbean (ECLAC)
- The Organisation for Economic Co-operation and Development (OECD)
- The World Bank
Estimation of tourism and remittances
The institution also explained that other components of foreign currency inflows—such as tourism and remittances—are estimated through surveys and regulatory platforms.
Tourism expenditure is calculated through a permanent survey conducted at airports, while remittances are recorded through reports from financial institutions in the Monetary and Financial Administration Portal (PAMF), complemented by pocket remittances captured in surveys.
The BCRD highlighted that between January and September 2025, foreign currency-generating sectors showed solid performance, contributing to exchange rate stability—the currency had depreciated 3.5% by the end of November—and to the strengthening of international reserves, which remain above US$14.4 billion.
This figure represents more than five months of imports and more than 11% of GDP.
Finally, the institution underscored that the country’s political and macroeconomic stability has positioned the Dominican Republic as a regional leader in attracting foreign currency, especially in foreign direct investment, and reiterated its commitment to transparency and statistical quality.
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