Governor Valdez Albizu received a delegation from four credit entities evaluating the country’s economic situation.
The Governor of the Central Bank of the Dominican Republic (BCRD), Héctor Valdez Albizu, welcomed a delegation of international investors led by the investment bank Morgan Stanley, to hold a discussion on the current state and prospects of the Dominican economy.
During the meeting, held at the BCRD, the multinational financial firm, as stated by its representative Raúl Gallegos, emphasized the strength that the Dominican Republic reflects compared to other economies in the region, as indicated in a press release by the entity.
Gallegos highlighted the “very positive” outlook on the credit rating of the Dominican Republic compared to other countries in the region and the satisfactory performance of bonds, coupled with the results achieved in various economic, monetary, and financial parameters.
He also highlighted a favorable business climate, which bodes well for international investors turning their attention to the Dominican Republic.
Meanwhile, Governor Valdez Albizu emphasized the outstanding resilient performance of the Dominican economy in recent years, noting that since the second half of 2023, economic activity has maintained a process of recovery, supported by monetary stimulus measures and increased public investment.
The press release underlines that the economy recorded a year-on-year expansion of 7.8% in April 2024, contributing to an average growth of 5.1% in the first four months of the year, close to its potential.
Turism’s Impact on Economic Growth Highlighted
The Governor highlighted the leading role of tourism in economic recovery, resulting from the arrival of 4.2 million non-resident visitors during the first four months of 2024, equivalent to a 12% year-on-year increase, of which approximately 3.1 million arrived by air and 1.1 million by cruise.
He also emphasized the year-on-year growth of value-added during the January-April period of this year:
- Financial services (7.1%)
- Construction (6.4%)
- Free trade zone manufacturing (6.0%)
Valdez Albizu stated, “Going forward, it is expected that the dynamism of private credit and increased public investment will contribute to the economy growing around 5.0% in 2024, one of the highest expansions in Latin America.”
He also mentioned that foreign direct investment (FDI) reached $4.39 billion in 2023, with tourism, energy, commerce, and real estate being notable sectors.
In that regard, the press release notes that in the first quarter of 2024, FDI stood at $1.281 billion and is expected to exceed $4.5 billion by the end of the year, fully financing the current account deficit.
Additionally, the Governor specified that in January-April 2024, remittances maintained high dynamism, reaching $3.495 billion, and are expected to exceed $10.4 billion by the end of the year.
In this regard, he said that the good performance of foreign exchange-generating activities has contributed to the Central Bank maintaining high levels of international reserves, which currently exceed $14 billion (equivalent to five months of imports and nearly 11% of gross domestic product).
The Governor was accompanied by the Vice Governor, Clarissa de la Rocha de Torres; Joel Tejeda Comprés, Deputy Manager of Monetary, Exchange, and Financial Policies; Ramón Antonio González Hernández, Deputy Manager of National Accounts and Economic Statistics; Julio G. Andújar Scheker, Economic Advisor to the Governor; and Joel González, Director of the Monetary Programming and Economic Studies Department.
Along with Raúl Gallegos, a delegation consisting of Emma Cerda from Morgan Stanley and representatives from investment corporations Omar Reynoso of Northwestern Mutual, Martin Soler of HSBC AM, and Sebastián Derby of Artisan were present.
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