In December, $1,003.5 million was received for this purpose.
The Central Bank of the Dominican Republic (BCRD) reported that during the year 2024, the remittances received reached a figure of 10,756.0 million dollars, representing an increase of 598.8 million dollars, for a variation of 5.9% compared to the previous year, reflecting a result aligned with the institution’s projections.
In particular, in December, $1,003.5 million was received for this purpose, which means a year-on-year increase of 6.2%.
“It is essential to highlight the importance of these resources sent by the Dominican diaspora abroad, as they generate a multiplier effect on consumption, investment, and the financing of the most vulnerable sectors of the country,” indicated the BCRD in a press release.
The BCRD explains that the economic performance of the United States was a determining factor in the behavior of remittances, as 80.3% of the formal flows in December, equivalent to $710.5 million, came from that country.
On one hand, throughout 2024, the general unemployment rate in the US remained around 4.0%, close to full employment levels for the US.
Additionally, the Purchasing Managers’ Index (PMI) for non-manufacturing from the Institute for Supply Management (ISM) registered a value of 54.1 in December, two points above the 52.1 observed in November, indicating the expansion of the services sector, where a large part of the Dominican diaspora is employed.
The BCRD also highlighted the receipt of remittances through formal channels from other countries in December. In this regard, Spain contributed $55.9 million, which represents 6.3% of the total. This country has the second-largest number of Dominican diaspora residents abroad.
On its part, Italy and Haiti contributed 1.7% and 1.0% of the received flows, respectively. Additionally, other countries such as Switzerland, Canada, and Panama are identified among the sources of remittances.
Foreign Currency Generating Sectors
Following the recent evolution of the external sector, the BCRD estimated that, in addition to the value reached by remittances at the end of 2024, it is expected that:
- Income from the tourism sector would exceed $10,600 million.
- Flows of Foreign Direct Investment (FDI) would surpass $4,500 million, covering the current account deficit.
- Exports from free zones would amount to around $8,500 million, and national exports would exceed $5,400 million.
- These foreign exchange earnings would reach approximately $43,600 million, which would contribute to maintaining the relative stability of the exchange rate observed today, so that at the close of 2024, the national currency depreciated by just 5.0% compared to the close of 2023.
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