The Swiss financial firm assessed the country’s potential for investment
According to global financial services and investment firm UBS, the Dominican Republic has shown constant signs of stability and expansion, reaching 5% growth in its gross domestic product in 2024, and predicts a growth projection of 4.5% by the end of 2025.
In its most recent report entitled “Dominican Republic: peace and tranquility; investing in emerging markets”, UBS points out that the growth achieved in 2024 exceeded 2% of the region in Latin America, which consolidates it as one of the “strongest economies in the Western Hemisphere”.
The Swiss company believes the country will continue a positive growth trend in 2025 due to “strong solid fundamentals” that should continue to boost domestic demand, in addition to being “better positioned” than other nations to face the challenges posed by an increasingly volatile international context, including the possible tariffs that the United States will apply this year.
“It should be noted that the country has a trade agreement with the United States (…), but they are hardly talked about. In times like these, being away from the spotlight is desirable, in our opinion,” they highlighted.
In the macroeconomic sphere, they highlighted that the Dominican authorities reached important milestones last year, such as a primary surplus, a milestone “reached by few” in emerging countries, and the control of inflation due to monetary policy.
Investment Opportunities
Similarly, the firm highlights that investment will be one of the economy’s main growth engines this year, encouraged by the rise in loans in the financial sector which has allowed investment to increase by 4% annually in the last four years.
Investments will also strengthen job creation, creating a “virtuous circle” that will favor economic expansion.
Sovereign bond performance
UBS also highlights that the Dominican Republic has been the only Latin American country that has recorded positive returns on its sovereign bonds in Dollars with respect to the risk-free rate of the United States. In 2024, the yield on sovereign bonds was 4.4%, outperforming countries such as Mexico (-4.4%) and Brazil (-1%). This is due to a combination of business-friendly structural reforms, policy continuity and a resilient economy, with consistent returns and little “turbulence”, according to the analysis.
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