Benefiting from the natural resources and the main geographical location, the nation is studying the island a set of opportunities to expand exports and encourage foreign investment.
The cultural rapprochement with the United States and the tropical climate throughout the year have made the Dominican Republic an attractive destination for tourists from the north. However, the number of visitors has gone below, and has highlighted the new transfers tax in the “Grand and Beautiful Bill” law of President Donald Trump’s need for the nation to accelerate its long career that diversifies the economy.
“The Dominican economy has varied since the fall of Trujio’s dictatorship” in 1961, and Franklin Vasquez, economist and CEO of Cyfras Consultores. “We promoted and played financial capital, then we moved to enhance tourism, then free trade areas, then we opened the economy to new liberalism in the early 1990s. Then we supported the agricultural sector.”
Currently, the focus is on services and the creation of a logistics center, and the benefit of the proximity of the Republic to the interest of the United States and China in its inclusion in the Belt and Road Initiative.
Foreign investors can benefit from free trade areas, which includes the Dominican Republic 92 companies with 850 companies. Logistics companies, which represent 3.14 % of GDP in 2023, are treated in the same way, of taxes, such as those established in free trade areas. According to a recent report issued by the Ministry of Industry, Trade and Small Commerce (MICM), the GDP SIM cottage “can slip to 3.78 % over the next decade. Five logistical centers and 33 companies gather more than $ 2 billion of revenues annually, or 1.58 % of GDP of $ 126.2 billion in the country.
“With adequate policies, we must more complicate our export basket.”
Juan Ariel Jiminiz NunezFormer Minister of Economy
Eduardo Sanz Lovaton, Director of Customs, believes that the Dominican Republic has become the most important logistics center in the Caribbean. Besides her geographical location, Sanz notes that 20 % of foreign direct investment of $ 4.5 billion in the country in 2024 was directed to manufacturing. Companies including Hans and Timberland clothes manufacturers, airlines such as Eton, and IT companies such as Rokuel Automation have created facilities on the island.
The challenges facing companies that consider transportation include analogy to provide a rapidly growing Asian market; Education needs, especially for engineers; The occupancy rates in the advanced commercial gardens in the country, which range from 99 % to 100 %. But with the average age of the 28 -year -old worker, former Economy Minister Juan Ariel Jiminies Nunez sees an industrial responsibility as well. The workforce is “ready to learn, ready to speak English.” “I think we should try industrial goods: more medical devices and electrical components.”
This can help in the face of the challenge that the transfers of Trump’s conversion are one percent, which may cost the Dominican Republic more than 234 million dollars annually, according to the World Development Center. Tourism represents 8.3 % of GDP with value added; Along with transfers, this increases to nearly 30 %.
“With adequate policies, we must increase the complexity of our export basket.” “We must definitely do more tourism, but we have to do better tourism. We must do health tourism and tourism. It is not only a variety of tourism, but also works to diversify the tourism industry itself.”
The Republic has already enjoys a policy of diversification of tourism, which it can have added approximately 104,000 tourists from South America this year. Tourist visits have multiplied from Argentina since the signing of an open sky agreement in December 2024, which increased direct flights and included international promotion by the government. This helped to compensate 88,000 fewer tourists from North America in the first quarter of 2025, which the Ministry of Tourism explains as due to seasonal factors including the jump year and early celebrations of the holy week.
The increase in the country’s presence in business services (BPO), which currently brings $ 250 million annually, according to Statistica, is another option. At least 14 BPO starters currently operate in the capital of Santo Domingo, where they employ 36,000 workers at the call center. A report issued by Banco Central De La República Dominicana calculates that the industry has grown by 12 % annually over the past five years.
Doctor Geographical advantages
Another feature that the Republic can take advantage of is its northern port, Manzanilo, which is two days on a boat from the eastern American coast. Nowadays, the country mainly uses its southern ports, including Haina and Santo Domingo. While the country continues to develop the port of the cruise ship in Aroyu Barrell in the east, the northern coast is still ineligible.
Jiménez believes that the Dominican Republic can also be the main supplier of agricultural and industrial goods to the Caribbean islands. Beyond that, it argues by increasing integration with the United States and possibly Europe, but not Latin America, given that the United States offers clearer competitive advantages.
Another option is to diversify energy: in particular, nuclear energy.
In June, Gaddis Corporán Segura, Deputy Minister of Nuclear Energy, revealed that the nuclear law is ready to submit it to the House of Representatives. If the republic becomes nuclear, it will be the first Caribbean island to do so. Other short -term measures can include a doses calibration laboratory that can be used across the area. This would allow the Dominican Republic to calibrate the tools used in industry, medicine and research.
The Development Bank in Latin America and the Caribbean region (CAF) promised $ 2.5 billion in investment in the region to help improve the ocean economy. CAF goals include maintaining oceans, encouraging responsible tourism, managing the coast of the region, maintaining and restoring marine ecosystems, developing clean technologies and renewable ocean energy, carbon removal and maritime transport ports. In June 2024, the Dominican Republic issued its first green bonds at $ 750 million through the Ministry of Finance.
But despite the “good relations” between the Dominican Republic and the multiple in the region, Jiménez notes that the timing will be a major issue, because discussing such projects can take longer than many governments of the region. As a result, the Dominican Republic had to rely more on the issuance of sovereign bonds more than multilateral loans.
Mining has always been one of the largest export industries in the Republic. Last year, the sector contributed 43.3 % of the country’s exports and 1.4 % of GDP. China is a leading export market, and experts believe that alongside gold – which Barrrick Gold exploited successfully – mineral waste, zinc, bauxite, silver, and precious metals that offer great growth opportunities. The southeast of the country, in particular, can benefit from the new exploration grant from the government: Including, Vasquez says to oil.
Perhaps the most important economic trend in the Republic was the rapid increase in women who join the workforce.
“I think women were the greatest beneficiaries in the labor market and economic dynamics,” says Vacoyez. “Before that, you could have a labor market from 20 % to 30 %; now, we see that 50 % of the labor market is female. If you look at the financial system, the majority of bank employees and financial institutions are women. Dominican women have enabled themselves and trained themselves. They wanted to move forward.”
However, the biggest issue is the types of work that women believe. Assistance from the World Bank program aims to compensate for a balance of imbalance that only 18 % of female students choose information and communications technology, and women make up only 5 % of STEM graduates.
However, an economic participation by women has contributed to improving social stability in a country that already has economic and political hardness, according to Vakiz. A large number of laws and policies aim to reduce public spending, increase access to financial services, and possibly expand the tax base.
Looking at these features, “The Dominican Republic is diamonds in Latin America,” says Gamenies. “With adequate policies, especially with a better educational system, we can shine this diamond a lot.”
