The Dominican Republic is experiencing robust economic growth, as both foreign investment and tourists pour into the country.
The Caribbean’s largest economy is on course to grow almost 6% this year, according to the country’s central bank governor Hector Valdez.
The high rate of vaccination, emergency economic stimulus, and an astonishing recovery in the tourism sector all contribute to the growth in the overall economy.
The Dominican Republic received US$3 billion in foreign investment in 2021, the highest foreign inflow since 2017, according to Bloomberg.
Considering the data released by the country’s Central Bank, the economy of the Dominican Republic has reached the pre-pandemic levels. The island’s economy expanded more than 12% last year.
However, there appear to be a few stumbling blocks on the way ahead. Inflation is soaring, pushing up consumer prices across the country.
The central bank has already increased interest rates by 2 percentage points and withdrawn excessive cash in the economy in a desperate attempt to cool down the inflation, which is already over 8.5%.
“Shipping costs from China surged to about $20,000 per container, about 10 times more than the pre-pandemic level,” reported Bloomberg quoting the central bank chairman as saying.