Overview

  • The Dominican Republic has enjoyed strong economic growth in recent years and a significant reduction in poverty, although the country remains vulnerable to natural disasters such as hurricanes and earthquakes.

    The Dominican Republic’s economic growth has been one of the strongest in the LAC region over the past 25 years. In the first quarter of 2017, the economy expanded by 5.2 percent, following yearly average growth of 7.1 percent between 2014-16. This contrasted sharply with that of the average 1.4 percent contraction for the LAC region in 2016.

    The share of Dominicans living in poverty (about 152 Dominican pesos a day) fell sharply from 42.2 percent in 2012 to 30.5 percent in 2016, according to official estimates. Yet, social spending in the DR remains low compared to the rest of the region. On average, total health spending in the DR increased from roughly 2.2% of GDP in 2000 to 2.9% in 2014, compared to the regional average of 3.7%. However, the Government remains committed to allocate every year 4% of GDP to the education sector.

    According to the World Bank Group’s Doing Business 2017, the Dominican Republic made getting an electricity connection faster and paying taxes less costly. However, despite improvements in doing business, further reforms are needed to improve the country’s competitiveness.

    Better water and electricity services are also needed to support growth in tourism, agriculture and manufacturing. While debt levels continue to rise, debt trajectory remains sustainable and progress has been made in recent years, including in diversifying financing sources.

     

    Last Updated: Sep 29, 2017

  • Currently, the World Bank’s portfolio has commitments of US$422.5 million and the International Finance Corporation (IFC) has commitments of $265.78 million, including $60.5 million in mobilization from IFC partners.

    The Multilateral Investment Guarantee Agency (MIGA) has current gross exposure of US$80.2 million supporting foreign investment in road infrastructure.

    The World Bank Group’s 2015-2018 Country Partnership Strategy commits to a US$550 million World Bank lending program and approximately US$200 million from the International Finance Corporation, as well as guarantees from the MIGA in response to market demand. A review of the strategy is currently underway to take stock of the results achieved so far and align the program to the new Government’s priorities.

    At the end of the strategy period, the World Bank Group hopes to achieve results in the following areas:

    ·       fostering conditions for equitable growth;

    ·       improving service delivery for the poor; and

    ·       building resilience.

    Last Updated: Sep 29, 2017

  • Government projects financed by the World Bank Group yielded important results in recent years, including:

    ·       The Dominican Republic is among the 50 economies of the world where trading across borders is easiest and the cities of Santo Domingo and Santiago ranked third and fifth in the ease of starting a business out of 22 cities analyzed in 6 countries of Central America and the Dominican Republic.

    ·       The DR has passed an insolvency law that will facilitate quicker and less costly commercial restructuring.

    ·       Rehabilitation of 520 Km of electric lines, reducing electricity losses and guaranteeing 24-hour service to 105,000 poor clients in rehabilitated circuits.

    ·       Rehabilitation of two major dams after storms Olga and Noel, and repair of 152 Km of transmission lines in four extremely poor provinces.

    ·       Rehabilitation of 11,500 hectares of irrigated lands, enabling an increase in agricultural production and enhanced telemetry systems to measure river water flows.

    ·       31 local governments received training on participatory budgeting, development planning, financial management, procurement and contracting, human resources and municipal services.

    ·       The Dominican Republic has been accepted as a candidate in the Extractive Industries Transparency Initiative.

    ·       Support to transparency in the national public system for procurement and distribution of medicines in public hospitals, which helped cut costs of medicines, such as antibiotics and insulin.

    ·       Rollout of a competitive selection system to raise the academic standards of newly recruited teachers and improve education quality. 

    Last Updated: Sep 29, 2017

Api


LENDING

Dominican Republic: Commitments by Fiscal Year (in millions of dollars)*

*Amounts include IBRD and IDA commitments


PHOTO GALLERY

More Photos Arrow

Additional Resources

Country Office Contacts

DOMINICAN REPUBLIC +809 872 7300
Ave. Lope de Vega No. 29, Torre Novo-Centro, Piso 10, Ensanche Naco, Santo Domingo
adelapaz@worldbank.org
USA +1 202 458-2656
1818 H Street NW, Washington, DC 20433
cchapoy@worldbank.org