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 country’s economic growth has been one of the strongest in the LAC region over the past 25 years. However, it grew by only 4.6 percent in 2017, down from an average annual rate of 7.1 percent in 2014–16. Sustained by strong domestic demand, the GDP is expected to grow close to 5 percent in 2018 and maintain this rate in the near future.

    The poverty rate fell from 32 percent in 2015 to 30 percent in 2016 according to official estimates. It is expected to continue declining at a slower pace than in the past as GDP growth softens. The government has allocated 4 percent of GDP to the education sector every year since 2013. However, social spending in the Dominican Republic remains low compared to the rest of the region. More efforts are also needed to improve public financial management as public debt continues to rise and remain sensitive to external shocks.

    According to the World Bank Group’s Doing Business 2018, the Dominican Republic reduced the time to start a business and improved the reliability of electricity supply. Despite improvements in the ease of 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.

     

    Last Updated: Mar 26, 2018

  • Currently, the World Bank’s portfolio has commitments of US$422.5 million and the International Finance Corporation (IFC) has commitments of $408.24 million, including $197 million in mobilization from IFC partners.

    The Multilateral Investment Guarantee Agency (MIGA) has a total of US$75.45 million in Guarantees Gross Exposure in road infrastructure.

    The World Bank Group has a long-standing relationship with the Dominican Republic and has been providing financing, knowledge and advisory support in key areas. The current World Bank Group Country Partnership Strategy (CPS) for 2015-2018 is aligned with the government’s priorities and focuses on:

    ·       fostering conditions for equitable growth;

    ·       improving service delivery for the poor; and

    ·       building resilience.

     

    Last Updated: Mar 26, 2018

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

    ·       The Dominican Republic is among the top 50 economies of the world where trading across borders is easiest. In 2015, Santo Domingo and Santiago ranked third and fifth in the ease of starting a business out of 22 cities 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, among the poorest in the country, 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, and REDD Plus for greater transparency and conservation in mining and forestry.

    ·       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. 

    To better manage risk, the government has established a legal framework for Disaster Risk Management that is advanced among countries in the region. In addition, the government has in place an epidemiologic surveillance system and a rapid response mechanism to swiftly detect and manage outbreaks and public health-related events.

     

    Last Updated: Mar 26, 2018

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LENDING

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

*Amounts include IBRD and IDA commitments


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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
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