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 – and needs to address some key challenges to achieve a more inclusive and sustainable growth.

    The country’s economic growth has been one of the strongest in the LAC region over the past 25 years. Growth in 2017 decelerated to 4.6 percent, down from 6.6 percent in 2016, but was still close to the country’s annual average growth rate of 5.3 percent. Sustained by strong domestic demand, GDP is expected to grow close to 5 percent in 2018 and maintain this rate in the near future.

    The poverty rate fell from 30.8 percent in 2015 to 28.9 percent in 2016 according to official estimates. Poverty rate is expected to continue declining at a slower pace than in recent years as GDP growth approaches the country’s medium-term growth potential.

    The government has allocated 4 percent of GDP to the education sector every year since 2013. However, the DR’s narrow fiscal space and increasing public debt limits the country’s ability to spend more on developing human capital and enhancing private sector’s competitiveness. Therefore, efforts are needed to strengthen fiscal sustainability - particularly by raising tax revenues and improving public financial management, as well as building resilience to external shocks.

    Despite improvements in the ease of doing business, further reforms are needed to improve the country’s competitiveness, including in the water and electricity sectors.

    Last Updated: Sep 20, 2018

  • 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, which has been recently extended to FY19, is aligned with the government’s priorities and focuses on:

    • fostering conditions for equitable growth;
    • improving service delivery for the poor; and
    • building resilience.

    Currently, the World Bank’s active portfolio includes four projects with commitments of US$395 million: three investment operations in education, social protection and energy; and a contingent line of credit or Catastrophe Deferred Drawdown Option (Cat-DDO). The International Finance Corporation (IFC) has commitments of US$528.46 million, including $228.73 million in mobilization from IFC partners.

    The Multilateral Investment Guarantee Agency (MIGA) has a total of US$71.8 million in Guarantees Gross Exposure in road infrastructure.

    Last Updated: Sep 20, 2018

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

    • More than 500 Km of electric lines have been rehabilitated, reducing electricity losses and guaranteeing 24-hour service to 105,000 poor clients in rehabilitated circuits.
    • More than 150 Km of electricity transmission lines was repaired in four extremely poor provinces, benefiting more than one million people.
    • Three dams have been restored after storms Olga and Noel, which were key for flood reduction, water supply, irrigation, hydropower and environmental conservation.
    • About 24 irrigation schemes have been rehabilitated, benefiting 18,779 farmers producing fruits and vegetables, essential for local and national food security.
    • The water treatment facilities in Santo Domingo (CAASD) and in Santiago (CORAASAN) were restored to provide over a million gallons of safe drinking water to 750,000 people.
    • Irrigation systems have been rehabilitated across the country to service more than 37,200 hectares of irrigated lands and telemetry systems to measure river water flows were improved, which increased agricultural production for more than 18,700 farmers.
    • More than 30 local governments from vulnerable communities, received training on participatory budgeting, development planning, financial management, procurement and contracting, human resources and municipal services.
    • The national public system for procurement and distribution of medicines in public hospitals was strengthened and has helped cut costs of medicines, such as antibiotics and insulin.
    • A competitive selection system to raise the academic standards of newly recruited teachers and to improve education quality was rolled out.
    • The government established an advanced legal framework for Disaster Risk Management and has put in place an epidemiologic surveillance system and a rapid response mechanism to swiftly detect and manage health outbreaks.
    • In 100 days, over 3,600 cases of robbery and gender-based violence were solved, and justice sector leaders were trained to accelerate judicial processes through the “100 Days Challenge".
    • The DR has passed an insolvency law that will facilitate quicker and less costly commercial restructuring and is among the top 50 economies of the world where trading across borders is easiest.

    Last Updated: Sep 20, 2018

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