DR trails only Panama and Costa Rica in productivity.
Santiago, Chile—The Dominican Republic is third in labor productivity growth, behind Panama and Costa Rica.
The Dominican Republic is among the highest performers in labor productivity in Latin America and the Caribbean.
An Economic Commission for Latin America and the Caribbean (ECLAC) reveals the Dominican Republic’s labor productivity grew by more than 50% from 2005 to 2024. Panama and Costa Rica are the only countries with a higher growth rate.
Costa Rica also had a labour productivity increase of more than 50%. Other countries had either moderate or low productivity growth.
Moderate growth countries include Paraguay (49%), Bolivia (48%), Colombia (46%), Cuba (42%), and Chile (35%). Honduras (5%), Ecuador (5%), Mexico (11%), Jamaica (14%), El Salvador (15%), Argentina (15%), Brazil (17%), Trinidad and Tobago (18%), and Guatemala (23%) had low growth. Venezuela had a 52% drop.
The ECLAC report also compares the productivity of high-income and lower-middle-income countries in the region.
This study supports an earlier ECLAC report from December 2022, which classified regional countries by their average labor productivity growth in relation to the United States.
The Dominican Republic’s productivity growth was aided by factors like political stability, geographic location, infrastructure, foreign investment, institutional progress, tax shifts, and technological advancement.
Still, more reforms are needed to enhance the business environment and stimulate human capital, innovation, and research.