Santo Domingo.- The World Bank’s chief economist for Latin America and the Caribbean, William Maloney, expressed hope for the normalization of the situation on the Dominican-Haitian border. The border has been closed due to a binational conflict over the use of water from the Masacre River. He highlighted that stability in the region is an attractive factor for foreign investment.
Maloney mentioned that the Dominican Republic, like many other islands in the area, has potential for nearshoring. This can be used to attract foreign investment.
In terms of economic growth, World Bank projections for the Dominican Republic indicate a growth rate of 3.1% in 2023 and 4.6% for the following year. These growth rates are positive by regional standards, but they represent a slight reduction from previous estimates. The World Bank had initially projected a growth rate of 4.1% for 2023 and 4.8% for 2024 in June of the same year.
Maloney highlighted that the Dominican Republic has shown sustained growth in productivity compared to many other countries in the region.
At the regional level, the World Bank estimates that Latin America will experience stronger-than-expected growth in 2023. The projected GDP growth rate is 2%, up from the previous estimate of 1.4%. However, this growth rate is still below that of other regions of the world. The report suggests that stronger-than-expected GDP growth in the United States and the performance of G7 nations are helping the region’s economic prospects.
In terms of individual countries in the region, Mexico is expected to grow by 3.2%, Brazil by 2.6%, Peru by 0.8%, and Colombia by 1.5%. Argentina is projected to experience a 2.5% decline in GDP, while Chile is expected to experience a 0.4% decline.