Dominican Republic profile

Demography and Health

The Dominican Republic had an estimated population of about 11.43 million people in 2024, placing it as a mid-sized Caribbean economy in terms of population scale. Population dynamics interact with the country’s labor market, public services, and demand for housing and infrastructure, shaping policy priorities for inclusive growth. Life expectancy at birth stands at 73.7 years (2023), reflecting improvements in health outcomes relative to earlier decades, yet signaling ongoing health system and social determinants influences that affect longevity. The crude birth rate is 17.9 per 1,000 people (2023), while the crude death rate is 6.25 per 1,000 (2023), illustrating a demographic profile transitioning with urbanization and changing fertility patterns. Unemployment is reported at 5.55% in 2023, a relatively moderate level by international standards, but the structure of employment—often informal or underemployed—can influence real earnings and social protection coverage. The under-5 mortality rate is 31.4 per 1,000 live births (2023), indicating substantial improvements over time yet remaining a critical indicator for maternal and child health programs and preventive care. Prevalence of undernourishment is 4.6% of the population (2022), suggesting that a portion of households remains vulnerable to food insecurity, while poverty headcount is 23.0% (2023), underscoring ongoing social and regional disparities that policy makers must address through targeted social protection and investment in human development. In migration terms, net migration in 2024 is negative at -34,806, signaling outward movement of people due to economic opportunities or other push factors. While remittances can cushion households, persistent outflows of working-age adults may affect long-run growth potential and skill formation. Internet penetration is increasingly high, with 84.6% of the population using the Internet in 2023, enabling digital inclusion, e-government, and online education—an important asset for development amid global connectivity. Health funding shows a relatively modest share of GDP, with current health expenditure at 4.57% of GDP in 2022 and domestic general government health expenditure per capita (PPP) of $610 (2022). Physician density stands at 2.23 per 1,000 people (2022), highlighting ongoing needs to expand the health workforce and primary care access to improve equity and outcomes. Taken together, the health and demography data point to meaningful progress but also to enduring challenges in maternal and child health, nutrition, health system capacity, and inclusive labor markets that will require sustained public investment and reform.

Economy

The Dominican Republic presents a middle-income economic profile with GDP per capita of $10,876 in current US dollars (2024) and a purchasing power parity (PPP) per capita of $27,541 (2024), signaling meaningful material living standards while also reflecting a gap to more advanced economies. Inflation sits at 3.3% (2024), indicating moderate price stability that supports consumer confidence and investment planning. The economy relies on a mix of services, tourism, manufacturing, and tradable sectors, with external trade playing a significant role. Exports of goods and services account for 22.8% of GDP in 2024, while imports represent about 29.0% of GDP, illustrating a relatively open economy that depends on global supply chains for consumer goods and intermediate inputs. The current account balance is negative at -3.35% of GDP (2024), pointing to a modest external deficit that could be financed through FDI or durable remittance inflows. Foreign direct investment inflows amount to 3.6% of GDP (2024), signaling a moderate level of international investor engagement, particularly in zones like manufacturing, logistics, and services, though room remains for deeper diversification and value-added investment. High-technology exports are modest at about $454 million (2023), suggesting limited scale of sophisticated tech production but indicating niche capabilities that could be expanded with policy support and private sector collaboration. The rule-of-law and governance indicators show a mixed picture: regulatory quality is 0.171, political stability 0.239, and government effectiveness 0.128, yet the rule of law sits at -0.129 and control of corruption at -0.449, underscoring constraints in formal institutions that can affect investment climates and risk perceptions. Poverty remains a material challenge, with 23.0% of the population living below national poverty lines (2023), underscoring the need for inclusive growth strategies, social protection, and productivity-enhancing reforms. The country’s economic resilience will hinge on improving competitiveness, expanding productive sectors, and strengthening macroeconomic buffers against external shocks. The poverty, growth, and investment data collectively imply a promising but cautious outlook: growth opportunities exist in services, tourism, and light manufacturing, yet achieving higher value-added activity and broad-based prosperity will depend on improving governance, expanding human capital, and modernizing infrastructure to reduce trade costs and raise productivity.

Trade and Investment

Trade openness is evident in the Dominican Republic’s external accounts and trade composition. Exports of goods and services represent 22.8% of GDP (2024), while imports constitute 29.0% of GDP (2024), reflecting a trade-intensive economy that relies on global markets for consumer goods, intermediate inputs, and energy supplies. The modest current account deficit of -3.35% of GDP (2024) suggests a manageable external position, supported by a combination of domestic demand and foreign capital inflows. Foreign direct investment net inflows amount to 3.6% of GDP (2024), indicating sustained international interest in the country’s production, logistics, and services sectors, albeit with potential prerequisites like regulatory clarity and efficient governance to attract deeper investments. The Logistics Performance Index, focused on quality of trade and transport-related infrastructure, stands at 2.7 (2022) on a 1-to-5 scale (with 5 being best), signaling moderate efficiency of supply chain infrastructure, port operations, and border administration. This level offers a foundation for growth but also points to opportunities for improvements that could reduce trade costs, shorten lead times, and increase competitiveness. The country also benefits from a relatively high share of high-technology exports at 454,061,980 USD (2023), indicating the existence of knowledge-intensive activities and export potential in certain advanced sectors, even as patent activity among residents remains modest (7.0 applications in 2021). This signals room to boost domestic innovation ecosystems through better research funding, linkages between universities and industry, and stronger intellectual property frameworks. Overall, the trade and investment landscape shows a country beginning from a position of openness and external connectivity, with ongoing opportunities for modernization and diversification. Strengthening regulatory quality, the rule of law, and anti-corruption efforts could further unlock private investment and foster more resilient value chains. Expanding capacity in logistics, improving energy security, and promoting technology-driven export sectors could help the Dominican Republic move toward higher productivity and more inclusive growth as global demand evolves.

Governance and Institutions

Governance indicators present a mixed but practically informative portrait. Political stability and absence of violence/terrorism are measured at 0.239 (2023), indicating a reasonably stable political environment, though not universally strong by global standards. Regulatory quality registers 0.171 (2023), suggesting some capacity to implement rules that facilitate business, investment, and service delivery, but with scope for strengthening consistency and transparency. The rule of law stands at -0.129 (2023), hinting at challenges in legal predictability, contract enforcement, and judiciary efficiency that can affect business risk assessments and long-horizon investments. Control of corruption sits at -0.449 (2023), signaling perceived or real concerns about corruption that could undermine trust and investment if not addressed. Government effectiveness is 0.128 (2023), indicating a moderate functional capacity of public institutions to design and implement policy; however, structural reform may be needed to translate this into robust public service delivery and predictable governance. The combination of these indicators underscores a governance landscape with notable strengths in some areas but persistent constraints in others. The evident weaknesses in rule of law and corruption control can hamper investment climates and public sector efficiency, while the moderate levels of stability and governance effectiveness offer a platform for reform and reform-driven growth. Translating governance into tangible development requires targeted reforms: simplifying regulatory processes where needed, sharpening anti-corruption measures, and reinforcing judicial independence and enforcement. Enhanced governance can improve the business environment, reduce compliance costs, and build confidence among domestic and foreign investors. The comparatively favorable unemployment figure and social protection policies can complement governance improvements by promoting inclusive growth and social cohesion, even as the country navigates structural reforms to strengthen institutions and public accountability.

Infrastructure and Technology

Digital connectivity is a bright spot in infrastructure and technology, with 84.6% of the population using the Internet in 2023, illustrating a solid base for digital services, e-commerce, and online learning. This level of connectivity supports financial inclusion, government service delivery, and the growth of tech-enabled businesses, especially in urban and peri-urban centers. On the logistics side, the Logistics Performance Index of 2.7 (2022) points to moderate efficiency of trade-related infrastructure and transport networks; this suggests that while logistics systems are functional, there is substantial room to improve port operations, customs processing, and transport reliability to reduce the cost and time of trade. Innovation activity appears limited by a relatively small patent footprint, with residents filing 7 patent applications in 2021, implying a nascent domestic innovation culture or underdeveloped IP ecosystems. Nonetheless, high-technology exports reach about $0.45 billion (2023), indicating existing capabilities in selected sectors that can be scaled with targeted policy support, research collaboration, and investment in sophisticated manufacturing and design. The country’s health and education infrastructure benefits from a physician density of 2.23 per 1,000 people (2022), a signal of a reasonable healthcare workforce in some regions but with potential shortages in rural areas that could affect service equity. Renewable energy consumption accounts for 14.8% of total final energy consumption (2021), reflecting a growing but still modest contribution from cleaner sources. Combined with a medium level of water stress (freshwater withdrawals at 39.6% of available resources in 2021), infrastructure planning should emphasize energy diversification, grid resilience, water management, and climate-adaptive infrastructure to support sustainable growth. Taken together, the infrastructure and technology data depict a country with strong digital access and emerging high-tech exports, balanced by opportunities to upgrade logistics, expand innovation ecosystems, and accelerate renewable energy deployment to improve resilience and competitiveness.

Environment and Sustainability

Environmental indicators show both potential and challenges for sustainable development. Renewable energy consumption stands at 14.8% of total final energy consumption (2021), indicating a meaningful but still limited share of renewables in the energy mix. This creates opportunities for policy interventions and investments in solar, wind, and other clean energy sources to reduce import dependence, lower emissions, and stabilize energy costs for businesses and households. Total greenhouse gas emissions per capita are 4.27 t CO2e (2023), a moderate level that reflects energy use patterns, transport choices, and industrial activity typical of larger developing economies in the region. There is clear scope to push decarbonization through efficiency measures and cleaner energy choices. Water resources show moderate stress, with freshwater withdrawal representing 39.6% of available resources (2021) and a level of water stress at 45 (global percentile rank). This signals a need for integrated water management, efficiency improvements, and resilience planning to cope with droughts, tourism demand, and agricultural uses. The environmental footprint also intersects with social outcomes: undernourishment remains relatively low at 4.6% (2022), yet climate and environmental pressures can threaten food security if supply chains are disrupted or agricultural productivity is impacted. Total greenhouse gas emissions and water stress considerations underscore the importance of balancing development with conservation, investing in sustainable infrastructure, and strengthening institutions to monitor environmental performance. In sum, the Dominican Republic has a solid path to enhanced environmental sustainability through expanding renewables, improving water management, and embedding climate resilience into infrastructure and urban planning while pursuing economic diversification that minimizes ecological trade-offs.