After analyzing the recent evolution of the external sector, the BCRD's outlook anticipates that significant flows of remittances, exports, tourism revenues and foreign direct investment will continue during 2023.
SANTO DOMINGO- The Central Bank of the Dominican Republic (BCRD) reported this Thursday that remittances received in the first quarter of 2023 reached a figure of around 2,500.0 million dollars, for a growth of 3.6% compared to the same period of the previous year.
The monetary authority indicated that, in particular, March registered a remittance value of about 915.1 million dollars, with an increase of 3.0%, compared to March 2022.
These flows mark the third consecutive month of increase so far this year, extending the increase observed since the beginning of the last quarter of 2022. This is explained by the multiplier effect on consumption, investment, and financing of the most vulnerable sectors that have these resources supplied by the diaspora, the Central Bank of the Dominican Republic (BCRD) indicated.
According to a statement from the Central Bank of the Dominican Republic (BCRD), the economic performance of the United States was one of the main factors that influenced the behavior of remittances, since 85.4% of the formal flows in March, some 668.2 million dollars, came from that country.
During 2022, the North American economy grew by 2.1%, according to its Bureau of Economic Analysis, and unemployment in March 2023 stood at 3.5%, close to the lowest level in more than 50 years.
Additionally, the Institute for Supply Management's (ISM) non-manufacturing Purchasing Managers' Index (PMI) registered a value of 51.2 in March, indicating the expansion of the services sector, where most of the Dominican diaspora is employed.
The Central Bank of the Dominican Republic (BCRD) also highlighted the receipt of remittances through formal channels from other countries in March. This is the case from Spain, with remittances totaling $44.6 million, representing 5.5% of the total, making it the second largest recipient country in terms of the number of Dominicans residing abroad.
Countries like Italy and Haiti accounted for 1.0% and 0.7% of the remittances received, respectively. The remainder of the remittances are divided among countries such as Switzerland, Canada, and Panama, among others.
Provinces
Regarding the distribution of remittances received by provinces during March, the BCRD indicates that the National District obtained the largest proportion, 35.2%, followed by the provinces of Santiago and Santo Domingo, with 14.3% and 8.7 % , respectively .
After analyzing the recent evolution of the external sector, the BCRD's outlook anticipates that significant flows of remittances, exports, tourism revenues and foreign direct investment will continue during 2023.
These foreign exchange inflows will continue to affect the relative stability of the exchange rate currently observed, such that the national currency appreciated by 2.2% at the end of March compared to December 2022.
The institution highlights that the increased flow of external income also allowed for the accumulation of international reserves by the end of March, exceeding US$16 billion. This level represented 13.1% of GDP and approximately six months of imports, above the thresholds recommended by international organizations.
