SANTO DOMINGO.-The Central Bank of the Dominican Republic (BCRD) reported yesterday that during 2024, remittances received in the country reached US$10,756.0 million, representing an increase of US$598.8 million (5.9%) compared to the previous year, reflecting a result aligned with the institution's projections.
According to a statement from the agency, US$1,003.5 million was received for this purpose in December, which represents a year-on-year increase of 6.2%.
“It is essential to highlight the importance of these resources sent by the Dominican diaspora abroad, as they generate a multiplier effect on consumption, investment, and financing for the country’s most vulnerable sectors,” the Central Bank points out.
It explains that the economic performance of the United States was a determining factor in the behavior of remittances, since 80.3% of the formal flows in December, equivalent to US$710.5 million, came from that country.
"On the one hand, throughout 2024 the overall unemployment rate in the United States remained around 4.0%, close to the full employment level for the U.S. Additionally, the non-manufacturing Purchasing Managers' Index (PMI) from the Institute for Supply Management (ISM) registered a value of 54.1 in December, two points above the 52.1 observed in November, indicating the expansion of the services sector, where a large part of the Dominican diaspora is employed."
The Central Bank of the Dominican Republic (BCRD) also highlights the receipt of remittances through formal channels from other countries in December. In this regard, Spain contributed US$55.9 million, representing 6.3% of the total, making it the country with the second-largest Dominican diaspora population abroad. Italy and Haiti contributed 1.7% and 1.0% of the remittances received, respectively. Other countries, such as Switzerland, Canada, and Panama, were also identified as sources of remittances.
After analyzing recent trends in the external sector, the Central Bank of the Dominican Republic (BCRD) estimates that, in addition to the value of remittances by the end of 2024, tourism sector revenues are expected to exceed US$10.6 billion, foreign direct investment (FDI) flows are projected to surpass US$4.5 billion, covering the current account deficit, exports from free trade zones are expected to reach approximately US$8.5 billion, and national exports are projected to exceed US$5.4 billion. These foreign exchange inflows are expected to reach approximately US$43.6 billion, which would contribute to maintaining the current relative exchange rate stability. As a result, by the end of 2024, the national currency is projected to have depreciated by only 5.0% compared to the end of 2023.
The institution highlights that the higher external income has also allowed for maintaining an adequate level of international reserves, which at the end of December 2024 reached US$13,387.6 million, covering about 5.1 months of imports, and equivalent to 10.8% of the gross domestic product (GDP), above the thresholds recommended by the International Monetary Fund (IMF).
Regarding the outlook for remittance inflows in 2025, the issuing entity estimates that the diaspora will continue to contribute to the Dominican economy, with approximately US$11 billion expected by the end of the year.
The Central Bank reaffirms its commitment to monitoring the current economic environment in order to continue taking the necessary measures to counteract the impact of the challenging international landscape on the Dominican economy, thereby ensuring price and exchange market stability.
