The Dominican Republic is unquestionably the current economic star of Latin America in terms of growth. It has a thriving tourism industry, which it is now attempting to diversify, and a revitalised mining industry. The economy is supported by a healthy banking sector and robust levels of foreign direct investment. That means it can afford to implement a social policy aimed at dramatically raising levels of education and health coverage.
Last year, the Dominican Republic recorded a 7% increase in gross domestic product (GDP), according to projections by the UN Economic Commission for Latin America and the Caribbean. That was the highest economic growth in Latin America by some margin, ahead of next-best Panama at 5.9% and Bolivia at 4.5%. Inflation remained subdued, at a little over 2%, while foreign reserves rose by 8% to $5.27bn. Public sector balances remained relatively healthy, with debt at a respectable 45% of GDP.
