Dominican Republic Ranks 5th Most Prosperous in Latin America & Caribbean

When Luis Abinader, President of Dominican Republic learned that his country had slipped into the top‑five of the Legatum Institute’s Prosperity Index for Latin America and the Caribbean, he smiled and said, “Our people deserve to see the fruits of hard work reflected in real numbers.” The report, unveiled during the Prosperity Index 2025 Report ReleaseSanto Domingo, placed the Dominican Republic fifth behind Chile, Uruguay, Panama and Argentina, with a score of 37.4 out of 100.

How the Prosperity Index Measures Prosperity

The index blends 20‑plus indicators drawn from the World Bank and the United Nations Development Programme. It looks at pure economic growth, but also at education, health, personal freedom and, crucially, poverty reduction. That’s why a country can score high on GDP yet lag in the ranking – the index rewards progress that translates into everyday well‑being.

Dominican Republic’s Economic Performance in Numbers

According to the International Monetary Fund (International Monetary Fund), the island nation posted a PPP‑adjusted GDP of $293.365 billion in 2024, growing at a real‑rate of 5.4%. Per‑capita GDP hit $27,120, while inflation steadied at 4.2% and unemployment lingered around 6.0%.

• Overall Prosperity Index score: 37.4/100
• Global rank: 68th (up six places since 2011)
• Poverty rate (2021): 23.9% of the population below the line
• Tourism’s share of GDP (2024): just over 15%
• Real GDP forecast for 2025: 4.0% growth

Fiscal data from 2021 still show a deficit – revenues of $14.10 billion against expenditures of $16.60 billion – but the trajectory is unmistakably upward.

The Role of Tourism and Remittances

Tourism has become the engine that powers the catch‑up. In the first four months of 2025, 4.3 million visitors set foot on the island, and April alone saw more than one million arrivals – the best month on record. That influx contributed roughly 40% of the nation’s recent growth, a boost that dwarf‑s the pre‑pandemic figures.

Remittances, largely from Dominican communities in the United States and Europe, added another steady stream of foreign exchange. Together, tourism and remittances supplied enough hard cash to offset external shocks, according to a senior IMF analyst who told local reporters, “The Dominican economy’s resilience stems from these two pillars, which are less vulnerable to commodity price swings.”

Regional Comparison and Rankings

When you line up the 23 nations studied, the Dominican Republic jumps over Brazil, Colombia, El Salvador and Costa Rica. Those countries have larger populations and bigger economies on paper, but the island’s focused growth strategy has paid off. Only Chile, Uruguay, Panama and Argentina sit above it – all of which enjoy higher per‑capita incomes and more diversified industrial bases.

In the Caribbean, the Dominican Republic now leads by total GDP (estimated $127 billion in 2024), even though its per‑capita figure ($7,052) trails micro‑states like Bermuda ($85,748) and the Cayman Islands ($64,103). The contrast highlights the difference between size and wealth distribution, a nuance the Prosperity Index captures.

Outlook: Goals for 2030 and Beyond

The government has set a clear target: become a high‑income nation by 2030. Projections suggest 79% cumulative growth across the decade, a pace that would lift per‑capita income well above the current median for the region. Investment in infrastructure – think upgraded airports, renewable‑energy parks and digital corridors – is slated to keep the momentum alive.

Transparency is improving, too. The country moved up to 104 on Transparency International’s Corruption Perceptions Index in 2024, a jump from 137 in 2020. Meanwhile, its position on the Global Innovation Index rose to 97 out of 139 economies, signaling a budding tech ecosystem.

Critics caution that rapid growth can mask inequality. A civil‑society think‑tank warned that while poverty rates have fallen, the gap between urban and rural earnings remains wide. The administration says new social‑spending reforms aim to translate GDP gains into health, education and housing improvements.

Key Takeaways

1. The Dominican Republic is now the fifth‑most prosperous nation in Latin America and the Caribbean according to the 2025 Prosperity Index.
2. Strong tourism performance and steady remittance flows underpin recent growth.
3. IMF forecasts 4.0% real GDP growth for 2025, keeping the country on track for a high‑income status by 2030.
4. Improvements in transparency and innovation are reshaping the business climate.
5. Challenges remain in translating macro‑level gains into broad‑based social welfare.