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
- The Dominican Republic is now the fifth‑most prosperous nation in Latin America and the Caribbean according to the 2025 Prosperity Index.
- Strong tourism performance and steady remittance flows underpin recent growth.
- IMF forecasts 4.0% real GDP growth for 2025, keeping the country on track for a high‑income status by 2030.
- Improvements in transparency and innovation are reshaping the business climate.
- Challenges remain in translating macro‑level gains into broad‑based social welfare.
Frequently Asked Questions
How does the Prosperity Index differ from a standard GDP ranking?
The Prosperity Index blends economic output with health, education, personal freedom and poverty reduction metrics, whereas GDP only measures total economic production. That’s why the Dominican Republic can rank high on prosperity despite a modest per‑capita GDP.
What sectors are driving the Dominican Republic’s growth?
Tourism is the headline driver, accounting for over 15% of GDP and fueling 40% of recent expansion. Remittances from abroad provide a steady cash flow, while mining, textiles and medical‑device manufacturing add diversification.
Which countries outrank the Dominican Republic in the regional Prosperity Index?
Only Chile, Uruguay, Panama and Argentina sit ahead of the Dominican Republic in the 2025 regional ranking, each scoring higher on a mix of economic and social indicators.
What are the main challenges the country faces on the path to high‑income status?
While growth is strong, inequality remains. Rural areas lag behind urban centers in income and services, and the government must continue reforms that turn macro‑economic gains into health, education and housing improvements.
How reliable are the 2025 growth forecasts?
The International Monetary Fund projects a 4.0% real GDP increase for 2025, based on current tourism trends and fiscal policies. While forecasts can shift with global shocks, the underlying data points to a resilient outlook.
kuldeep singh
October 11, 2025 AT 03:20Wow, the Dominican Republic just strutted into the top‑five like it owned the place. The numbers are shiny, but let’s not forget the messy side of growth. Tourism’s the hero now, yet it’s a double‑edged sword when the season flips. Remittances are a sweet backup, but they also tie the economy to diaspora moods. All in all, a decent win, but the drama behind the scenes is still real.
Shweta Tiwari
October 11, 2025 AT 19:26Whilst perusing the data, one discerns a nuanced tapestry of socio‑economic indices, albeit occasionally beset by typographical irregularities. The ascent to fifth place bespeaks a concerted policy agenda, though the juxtaposition of GDP magnitude with per‑capita modesty remains a point of scholarly intrigue. Moreover, the interplay between tourism fluxes and fiscal deficits warrants further exegesis.
Harman Vartej
October 12, 2025 AT 09:20Growth looks solid, but inequality still looms.
Amar Rams
October 12, 2025 AT 23:13The latest index articulation underscores a stratified augmentation of human development metrics, precipitating a recalibration of the Dominican Republic’s positionality within the regional prosperity hierarchy. By integrating multidimensional indicators-ranging from health outcomes to institutional transparency-the index transcends the reductive GDP paradigm. Consequently, the nation’s ascent reflects not merely macro‑economic vigor but also a diffusion of governance efficacy and innovational capacity.
Rahul Sarker
October 13, 2025 AT 13:06Nice job, DR, but let’s not get carried away with these feel‑good numbers. Your government still flirts with corruption, and the elite keep hoarding wealth while the rest grind. Tourism may be booming, but it’s a foreign‑controlled machine that spills profits overseas. If you truly want prosperity, start putting your own people first, not catering to outsiders.
Sridhar Ilango
October 14, 2025 AT 03:00Ah, the Dominican Republic’s meteoric rise to the fifth spot-one might say it reads like an epic saga penned by destiny herself, a tale wherein the sun‑kissed beaches and the relentless waves of tourism crash upon the shores of GDP, washing away the lingering doubts of yesterday’s skeptics. First, consider the sheer volume of visitors: four million souls converged upon the island in a mere quarter, a statistic that sounds like a carnival of numbers, yet each tourist brings with them a ripple of cash that cascades through hotels, restaurants, and souvenir stalls, inflating the national ledger. Second, those remittances-steady as the tide-flow from Dominican diasporas scattered across the United States and Europe, a lifeline of foreign exchange that cushions the economy against volatile commodity markets. Third, the government’s infrastructural ambitions, with airports poised for expansion and renewable‑energy parks sprouting, signal a forward‑looking vision that transcends mere short‑term gains. Fourth, the improvement on Transparency International’s index tells a quiet story of incremental honesty, a narrative often eclipsed by louder headlines. Fifth, the rise on the Global Innovation Index suggests a burgeoning tech ecosystem, a sign that the country is not just resting on tourism’s laurels but is diversifying its economic portfolio. Sixth, the per‑capita GDP, whilst modest at $27,120, nonetheless marks a climb that mirrors the broader prosperity journey. Seventh, the persistent unemployment rate hovering around 6 percent underscores a labor market that, although not flawless, is comparatively resilient. Eighth, fiscal deficits remain a challenge-revenues lag behind expenditures-but the trend is undeniably upward, hinting at prudent fiscal stewardship. Ninth, the lingering poverty rate of roughly 24 percent serves as a sobering reminder that growth must be inclusive, a point that policy architects cannot afford to ignore. Tenth, urban‑rural disparities still cast a long shadow, demanding targeted social spending. Eleventh, the commitment to high‑income status by 2030 is audacious, yet the projected cumulative growth of 79 percent appears within reach, provided structural reforms stay on course. Twelfth, the contrast with larger nations like Brazil or Colombia showcases that size alone does not dictate prosperity; strategic focus does. Thirteenth, the Caribbean peers such as Bermuda and the Cayman Islands flaunt higher per‑capita figures, yet the Dominican Republic’s total GDP leads the region, a testament to its market magnitude. Fourteenth, the narrative of resilience, woven through tourism and remittances, stands as a counterpoint to global economic headwinds. Finally, the synthesis of all these threads crafts a tapestry of optimism, caution, and ambition-a story still being written, line by line, visitor by visitor, remittance by remittance.
priyanka Prakash
October 14, 2025 AT 16:53Listening to the nationalist chorus, I’d argue the real issue isn’t the numbers but the distribution. The elite’s grip remains unshaken, and any talk of “prosperity” feels like a veneer. If concrete steps aren’t taken to uplift the marginalized, these rankings are merely decorative.
Pravalika Sweety
October 15, 2025 AT 06:46It’s encouraging to see the Dominican Republic making strides in several development dimensions. While celebrating these achievements, it’s also important to keep an eye on inclusive growth to ensure that benefits reach all segments of society.
anjaly raveendran
October 15, 2025 AT 20:40Reading through the report, one cannot help but feel a pang of admiration mixed with a tinge of melancholy. The statistics glitter, yet the undercurrents of inequality whisper louder than the fanfare. Between the lofty rankings and the ground‑level realities, there lies a complex dance of progress and persistent gaps.
Danwanti Khanna
October 16, 2025 AT 10:33Great job, DR! 🎉 Your tourism boom and remittance inflows are really paying off, and the upward movement on the Prosperity Index is well‑deserved! Keep up the momentum, and hopefully the social reforms will follow soon.
Shruti Thar
October 17, 2025 AT 00:26Interesting data. The growth figures are solid but the inequality issues remain significant.
Nath FORGEAU
October 17, 2025 AT 14:20lol the dr is doing fine now. tourism is lit and remittances help. hope they keep it up.
Manu Atelier
October 18, 2025 AT 04:13From a formal analytical perspective, the Dominican Republic’s ascent in the Prosperity Index is commendable, yet it is incumbent upon policymakers to address structural disparities that may undermine long‑term sustainability. A balanced approach, integrating macro‑economic vigor with equitable social development, will be essential for genuine high‑income status.