The president of the French automaker highlighted the importance of expanding the Incentive Regime for Large Investments in Argentina (RIGI). Renault has chosen San Juan province in Argentina as the setting for launching the new Kardian, an SUV representing a significant brand transformation. This model introduces a new platform, engine, technology, and design, beginnin a series of global launches until 2027.

Renault’s Commitment to Electromobility in Argentina

Pablo Sibilla, president of Renault, took the opportunity to discuss the brand’s expectations and the impact of the Incentive Regime for Large Investments in Argentina (RIGI) on the Argentine automotive industry. Sibilla emphasized that the new Kardian platform allows “any vehicle built on that platform to be hybrid.” This technological advancement paves the way for increased production of electric and hybrid vehicles in Argentina. This is an essential step for the country in its goal to remain competitive in an increasingly electromobility-focused global market.

https://www.youtube.com/watch?v=ux2UAWOJgvEg

Expanding RIGI for the Future of Electromobility

In this context, Sibilla underscored the urgent need to expand the Incentive Regime for Large Investments in Argentina to promote electromobility in Argentina. Currently, the regime needs to fully address the sector’s needs, limiting the potential growth and development of the local automotive industry.

Sibilla revealed that Renault is in talks with Javier Milei’s government to integrate electric and hybrid vehicles into the Incentive Regime for Large Investments in Argentina, aiming to incentivize production and investment in clean technology. “Brazil launched the Mover plan, which attracted significant investments in electrification. We believe Argentina must implement similar measures to avoid falling behind in local vehicle manufacturing in 5 or 6 years,” Sibilla explained.

The Impact of “Impuesto País” and Future Tax Reforms

In addition to the update of the RIGI, the Renault president also discussed the impact of the “Impuesto País” on vehicle prices. The possibility of a 10% reduction in the tax, announced for September, might not be fully reflected in consumer prices since many dealership vehicles have already paid this tax. “If the tax decreases, the percentage will not be fully transferred to final prices,” Sibilla clarified. Despite this, he highlighted that any reduction in the tax would positively impact the sector’s competitiveness, although the effects might not be immediate.

Sibilla also emphasized that a general reduction in taxes would improve the competitiveness of the Argentine automotive industry, not only for domestic sales but also for exports. “The elimination of the 10% Impuesto País is a major change. It will affect car sales in Argentina and our export capacity,” Sibilla stated. He added that Javier Milei’s government aims to gradually reduce taxes as the economy and revenue allow, which would benefit the automotive sector.

Renault’s Future Plans and the Role of RIGI

Finally, Sibilla assured that the Kardian marks the beginning of a new era for Renault, with an investment plan extending until 2027. He also hinted that new models and the Niagara pickup truck will be announced before the end of the year. With this transition, the French automaker Renault hopes to lead the push toward greater electrification in the Argentine market, solidifying its position in the industry and responding to the growing demand for electric vehicles.

The Incentive Regime for Large Investments in Argentina: A Key Economic Driver

The Incentive Regime for Large Investments in Argentina, or RIGI, is a central initiative introduced by Javier Milei’s government in Argentina to attract substantial private investments to stimulate economic growth. This program is designed to encourage large-scale investments across various sectors by offering significant incentives to investors. Critical features of the Incentive Regime for Large Investments in Argentina include tax breaks, streamlined regulatory processes, and other financial incentives that make it more attractive for companies to commit significant capital to projects in Argentina. By setting a high minimum investment threshold, the regime ensures that only large projects with the potential to impact the economy significantly are eligible. The overarching goal of RIGI is to modernize Argentina’s infrastructure, create jobs, and drive long-term economic development, positioning the country as a more competitive destination for global investment.

The Broader Impact of RIGI on Argentina’s Automotive Industry

The resurgence of Renault’s €300 million project in Argentina underlines the pivotal role of the Incentive Regime for Large Investments in Argentina in revitalizing the nation’s automotive industry. As Renault embarks on a new era of electrification and innovation with the launch of the Kardian SUV, the company’s collaboration with Javier Milei’s government to expand RIGI demonstrates a shared vision for a competitive and sustainable future. By embracing clean technology and reducing tax burdens, Argentina is poised to attract more significant investments, enhance its industrial capabilities, and strengthen its position in the global automotive market. The success of RIGI in driving such substantial projects serves as a testament to the potential of well-crafted economic policies to catalyze growth and transform key industries.

Governor’s Promised Goals and Achievements

When he was a candidate, Diego Sinhue, the governor of Guanajuato, Mexico, promised to attract more than $5 billion in foreign investment in Guanajuato. This projection of economic growth represented a significant gain for different sectors. Guanajuato will be closing the six-year term with double the foreign investment in Guanajuato that was initially set, as announced by Diego Sinhue Rodríguez Vallejo, governor of Guanajuato. He mentioned that the goal is very close to being achieved, with the addition of other projects. He stated that his six-year term will close with over $10 billion in foreign investment in Guanajuato with investment projects. He reaffirmed his commitment to finishing his administration on a high note. He recently revealed that an event would be held to announce this news, emphasizing that it was not an easy task, but through effort and teamwork, it was achieved.

Achievement of the $10 Billion Milestone

“We are already on the verge of surpassing $10 billion. This is an important milestone because we committed to bringing in $5 billion during the campaign, which is already over $9.5 billion. We are about to double the goal; we are a month away, and I hope we can make the announcement soon. We will hold an event to announce the $10 billion in foreign investment in Guanajuato as soon as it is signed,” he said.

Economic Impact and Sector Growth

Rodríguez Vallejo explained that when he was a candidate, he promised to attract over $5 billion in foreign investment in Guanajuato, so this growth of more than $4 billion means a lot to different sectors in the state. These investments, which will be announced soon, will significantly contribute to this, doubling the goal. He assured that pending projects would fall to the elected governor, Libia Dennise García Muñoz Ledo, to follow up on.

Sector-Specific Investments

Guanajuato has attracted substantial foreign direct investment in several key economic sectors in the past six years. The automotive industry has received the largest share, accounting for 35% of the total investment, reflecting the state’s growing importance as a major player in this industry. Significant investments have flowed into the manufacturing and industrial sectors following the automotive sector, bolstering the state’s production capabilities and infrastructure. Additionally, the technology sector has seen a notable increase in foreign capital, driven by Guanajuato’s focus on innovation and digital advancement. The energy sector has also attracted considerable investment, highlighting the state’s commitment to sustainable and renewable energy projects. These diverse investments have strengthened Guanajuato’s economic foundation and set the stage for future growth and development across multiple industries.

Resilience and Future Prospects

“Many more projects are coming, and many more that we will leave to the next governor,” he stated. The state leader explained that despite having a challenging six-year term due to the pandemic, Guanajuato kept up, implementing actions to keep the economy flowing.

Commitment to Economic Growth

“Despite being a complicated term, despite the difficulties, entrepreneurs worldwide continue to trust Guanajuato because there is seriousness, public policies, citizen participation, recreation, and transparency. This makes manufacturers want to keep investing in Guanajuato,” the state governor asserted.

New Projects and Sector Highlights

He pointed out that this investment attraction is equivalent to 160 projects exclusively brought to the state by the Ministry of Sustainable Economic Development. For these projects, agreements were signed with these companies, and a commitment was made to generate jobs accompanied by investment. It is worth noting that, according to the Ministry of Sustainable Economic Development, 35 percent of these projects are in the automotive industry, highlighting the growth that Guanajuato has experienced in this sector over the years.

A Legacy of Economic Success

As Guanajuato approaches the end of Diego Sinhue Rodríguez Vallejo‘s six-year term, the state is poised to celebrate an unprecedented milestone in its economic development. The projected $10 billion in foreign investment in Guanajuato, doubling the initial campaign promise of $5 billion, underscores the remarkable progress achieved under Rodríguez Vallejo’s leadership. This substantial influx of capital reflects the state’s burgeoning significance in global economic arenas and highlights its strategic positioning across various vital sectors. The automotive industry, which has garnered the largest share of this investment, exemplifies Guanajuato’s growing stature as a critical player in manufacturing and innovation. Expanding the technology and energy sectors also signifies a well-rounded and forward-looking economic strategy. The influx of 160 new projects and the continued trust of international entrepreneurs attest to Guanajuato’s resilient and dynamic business environment. Despite the challenges posed by the pandemic, the state has managed to attract substantial foreign investment in Guanajuato through effective public policies, transparency, and an unwavering commitment to economic growth. As the term concludes and the baton is handed over to the incoming governor, Libia Dennise García Muñoz Ledo, Guanajuato stands as a testament to successful economic stewardship, ready to build on this solid foundation for future prosperity. The legacy of this record-breaking investment will undoubtedly pave the way for continued development and reinforce Guanajuato’s position as a thriving economic hub in Mexico.

Rapid Growth in Trade Relations

Trade between South Korea and Latin America and the Caribbean has grown by 400% since 2000. The IDB Group points out that Asian countries and the region have the opportunity to deepen their economic and trade relations by increasing the resilience of value chains. Trade between South Korea and Latin America shows excellent dynamism, with record goods trade, high levels of Korean investment in the region, and a promising potential for further growth in the future, according to a report from the Inter-American Development Bank (IDB).

Critical Investments in Central America

South Korea’s significant investments in Central America, particularly in sectors such as infrastructure, manufacturing, and energy, have played a crucial role in bolstering the economies of these nations. In Costa Rica, Korean companies have been instrumental in developing renewable energy projects, including solar and wind power plants, contributing to the country’s goal of achieving carbon neutrality. In El Salvador, South Korean firms have invested in constructing major infrastructure projects, such as highways and ports, which are vital for enhancing regional trade connectivity. However, in Guatemala, South Korean investments have strategically focused on the textile and apparel industry, leveraging the country’s strategic location and favorable trade agreements to produce goods for export to the United States and other markets. These investments strengthen trade ties between the region and South Korea and bring about tangible economic benefits, fostering greater economic integration and cooperation.

Remarkable Increase in Goods Trade

According to the report, the scale of goods trade has seen a remarkable increase, from US$10 billion in 2000 to a significant US$56.8 billion in 2023, representing a more than 400% increase. This substantial growth is a testament to the robust trade relations between South Korea and Latin America, and the Caribbean. It also serves as a clear sign of the potential for further economic cooperation. Foreign investment from Korea in the region also exceeded US$3 billion in 2023, further underlining the strength of these relations and the promising future for economic collaboration.

Bilateral Trade in Services and Agri-Food Exports

According to the latest available data, other key findings from the publication include that bilateral service trade exceeded US$11 billion in 2021. Agri-food exports from the region to South Korea, led by Brazil, have grown at an annual growth rate of 20% over the past four years. Brazil’s agri-food exports to South Korea have been diverse and robust, reflecting the country’s solid agricultural capabilities. Essential export items include soybeans, a significant protein source widely used in South Korea for animal feed and food products. Brazil also exports significant poultry and beef to South Korea, taking advantage of its position as one of the world’s largest meat producers. These exports cater to the high demand for quality protein in the South Korean market. Additionally, Brazil has been exporting coffee, a staple in South Korean cafes and households, and sugar, used in various food and beverage industries. The strong performance of these agri-food exports highlights Brazil’s role as a crucial supplier of essential food commodities to South Korea, contributing to the growing trade relationship between the two nations.

The Role of the Korea-LAC Forum

Trade between South Korea and Brazil, home to 50,000 Koreans, reached US$10 billion in 2023. The global economy’s challenges require a cooperation agenda between Latin America and Korea that prioritizes policies and regulations. “The Korea-LAC Forum has been an indispensable vehicle over the years for integrating Korea with Latin America and the Caribbean and expanding bilateral trade and investment,” said Ilan Goldfajn, President of the Inter-American Development Bank. “To facilitate and deepen these ties, today we are pleased to present to our Korean partners BID for the Americas, a program that will serve as a bridge for Korean companies to access business opportunities in the region. Based on a cutting-edge platform, our program seeks to connect companies with procurement, trade, investment, and co-financing opportunities,” added Goldfajn.

Focus on Sustainable Development and Innovation

Attendees had the opportunity to delve into various areas of development and collaboration, including sustainable agriculture to address food insecurity; public-private partnerships to promote foreign investment; agile and intelligent supply chains to increase efficiency and competitiveness in global markets; and technology, blockchain, and the digital economy to foster innovation and economic development.

A Promising Future for Economic Partnership

The remarkable growth in trade between South Korea and Latin America, and the Caribbean over the past two decades underscores the deepening economic ties and mutual benefits realized by both regions. As the Inter-American Development Bank highlighted, this relationship has flourished through significant investments in critical sectors such as infrastructure, energy, and manufacturing, driving economic development and fostering closer collaboration. With bilateral goods trade reaching unprecedented levels and investments exceeding $3 billion in 2023, the foundation for future growth is solid. The diverse agri-food exports from Brazil and the robust infrastructure projects in Central America are prime examples of the positive impact of this trade. The Korea-LAC Forum and initiatives like BID for the Americas will strengthen these ties by providing new business opportunities to engage and thrive in a rapidly evolving global economy. By prioritizing resilience in value chains, promoting sustainable development, and embracing digital transformation, both regions can overcome global challenges and capitalize on the immense potential for continued economic partnership. The cooperation between South Korea, Latin America, and the Caribbean enhances trade relations and fosters a more interconnected and prosperous future for all involved.

The rise of Brazilian interest in investments in Panama marks a new era of economic opportunities. In recent months, Panama has witnessed a notable increase in investments from Brazilian companies looking to establish themselves within its borders. This phenomenon is no coincidence but rather a response to a series of strategic factors that have placed Panama in a privileged position within the regional economic context for attracting investments. The recent announcement of Panama’s interest in becoming an Associate State of Mercosur has been one of the key triggers that have attracted the attention of Brazilian investors.

Strengthening Bilateral Relations

During a meeting between the Brazilian Ambassador to Panama, Carlos Henrique Moojen de Abreu e Silva, and Panama’s Minister of Commerce and Industries (MICI), Julio Moltó, the opportunities that this new relationship could bring for both countries were discussed. Ambassador Moojen de Abreu e Silva emphasized that Brazilian companies’ interest in investments in Panama has grown considerably, especially in sectors such as biofuels, technology, and software.

Panama’s Strategic Role as a Logistics Hub

Panama, known for its strength in the transportation sector and its role as a top-tier logistics hub, offers an ideal platform for Brazilian companies to expand their investments in Panama and beyond into Central America and the Caribbean. With the prospect of an association agreement with Mercosur, Brazilian companies see Panama not just as an investment destination but as a gateway to other markets, a potential that promises a bright and optimistic future for investments in Panama.

Opportunities from Panama’s Integration into Mercosur

Minister Julio Moltó highlighted that Panama’s integration as an Associate State of Mercosur represents a unique opportunity to strengthen trade relations and attract strategic investments to the country. “We are very optimistic about the potential of this process, and we are confident that our economic and development policies will attract investors not only from Brazil but the entire region,” said Moltó, instilling a sense of optimism and hope in the audience.

A New Phase in Bilateral Relations

Ambassador Moojen de Abreu e Silva emphasized the importance of this new phase in bilateral relations, suggesting that it could generate numerous shared opportunities for both countries. “We are on the brink of a revolution in relations between Brazil and Panama, as well as with the other Mercosur countries,” the ambassador declared, underscoring the vital importance of maintaining a fluid dialogue between the authorities of both nations to ensure the success of this new era of investments in Panama.

Regional Economic Integration and Collaboration

The growing Brazilian interest in investments in Panama also reflects a broader trend of economic integration in Latin America. As the region’s economies seek to diversify their markets and strengthen their trade ties, countries like Brazil and Panama are exploring new forms of collaboration that benefit all parties involved.

Panama as a Strategic Partner in Regional Expansion

With its strategic location and economic stability, Panama is an attractive partner for Brazil in its regional expansion strategy. Brazil, the largest economy in Latin America, offers Panama access to a vast and growing market and the possibility of attracting investments in critical sectors for the country’s economic development.

The Impact of Collaboration within Mercosur

Collaboration between Panama and Brazil within the framework of Mercosur could transform economic relations in the region, creating new business opportunities and promoting sustainable development in both countries. Aware of the potential of this new scenario, Brazilian companies are taking steps to position themselves strategically in Panama and seize the opportunities this agreement could offer for investments in Panama.

Panama’s Strategic Advantage as a Logistics Hub

Panama’s logistics and transportation hub role in the region is crucial in this context. Its advanced infrastructure and foreign investment-friendly economic policy make Panama an ideal destination for Brazilian investments in Panama as they seek to expand their operations in Latin America.

The Promising Future of Brazil-Panama Relations

The future of relations between Brazil and Panama looks promising. With a fluid dialogue and mutual commitment to achieving common goals, both countries are well-positioned to fully capitalize on the opportunities this new phase of collaboration can bring, particularly regarding investments in Panama. As Panama’s integration into Mercosur advances, we will likely see a continued increase in Brazilian companies’ interest in investments in Panama, contributing to economic growth and strengthening trade ties.

Conclusion: A Bright Future for Brazilian Investments in Panama

As the relationship between Brazil and Panama continues to evolve, the momentum behind Brazilian investments in Panama is poised to grow even more vital. This surge in interest is a testament to Panama’s strategic advantages as a logistics and transportation hub and reflects the broader economic integration taking shape across Latin America. The prospect of Panama becoming an Associate State of Mercosur has resonated with Brazilian companies, sparking a wave of interest in investments in Panama, particularly in sectors ranging from biofuels to technology. These investments in Panama signify more than just economic transactions—they represent a shared vision for regional development and prosperity. As both nations deepen their collaboration, Panama stands to benefit from the influx of capital and expertise that Brazilian investments bring, further solidifying its role as a critical gateway for trade and investment in the region. With continued dialogue and a mutual commitment to advancing shared goals, the future of Brazilian investments in Panama appears bright, promising substantial contributions to the economic growth and integration of the region.

Miguel Collado, Executive Vice President of the Regional Center for Economic Strategies (CREES), urges the promotion of new projects. Foreign direct investment (FDI) in the Dominican Republic has been a critical pillar for the growth of sectors such as tourism and manufacturing. The substantial FDI inflows have driven the local economy and positioned it as one of the leading economies in Latin America and the Caribbean. This growth is a testament to the potential and future of these sectors in the Dominican Republic.

The Caribbean nation stands out in the region regarding receiving these capital flows. As a result, in 2023, the Dominican Republic achieved a significant milestone with record FDI flows arriving, totaling US$4.39 billion, representing a 7% increase compared to the previous year. This impressive performance surpassed the US$3.5 billion in the previous year. Despite the ‘milestone’ in the substantial amount of money, last year, the number of new projects decreased to 26, several initiatives that mobilized US$1.839 billion, just over half (52%) of the value reported in 2022, when 30 initiatives backed by foreign direct investment were recorded.

Among the most prominent sectors, renewable energy led the project announcements in the country, with six projects valued at over US$700 million combined, representing 43% of the total. Also noteworthy are two projects in the hotel and tourism sector, both led by Spanish companies, with a combined estimated value of around US$420 million.

Reinvestment in the Dominican Republic

When discussing FDI, the general idea is that ‘foreign currency enters’ the local economy. However, of the more than US$32.184 billion in foreign investments recorded in the last decade, 45.8% is reinvestment in the Dominican Republic’s profits. This significant figure speaks volumes about investors’ confidence in the country, underscoring their integral role in the economy’s growth. ‘We consider it very relevant to note that not all that is recorded as FDI is new capital entering the economy,’ states the Regional Center for Sustainable Economic Strategies (CREES). ‘Consequently, it is not foreign currency entering the economy’s flow through its exchange market,’ it adds.

A report from the Economic Commission for Latin America and the Caribbean (ECLAC) indicates that in the region, in 2023, profit reinvestment in the Dominican Republic showed a 15% growth, while capital contributions and inter-company loans experienced decreases of 22% and 36%, respectively, compared to the previous year. As a result, reinvestment of profits became the component with the highest participation in FDI inflows in Latin America and the Caribbean, accounting for almost half of all revenues. Given the growing accumulation of FDI, the upward trend in reinvestment in the Dominican Republic makes sense. In some countries, it is also explained by regulations that incentivize or mandate the reinvestment of profits.

ECLAC’s publication explains that, in the specific case of investment incentives, where they are available, no analyzed country has differential treatment between national and foreign investments. However, in the particular case of the Dominican Republic, it was mentioned that national investors are requesting access to an accelerated mechanism available to international investors.

The Executive Vice President of CREES, Miguel Collado di Franco, told elDinero, “As a country, we want more foreign direct investment in the form of new projects, not necessarily as reinvestment in the Dominican Republic. New projects are needed to grow and create more jobs, generating higher incomes and prosperity.” Of the US$4.39 billion recorded last year as foreign direct investment (FDI) by the authorities, around 39% was reinvestment. Only US$3.281 billion was new capital entering the Dominican Republic. “This is not something that should be surprising. Observing the five-year series, higher percentages of reinvestment can be seen in recent periods. It is also important to note that this occurs in other countries,” CREES notes.

Authorities

This reality is shared by Ismail Ersahin, Executive Director of the World Association of Investment Promotion Agencies (WAIPA), and Marcial Smester, Investment Director at the Dominican Republic Export and Investment Center (ProDominicana). Ersahin explained to elDinero that globally, the predominant trend in FDI is reinvestment, meaning that companies already established in a country decide to expand their operations instead of new foreign investments. “Most companies that are already established find it easier to continue growing in the local economy, as they already know the market, have trained labor, and have a favorable environment for continued investment,” added Smester, who also mentioned that while foreign direct investments decreased by 10% this year globally, there is an increase in Greenfield investments, those made in new projects or expansions from scratch.

“This trend offers a significant opportunity for the coming year, in which we might see a rebound in foreign direct investment in the Dominican Republic,” he assured. Experts also agreed that facilitating a favorable environment is crucial to attracting reinvestment and new investments. Simplifying procedures, ensuring economic stability, and creating appropriate incentives are determining factors for companies to continue trusting the country as a safe and profitable destination for their capital. Ersahin emphasized that a long-term vision is essential for any investor: “A US$100 million investment is not made to withdraw in two years. It is about building a solid structure, creating jobs, and fostering economic growth for the company and the country.”

Economy

According to ECLAC data, FDI was responsible for 47% of the Dominican Republic’s GDP in 2023, totaling more than US$57.649 billion since 2001. However, Collado Di Franco believes it is more important to measure the contribution of these funds annually rather than the cumulative total over time. “It is important to note that while the registration of foreign direct investment has increased by 71.5% since 2020, as a percentage of the product, the change has not been very significant in the last three years,” he noted. In 2022 and 2023, the ratio remained between 3.5% and 3.6%. “It must be considered that in 2023, the GDP of the Dominican Republic grew below the average, impacting the increase in the ratio,” he added.

The Dominican Republic must create a favorable business environment to attract more foreign direct investment and generate significant change. CREES explains that this involves implementing structural reforms that reduce costs and establish fair rules for all participants, regardless of the size of their ventures. Key areas that Collado Di Franco believes need improvement include the tax system, the labor market, the energy sector, the hydrocarbons market, state bureaucracy, and the speed of resolving legal conflicts.

“Without these reforms, the country will continue to maintain the ‘status quo,’ and foreign direct investment will not significantly impact employment and income in various economic sectors.” In this sense, it becomes a priority to continue creating favorable conditions for reinvestment in the Dominican Republic, but more so for attracting new capital.

Dynamics in Latin America and the Caribbean

Looking at data from Latin America and the Caribbean, Argentina experienced a significant increase in foreign direct investment (FDI), rising from US$15.201 billion in 2022 to US$23.866 billion in 2023, representing a notable 57% increase and the highest value recorded since 1999. However, ECLAC clarifies that this increase is affected by capital movement restrictions, leading to significant inflows in inter-company loans and profit reinvestment. Chile also saw an increase in FDI, from US$18.237 billion in 2022 to US$21.738 billion in 2023, representing a 19.2% increase. With almost 9% of the region’s FDI inflows, Colombia maintained a similar level of FDI in 2023 compared to 2022.

The Caribbean saw a 27.6% increase in 2023 compared to the previous year, mainly due to increased inflows to Guyana and the Dominican Republic. In the case of Guyana, FDI inflows showed a significant increase (63.8%) and reached US$7.198 billion in 2023. This increase can be primarily attributed to the growing activity in the oil sector. The country has emerged as one of the new oil producers in the region, attracting considerable FDI inflows in recent years.

The Dominican Republic, for its part, experienced a 7.1% increase in FDI inflows in 2023, reaching US$4.39 billion. The services sector was the primary recipient of these investments, accounting for 78% of the total and experiencing a 10% growth. The manufacturing sector ranked second, with a 16% share and a 13% growth.

Investments in the Region

In 2023, Latin America and the Caribbean received US$184.304 billion in foreign direct investment (FDI). According to ECLAC data, this figure is 9.9% lower than in 2022, although it remains above the last decade’s average. With this decline, the share of FDI inflows in the region’s gross domestic product (GDP) also decreased, representing 2.8% in 2023. Despite this, the region’s inflows accounted for 14% of the global total in 2023, a share higher than the average of the 2010s (11%).

Reinvestment in the Dominican Republic has become a pivotal factor in sustaining the nation’s economic growth, particularly in foreign direct investment (FDI). In 2023, the Dominican Republic achieved record FDI inflows of US$4.39 billion, a 7% increase from the previous year. However, a significant portion of this investment—around 39%—came from reinvestment in the Dominican Republic, highlighting the confidence of existing investors rather than new entrants. While this reinvestment in the Dominican Republic supports economic stability, experts like Miguel Collado of CREES emphasize the need for new projects to drive job creation and income growth. Structural reforms are essential to creating a favorable business environment that attracts reinvestment and new capital. Despite the rise in reinvestment, the Dominican Republic stands out in the region, with substantial FDI contributions, particularly in the renewable energy and services sectors.