The Central Bank of the Dominican Republic's National Survey of Financial Inclusion found that 53.69% of Dominicans do not have a bank account or any financial credits, while 46.31% mostly have savings accounts and to a lesser extent, loans and other banking instruments. The survey, covering 3,744 households nationwide, was conducted in December 2019 and does not account for the impact of the COVID-19 crisis. Reasons for not having a bank account included not needing one, insufficient income, or the high cost of financial services. The survey also noted that government subsidies helped increase the level of banking among citizens, and financial inclusion was higher among those with higher incomes.

Nayib Bukele announced his re-election for another five years, claiming it as a democratic milestone for El Salvador. However, critics argue that his regime is authoritarian, citing the dismissal of Supreme Court judges and the imposition of a state of exception that suspends constitutional rights. Organizations like El Faro and academic institutions describe Bukele's government as an autocracy, with concerns over human rights violations and suppression of dissent. Reports indicate a decline in democratic values and an increase in authoritarian preferences in the region.

The Dominican government regained full control of Refidomsa by acquiring the 49% stake previously held by PDV Caribe, a subsidiary of Venezuela's state oil company PDVSA. The transaction involved a two-stage process, including a share swap and a subsequent purchase for 74 million euros. The deal was facilitated with the approval of the U.S. Office of Foreign Assets Control (OFAC) to ensure compliance with sanctions against Venezuela. The move ends a partnership that began in 2010 under Hugo Chávez and aims to remove financial and operational constraints imposed by the Venezuelan stake.

Francisco Israel Brito, president of the Dominican Federation of Pig Farmers, assured that pork consumption is safe for humans despite the African swine fever outbreak in the Dominican Republic. The disease is being controlled in the affected areas, and consumer confidence is returning. Only three out of 300 pig farms are affected, and the disease does not spread through the air. The sector, which produces 73% of the country's pork demand, has received significant support from the government, including financial compensation for affected farmers. Brito emphasized the importance of national unity in supporting the pig farming sector.

Two decades after its approval, the Dominican Republic's Congress is revisiting Law 87-01 on Social Security to address weaknesses in health and pensions. The government has yet to present a formal reform proposal, but key figures like Luis Miguel de Camps and Arismendi Díaz Santana have highlighted necessary changes, including increasing contribution levels and retirement age. Experts agree on the need for higher contributions and adjustments to retirement age to improve pension amounts. Additionally, there is a call for policies addressing low wages and the establishment of a primary healthcare network to alleviate pressure on the healthcare system.

Prices of key construction inputs such as iron ore, steel scrap, and PVC materials are starting to decline in international markets after reaching historic highs due to the COVID-19 pandemic. This downward trend is expected to lower housing unit prices for consumers. The Asociación Dominicana de Constructores y Promotores de Viviendas noted that previous price hikes had increased real estate project costs by 31.5%. The construction sector, heavily impacted by inflation, is a focus of government discussions on special measures to address the international price crisis. Nearly 196 proposals have been received from various sectors, suggesting temporary subsidies, tariff reviews, and other measures.

The Central Bank Governor, Héctor Valdez Albizu, announced that inflation is expected to close the year between 5% and 5.5%, slightly above the target range of 4%. The Central Bank continues its monetary stimulus plan initiated in March 2020, with liquidity provisions amounting to RD$215 billion, equivalent to 5% of GDP. Detailed financing channels have been presented, with RD$196,285.1 million allocated to businesses and households through new loans, refinancing, and debt restructuring. Key sectors receiving funds include commerce, SMEs, households, manufacturing, construction, and exports.

The Dominican Republic regained full control over Refidomsa after a transaction involving the Venezuelan state oil company PDVSA and its subsidiary PDV Caribe. The deal was facilitated by Patsa, a subsidiary of Grupo Rizek, which exchanged devalued Venezuelan bonds for Refidomsa shares. The US sanctions on PDVSA had severely hampered Refidomsa's operations, making this reacquisition crucial for the Dominican government. The transaction was approved by the US Office of Foreign Assets Control (OFAC), ensuring compliance with international sanctions.

The article outlines the process for claiming pension funds from deceased family members deposited in Administradoras de Fondos de Pensiones (AFP) in the Dominican Republic. It details the eligibility criteria for beneficiaries, the required documentation, and the legal procedures involved. The Consejo Nacional de Seguridad Social has resolved that heirs are not required to pay inheritance tax to access these funds, aiming to expedite the process. The Superintendencia de Pensiones ensures that the return of balances to heirs never expires, and the Junta Central Electoral provides data to AFPs for updating records.

Water usage in agriculture and industry is increasing in the Dominican Republic, with significant wastage due to outdated irrigation methods. Manuel Matos, a local bean producer, highlights the inefficiency of current irrigation practices and advocates for more efficient pressurized systems. UNESCO and the World Bank report on the growing demand for water in agriculture due to population growth and climate change, projecting significant increases in water usage for food production and industrial activities by 2050. The Ministry of Economy, Planning and Development and the Ministry of Industry and Commerce and Mipymes provide data on the current and future water demands in various sectors, emphasizing the economic importance of water in the region.

The Dominican State has acquired Pdvsa's shares in Refidomsa through a coordinated transaction involving the Venezuelan government, Grupo Rizek, and the U.S. government to ensure compliance with sanctions. The transaction was executed in two parts, with Pdvsa selling its shares to Patsa, which then sold them to the Dominican government for 74 million euros (88.14 million dollars).

Recent delays at the Chinese ports of Yantian and Shekou due to COVID-19 restrictions have exacerbated the already high container prices, significantly impacting Dominican Republic imports from China. Importers report unprecedented costs for 40-foot containers, with prices reaching $11,400. The price surge, which began last year due to the pandemic's effects on international trade, has led to increased tariffs and inflationary pressures. The Central Bank of the Dominican Republic noted a 9.65% rise in the consumer price index over the past year, with further inflation data pending.

The COVID-19 pandemic has severely impacted the shipping industry, leading to container shortages, delays, and port closures, which have disrupted international trade. Representatives from the Asociación de Navieros de República Dominicana, including Teddy Heinsen and Cristyan Peralta, indicate that freight rates may continue to rise due to high demand, particularly from the United States. The shipping route from China, which accounts for 30% of the Dominican Republic's imports, has been significantly affected. The situation is expected to stabilize by mid-2022 as new containers are manufactured and integrated into the system. However, the exact timeline remains uncertain.

Interest payments on debt represented 17.6% of public spending in July, a significant increase from 9.6% in the same month of 2020. The majority of these payments were for domestic debt, accounting for 79.2% of the total. Social services received 52.7% of public spending, with education and health being the primary beneficiaries. Education spending decreased by 15.3% compared to the previous year, while health spending increased by 16.1%.

The article discusses the concentration of the pension fund administration (AFP) business in the Dominican Republic among a few financial groups, highlighting their close relationships with subsidiary insurance companies. It details how five out of seven AFPs contract insurance companies within the same financial conglomerates to handle disability and survivorship pensions. The article also compares the Dominican regulatory environment with that of Chile, noting the lack of restrictions on such relationships in the Dominican Republic. It provides statistical data on the financial performance of these companies and mentions ongoing legislative discussions aimed at reforming the pension system.

Falcondo's request for a permit to exploit Loma Miranda has sparked strong reactions from environmental groups, who view the move as distressing and audacious. The Ministry of Environment has received the request and will follow the formal process, while the Ministry of Energy and Mines is responsible for granting mining concessions. Yanio Concepción of Vega Real Cooperative criticized the lack of public consultation and called on President Luis Abinader to address the issue. Environmentalists, including Nelson Bautista of Fundación Acción Verde, emphasize the need for clear territorial protection and express concerns about the environmental impact of ferronickel extraction.

Between January and July, the Dominican Republic paid nearly $4,489.8 million in non-financial public sector debt service, with the majority allocated to local market debt principal and interest payments totaling $2,885.4 million. External debt payments amounted to $1,604.4 million. As of July, the non-financial public sector debt stood at $47,590.2 million, equivalent to 54.2% of GDP. Total state debt, including Central Bank operations, was 68% of GDP as of June.

The Dominican government has renewed its interest in discussing the fiscal pact to be implemented next year, as revealed by the Minister of the Presidency, Lisandro Macarrulla. The discussions will begin within the Council for Economic and Social Affairs (CES). President Luis Abinader had previously indicated the need for fiscal reform negotiations, which were delayed due to the pandemic. Improved fiscal conditions, with public revenues increasing by 18.6% and a fiscal surplus recorded in May, have prompted this renewed focus. The government aims to not only increase public revenue sources but also improve state spending efficiency. Austerity measures have been introduced, including restrictions on celebrations and purchases, as part of this fiscal strategy.

Celso Juan Marranzini, president of the Asociación de Industrias de República Dominicana (AIRD), emphasizes the need for comprehensive reforms in labor laws, social security, and fiscal policies to foster economic growth and job creation. He highlights the burden of severance pay on businesses, advocating for a more modern and adaptable labor code. Marranzini and Circe Almanzar, AIRD's executive vice president, stress the importance of a well-studied fiscal reform to avoid negative impacts on the economy, citing past experiences. They call for a stable regulatory environment to support industrial development and competitiveness.

Falconbridge Dominicana (Falcondo) is seeking permits to exploit Loma Miranda to extend its ferronickel production in the Dominican Republic by 20 years. The current mining area is nearing depletion, and the company views Loma Miranda as the most viable option. The project has sparked environmental debates, with some advocating for the area to become a national park. Falcondo's majority owner, Americano Nickel Limited, has been operating in the country since the 1970s. Despite the COVID-19 pandemic, the company maintained production and remains optimistic about its future, with support from the Dominican government.

The International Monetary Fund (IMF) has reiterated that tax collection in the Dominican Republic is lagging compared to its peers. The IMF suggests that the country has room to mobilize more revenue by broadening the tax base and rationalizing tax exemptions. The IMF's report, following a recent mission to the country, emphasizes the need for fiscal and electrical sector reforms to ensure debt sustainability as the impact of the pandemic recedes.

Pension Fund Administrators (AFP) in the Dominican Republic hold 2,344 million pesos in individual capitalization accounts belonging to deceased contributors, which have not been claimed by their families. The Superintendencia de Pensiones (Sipen) reports that this issue has worsened over time, with the amount of unclaimed funds increasing from 1,900 million pesos less than two years ago. The main problem is that AFPs do not contact the families of the deceased, despite having information on potential heirs. The law specifies who is entitled to these funds, and recent resolutions aim to facilitate the claiming process by exempting beneficiaries from inheritance tax. The process for claiming funds depends on whether the deceased was already retired or still contributing to their account at the time of death.

The 5G auction in the Dominican Republic aims to position the country as a leader in Latin America for this advanced technology. The process, managed by the Instituto Dominicano de Telecomunicaciones (Indotel), involves assigning frequencies through an international public tender. Licenses will last 20 years for new market entrants and will require commitments to improve connectivity in underserved regions. Companies must meet specific coverage and speed targets, with a focus on both rural and urban areas. The auction's results are expected by August, with contracts signed by September to initiate investments.

Inflation in the Dominican Republic has risen by 8.3% over the past year, significantly exceeding the government's target of around 4%. In March alone, inflation increased by 0.60%, driven primarily by higher prices for regular and premium gasoline and diesel. The first quarter saw price increases of up to 60% for certain products like sour lemon and passion fruit. Conversely, prices for ripe and green plantains and onions decreased by 19% to 21%. The Central Bank expects inflation to start converging towards the target range of 3% to 5% annually from June. Alejandro Werner from the IMF noted that the global price surge is expected to be temporary, reflecting low price levels from the same period in 2020 due to the pandemic. The cost of the basic basket in March averaged 37,774.71 pesos, varying by social stratum.

Hotel occupancy during Holy Week is estimated to reach around 50.5% of operational rooms, according to the National Association of Hotels and Tourism (Asonahores). This would represent the highest level of hotel occupancy recorded by the tourism industry in the past year, as stated by Rafael Blanco Tejera, president of Asonahores.

The pandemic's impact on female employment has been mixed in the Dominican Republic. While women were more affected by unemployment due to COVID-19, they ended the year with a slightly higher average salary than men. In January, women earned an average of 26,820.4 pesos per month, 2.8% more than men. The educational gap and access to managerial positions contribute to these differences. Women have higher educational attainment, with 33.4% holding a university degree compared to 17% of men. Despite higher salaries, the glass ceiling persists, with only 1.44% of women in employer or partner roles compared to nearly 4% of men. The pandemic particularly affected informal sector jobs, with 60% of job losses in the third quarter of 2020 being women.

The Dominican government projects an increasing budget deficit and debt for 2022 without fiscal adjustments. The Ministry of Finance's report to Congress outlines three scenarios: maintaining current fiscal policies, adjusting public spending and debt management, and implementing a comprehensive fiscal reform. The report highlights the ongoing impact of COVID-19 on the economy and the need for measures to increase revenue and reduce tax evasion. The government's budget formulation is influenced by commitments made in 2021, including salary increases, pensions, and social assistance programs.

The article discusses the economic challenges faced by the Dominican Republic due to rising global commodity prices, particularly hydrocarbons, and their impact on inflation. Víctor “Ito” Bisonó, the Minister of Industry, Commerce, and Mipymes, describes the situation as a temporary issue exacerbated by reduced production during the pandemic. Despite price increases, there has been no shortage, and the economy continues to grow. The government, under President Luis Abinader, is absorbing a significant portion of fuel costs to minimize the impact on consumers, although this adds to public debt. The article also highlights the country's export growth and the resilience of industries during the pandemic.

The Dominican peso has strengthened against the US dollar over the past year, with the exchange rate dropping from 58.46 to 56.63 pesos per dollar. This change is attributed to the Central Bank's market interventions, reduced economic uncertainty, and moderate demand. The exchange rate decline has been more pronounced in recent weeks, with banks selling dollars between 56.6 and 57.55 pesos. Despite a 17.5% increase in dollar demand compared to last year, the demand is only 2.4% higher than in August 2019. Authorities expect the average dollar rate to be 57.82 pesos this year, indicating a 2.2% devaluation of the local currency, significantly lower than last year's 10.24%.

Fourteen months after its inauguration, the Punta Catalina power plant continues to face operational challenges, including multiple shutdowns and reduced capacity. The plant, designed to generate 752 megawatts, is currently producing 618.20 megawatts. Supply issues with coal have been acknowledged by the Minister of Energy and Mines, Antonio Almonte. The consortium Odebrecht-Tecnimont-Estrella has formally notified the government of potential risks with substitute coal. The plant has initiated 16 public procurement processes in 2021, totaling significant financial investments, to address operational needs and monitor environmental and financial performance.

Authorities will soon initiate a pilot plan to temporarily ban heavy cargo transportation from entering the National District from 6:00 AM to 8:00 PM. Hugo Beras, the Secretary-General of the National District's City Hall, did not specify the start date or duration of the measure. The plan involves the National District's City Hall, the Ministry of Public Works, Intrant, transporters, and businessmen, with technical support from the Inter-American Development Bank. Beras mentioned that only trucks with special authorization would be allowed entry. The measure is expected to affect 3,000 to 4,000 heavy cargo vehicles that currently transit through the capital daily.

The Corporación Dominicana de Empresas Eléctricas Estatales (Cdeee) has initiated an urgent procurement process to acquire enough coal to operate the Punta Catalina power plant until mid-January 2022. The plant is currently operating at 50% capacity due to delays from its coal supplier, Xcoal Energy & Resources, caused by geological and machinery issues. The urgency of the situation has led to a planned expenditure of $47 million for 420,000 metric tons of coal, adding to the $120 million for 900,000 metric tons from another ongoing procurement process. The plant has faced multiple operational interruptions this year, and a press conference has been scheduled by the Ministry of Energy and Mines to address the situation.

As of June, the Dominican Republic's consolidated public debt reached a historic high of $59.648 billion, representing 68% of the GDP. The debt increased by nearly $13 billion over the past twelve months, with a 25% rise since the declaration of the COVID-19 pandemic in March 2020. A significant portion of emergency subsidies for workers affected by the virus was financed through external debt, with 70% of the $144.869 billion in social aid since the pandemic's onset sourced from external debt, including funds from the IMF and the World Bank. The external debt stood at $33.251 billion, while local market commitments were $26.397 billion. The non-financial public sector (SPNF) was the primary source of debt, with the central government and other executive branches issuing $47.406 billion in debt, a 22.9% increase from the previous year. The central government paid $2.627 billion for debt service in the first half of the year.

Since the reopening of borders in July 2020, the tourist landscape in the Dominican Republic has changed, with a shift in the demographic profile of visitors due to the COVID-19 pandemic. The typical visitor remains predominantly from the United States, but there has been an increase in tourists from Latin American countries. The Central Bank of the Dominican Republic's data shows a change in visitor origins, with a decrease in European tourists and an increase from other regions. Tourists are spending less but staying longer, with an average daily expenditure decrease of 3.8% compared to 2019, and an increase in average stay from 8.12 to 9.28 nights. There has also been a notable increase in younger tourists and a shift in travel purpose, with more visitors coming to see friends or partners rather than purely for vacation.

The legal reform aimed at reducing the commissions received by Pension Fund Administrators (AFP) in the Dominican Republic has not decreased their revenue. Despite the new law, AFPs reported a 4% increase in commission income in the first half of the year compared to the same period in 2020. The reform, enacted by former President Danilo Medina, intended to gradually reduce commission rates, but the expected reduction in AFP income has not materialized. The Superintendencia de Pensiones' quarterly report highlights that AFPs' commission income continues to rise, contradicting the anticipated outcomes of the reform.

The Deputy Minister of Tourism, Jacqueline Mora, announced that the delayed beach regeneration plan will start in 2022 after technical analyses and a new tender process. The original project from Danilo Medina's administration was rushed and lacked a long-term vision. The Inter-American Development Bank is involved in the new survey, and the plan includes the regeneration of 16 beaches with a 10-year outlook. Mora also highlighted the Dominican tourism sector's strong recovery compared to global levels, and the opening to new markets such as Poland, Romania, and Ukraine. Paola Rainieri, former president of Asonahores, expressed excellent expectations for the upcoming high tourist season.

The Dominican Republic's economy is expected to grow by more than 7% in 2021, recovering from the significant impact of the COVID-19 pandemic, which resulted in an economic loss of $18.459 billion in 2020. The Minister of Economy, Planning, and Development, Miguel Ceara Hatton, highlighted the severe economic challenges and the substantial public debt incurred to mitigate the crisis. He emphasized the need for fiscal reforms and a more equitable tax structure to improve the quality of life. The decision on when to initiate these reforms lies with the President of the Republic.

The revised macroeconomic framework as of August indicates a new economic growth target of 10% for this year, an improvement from the previous estimate of 7.5% in June. The COVID-19 pandemic caused a 6.7% economic decline in 2020, but the Monthly Economic Activity Index (Imae) rebounded by 13.1% in the first seven months of this year. Rafael Espinal from Intec finds it challenging to estimate this year's economic growth accurately, while economist Franklin Vásquez considers the 10% growth estimate overly optimistic, suggesting a more realistic 8% increase.

On July 16, 2021, the Dominican Republic's Ministry of Labor implemented the first phase of the minimum wage increase as per resolution 01/2021. Large companies' base salaries are now 20,000 pesos per month, medium companies at 18,500 pesos, small companies at 12,400 pesos, and micro companies at 11,500 pesos. Security guards are to earn 16,750 pesos. The second increase is scheduled for January 1, 2022, with further wage adjustments for employees. Agricultural workers will earn 500 pesos per day for 10-hour workdays, with proportional adjustments based on hours worked, with no further adjustments in January.

The Dominican Institute of Telecommunications (Indotel) has sanctioned Trilogy Dominicana (Viva) for the illegal use of the radioelectric spectrum, detected in June 2017. Indotel imposed fines totaling RD$369.11 million for serious and very serious sanctions, as well as for the counterpayment of the rights of exclusive exploitation of the illegally used frequencies. The resolution 064-2021 orders Viva to cease using certain frequency segments and to refrain from marketing services through those frequencies. The sanction concludes a long process of demands, claims, delays, absence of rulings, and the prescription of the process. Viva has categorically rejected the resolution and announced it will take legal and administrative actions against it.

The COVID-19 crisis will cost the Dominican Republic at least RD$64,413.7 million in 2021, surpassing the annual budgets of several ministries. Nearly half of this amount is allocated for vaccine purchases, with significant expenditures also directed towards subsidies to curb price increases caused by the pandemic. President Luis Abinader's letter to the National Congress outlines these costs and requests approval for a supplementary budget. The letter highlights increased expenses due to the pandemic, including unbudgeted costs for vaccines, PCR tests, pensions for emergency personnel, and various subsidies. The government also faces additional financial burdens from international fuel prices affecting electricity subsidies.

The Superintendence of Pensions (Sipen) reported that the 19,056 million pesos in commission income received by Pension Fund Administrators (AFP) is the accumulated amount from June 2003 to the same month this year. AFP's commission income for the first half of the year was 3,964.7 million pesos, showing a slight growth compared to the same period in 2019. A law passed in February 2020 by Danilo Medina's government restructured the commission rates, aiming to reduce AFP's income levels. The Dominican Association of Pension Fund Administrators (Adafp) highlighted that affiliates earned over 39,000 million pesos in investment returns in the first half of the year, with each affiliate earning significantly more in returns than the commissions paid.

The Dominican Republic's fiscal deficit for 2021 is expected to be higher than initially projected, reaching 210,224.9 million pesos or 4.2% of GDP, due to ongoing pressures from the pandemic. However, President Luis Abinader assures that this increase will not lead to higher public debt, as it will be covered by available resources from previous debt management and reduced financial applications. The need for new debt has been reduced by 37,808.9 million pesos compared to the original budget, partly due to lower interest and commission expenses on public debt, influenced by the Central Bank's stable currency policy.

Héctor Valdez Albizu, governor of the Central Bank of the Dominican Republic, reported that the economy experienced a 21.2% growth at the end of May, leading to an accumulated growth of 13.4% from January to May 2021. He highlighted that the growth was robust and that the economy is on track to grow above 8% for the year. The sectors with the highest growth in May included construction at 54%, free zones at 30.1%, mining at 16.2%, local manufacturing at 15.9%, and transportation at 14.3%.

Limber Cruz, the Dominican Republic's Minister of Agriculture, acknowledges consumer discomfort due to price increases but emphasizes that scarcity is a worse scenario, which the country has avoided as agricultural production continues despite the crisis. The government has intervened by subsidizing some agricultural producers to address supply issues, as seen with onions and carrots. Cruz highlights that while international commodity prices have risen, local agricultural production has not been significantly affected, and the government has managed to control food prices. The government has also provided financial support to the sector, including 5 billion pesos at zero interest rate. Additionally, the government has initiated corn and sorghum planting to mitigate the impact of high raw material costs on food production.

The requirement for a negative PCR test or vaccination card for travelers from 18 countries starting June 28 will affect only 1.32% of the visitors to the Dominican Republic. Authorized by the Civil Aviation Board (JAC), this measure mandates travelers from specified nations to prove they are COVID-19 free or fully vaccinated before entry. According to Central Bank data, approximately 12,766 tourists from these countries visited the Dominican Republic between January and May out of a total of 964,596 foreign visitors.

Companies affected by the annulment of awarded lots by the Ministry of Education (Minerd) are satisfied with the decision by the Directorate General of Public Contracts (DGCP). The DGCP annulled 45 out of 56 lots of netbooks, laptops, and tablets awarded in December 2020, citing procedural issues. The Minerd and affected companies have the option to appeal the decision within 30 days. The DGCP's resolutions have been seen as a sign of administrative change, though the Minerd has yet to respond formally. The DGCP clarified that the Minerd must reassess the economic offers of disqualified companies and re-award the lots if necessary.

Shipping container prices have risen unevenly, particularly from China, due to economic recovery imbalances post-COVID-19. This has contributed to consumer price increases, exacerbated by customs duties calculated on freight costs. The Central Bank of the Dominican Republic suggests that reverting customs tax calculations to pre-pandemic freight prices could significantly reduce consumer prices. The Director General of Customs is exploring ways to expedite this potential policy change, though customs tariffs are determined by the Ministry of Finance or Congress.

The highest price increases over the past twelve months have occurred in the southern region of the Dominican Republic, with inflation reaching 10.9%. The northern region follows with a 9.7% increase, and the eastern region with 9.6%. The Ozama region, including Santo Domingo, experienced the lowest inflation at 9.2%. National average inflation between April 2020 and April 2021 stands at 9.65%. The Central Bank Governor, Héctor Valdez Albizu, maintains a year-end inflation forecast of around 4-5%, expecting inflationary pressures to ease from June. Agricultural goods and fuel prices have significantly contributed to consumer price increases.

Dominican authorities, led by Tourism Minister David Collado, participated in the Fitur 2021 tourism fair in Madrid, Spain, projecting a 10% increase in visitors for May. The event highlighted collaborative efforts between the public and private sectors, with significant financial support from Banreservas and new investments from Grupo Globalia. The World Tourism Organization praised the Dominican Republic's tourism strategy and announced the country as the guest for Fitur 2022. An agreement with Iberia will increase flight frequencies, further boosting tourism recovery post-COVID-19.

The Dominican government is striving to increase revenue without resorting to major fiscal reforms that would require congressional approval. Administrative Minister Ignacio Paliza indicated that government technicians are analyzing the necessity of a fiscal reform, which is part of the National Development Strategy but has seen little progress. The Directorate General of Internal Taxes (DGII) has communicated the enforcement of an existing 2% tax on financial transactions above a certain threshold, contributing to positive tax collection results. Additionally, the government is exploring non-recurring revenue sources such as fiscal amnesty and combating illicit trade, with the Directorate General of Customs signing an agreement to control the illegal cigarette market.

Public spending on construction projects in the Dominican Republic fell by 67.5% to 2,311.9 million pesos between January and April 2021, compared to 7,123.3 million pesos in the same period last year. The Dirección General de Presupuesto reported this significant decline. Despite this, the Central Bank of the Dominican Republic noted a 53.1% growth in the construction sector during the same period, without distinguishing between public and private sector performance. Overall, the government spent 248,881.9 million pesos in the first four months of the year, with significant portions allocated to public sector wages, transfers, and public debt interest.

Tourism ministers and officials from the Americas gathered in Punta Cana to discuss the future of tourism amid the COVID-19 pandemic. The summit emphasized sustainability, technological transformation, and regional cooperation. The Dominican Republic, recognized for its effective pandemic management, hosted the event, highlighting the importance of sustainable tourism practices. The tourism sector faces challenges such as high water consumption and carbon emissions, necessitating coordinated policies. The event also previewed the upcoming Fitur tourism fair in Madrid, which will focus on industry recovery and innovation.

The Dominican Republic's Ministry of Tourism has extended a ban on the sale of alcoholic beverages on beaches and during tourist excursions for at least two months, following nearly a hundred deaths caused by methanol-adulterated drinks. The temporary and preventive measure, which could be extended if necessary, includes sanctions for non-compliance. Albania Martínez, president of the Association of Aquatic Companies of La Altagracia province, opposed the ban and suggested providing a list of authorized liquor companies to mitigate the impact on tourism businesses, which have already been heavily affected by the COVID-19 crisis. The government has declared the issue of adulterated alcohol a national security matter and has increased surveillance and control over the import and commercialization of methanol.

In March, 86% of hotels in the Dominican Republic were operational, with the highest concentrations in La Altagracia, Santo Domingo, Puerto Plata, and Samaná. The operational hotels had an occupancy rate of 40.9%. The tourism sector, severely impacted by the COVID-19 pandemic, showed signs of slow recovery with a 12.6% decline in March, an improvement from February's 45.1% contraction. Tourist arrivals in March increased by 16% compared to the same month last year.

In 2020, the Dominican Republic experienced the most significant decline in GDP per capita since the 2003 banking crisis, with a drop of 11.6%. The pandemic-induced economic downturn led to a per capita income of $7,544, similar to levels five years prior. The Central Bank of the Dominican Republic reported a total GDP of $78,829 million, divided among 10.44 million inhabitants. The COVID-19 pandemic and subsequent lockdowns were primary factors in this economic regression, pushing 268,515 people into poverty despite government emergency subsidies and continued growth in family remittances.

A directive from a Proindustria executive mandating tenants of industrial parks and free zones to purchase insurance policies from Seguros Reservas through Consultores de Seguros Consesa caused internal conflict. The general director of Proindustria, José Ulises Rodríguez, later revoked the order, emphasizing that such decisions should be made freely by the tenants. The directive was criticized for lacking transparency, and internal measures are being taken to prevent similar issues in the future.

The Dominican government has halved its expectation for the depreciation of the Dominican peso for the year, projecting a 4.5% depreciation instead of the previously estimated 9.2%. Economic indicators such as increased industrial activity, revitalized family consumption, unexpected economic growth in February, and reduced COVID-19 uncertainty suggest a positive outlook. However, the tourism sector, crucial for foreign exchange, is expected to recover more slowly, with normalcy anticipated by 2023. Other sectors like energy, water, transport, storage, and financial services are still struggling but less so than tourism-related industries. Inflation is expected to peak in the second quarter before easing, with the highest levels since 2011. Despite inflation, family consumption remains strong, as indicated by increased debit, credit, and subsidy card payments.

Biviana Riveiro Disla, the executive director of ProDominicana, stated that the Dominican government is focused on resolving bureaucratic issues that hinder new investments in the country. The government aims to create a one-stop shop for investments in the very short term and is working on policies and measures to reduce the time and complexity of doing business. This initiative is part of a zero-bureaucracy policy demanded by President Luis Abinader, emphasizing transparency and governmental efficiency. A campaign titled 'Invest in the Dominican Republic' will be launched this week.

In March, the Dominican Republic saw an increase in tourist arrivals to 313,289, the highest since December, yet still below pre-pandemic levels. This represents a 16% growth compared to March 2020, when the country received 270,049 tourists due to a complete border closure. The first quarter of 2021 saw a 48.5% drop in tourism compared to the same period last year, with 717,085 visitors compared to 1,352,459 in 2020. The Central Bank attributes the March results to the government's tourism recovery plan, health protocols, tax relief, and financial measures. Nearly half of the tourists in the first quarter came from the United States, followed by Ukraine and Colombia. Traditional tourist sources like Canada are still under travel restrictions, with only about 6,000 Canadian visitors this year compared to nearly 340,000 in the first quarter of 2020.

The COVID-19 pandemic led to a significant drop in hourly wage income for workers in sectors such as hotels, bars, restaurants, banking, and transportation in the Dominican Republic, with only state-associated sectors avoiding this decline in 2020. According to official data from the Central Bank, the average hourly income in the country fell by 8.3% from 113.8 pesos per hour at the end of 2019 to 104.3 pesos per hour in the fourth quarter of 2020. The banking, insurance, and financial intermediation sector saw the largest decrease, with a 41.2% drop in the same period. The pandemic also increased the total informality rate from 54.8% to 56.8% by the end of 2020, with about 2.5 million people working in the informal economy. Unemployment reached 7.4% in 2020, with the eastern region of the country experiencing the highest job loss, reaching 9.1% unemployment in the fourth quarter.

The increase in public debt levels has resulted in each Dominican citizen owing $5,213, equivalent to 302,979 pesos at the current exchange rate. The per capita consolidated public debt rose by 20% last year due to the economic impact of COVID-19, which forced the Dominican government to seek more debt to offset the sharp decline in tax revenues. The Ministry of Finance reported that the consolidated public debt, including non-financial public sector and Central Bank commitments, reached $54.469 billion in 2020. The Dominican GDP at the end of last year was approximately $78.829 billion, translating to an average per capita income of $7,544.5. The public debt represented 70% of the national income at the end of last year. The Ministry of Finance has indicated that the debt management strategy should focus on structuring debt maturities to reduce fiscal pressures. Last year, $7.35 billion was allocated to debt service payments, with projections indicating significant fiscal pressures between 2023 and 2026 due to concentrated debt service payments.

The Dominican Republic's tourism sector is gradually recovering from the impact of the COVID-19 pandemic, with expectations to return to pre-pandemic levels by 2023. The Central Bank projects an increase in non-resident visitors in 2021, though full recovery depends on global pandemic conditions. Economic activity showed a 1.1% growth in February, driven by sectors like construction, mining, and manufacturing. The Central Bank's monetary stimulus has positively influenced the economy, with an expected annual growth of 5-5.5%. The US dollar's depreciation is being monitored to prevent negative impacts on exports. Remittances and US economic aid are anticipated to benefit the Dominican economy.

Sigmund Freund, the director general of Public-Private Partnerships, stated that the Dominican government's specific proposal in negotiations with the highway concessionaire to Samaná is to eliminate the shadow toll, which is costly to the national budget. Annually, the government pays the concessionaire between $60 and $80 million, which is six times the cost of the highway's construction. The 30-year concession contract, signed during Hipólito Mejía's presidency and altered during Leonel Fernández's term, placed all financial risk on the state. The government has paid 26,835 million pesos for the shadow toll so far.

The exchange rate of the US dollar has decreased by 2.1% in 2021, reversing the upward trend seen throughout 2020. The reference exchange rate has dropped from 58.32 pesos in January to 57.05 pesos per dollar. Despite this decrease, the significant rise in the dollar's value during 2020, influenced by the COVID-19 pandemic, remains. The Dominican peso depreciated by 10.1% last year. Economic recovery and increased certainty about the pandemic's economic impact have eased the exchange market, leading the government to lower its exchange rate projection for the year from 62.30 pesos to 59.13 pesos per dollar.

The Dominican Republic government has launched the Familia Feliz housing program to address the country's significant housing deficit. The initiative aims to build 62,000 homes over four years, with 11,000 planned for completion in 2021. The program targets low-income families, offering homes priced between 800,000 and 2.25 million pesos. The government will subsidize part of the initial payment and interest rates, while private companies will handle construction. The project began with the construction of 3,200 homes in ten locations, including Santiago and Azua, with the involvement of at least 30 construction companies.

COVID-19 significantly impacted the Dominican labor market, leading to a sharp rise in labor inactivity. By the end of the previous year, over three million people were out of the workforce, with no intention of returning. The Central Bank's Continuous Labor Force Survey highlighted that labor inactivity levels surged during the pandemic, with many citing family responsibilities, education, job search fatigue, or the pandemic itself as reasons. The southern region and Greater Santo Domingo were particularly affected, with inactivity rates of 43.7% and 41.7%, respectively. Including the unemployed, nearly half of the workforce in these regions was not employed.

The General Directorate of Public Procurement (DGCP) reported 12 precautionary measures due to challenges against the Ministry of Education's (Minerd) urgent procurement procedures for computer equipment for distance education during the pandemic. The DGCP is currently reviewing these measures, with some defenses already submitted. The Ministry of Education had allocated significant funds for purchasing laptops, netbooks, and tablets, with additional tenders for small and medium-sized enterprises. Minister Roberto Fulcar acknowledged receiving multiple challenges and inquiries regarding recent procurement decisions. The challenges claim non-compliance with tender conditions, and the DGCP ensures that each claim will be addressed.

The Dominican government allocated 133,066 million pesos to mitigate the impact of the COVID-19 pandemic through subsidies like FASE and Quédate en Casa, which significantly reduced poverty and unemployment. The Ministry of Economy, Planning and Development reported that these programs prevented 752,395 people from falling into monetary poverty. However, the Pa’ Ti program was criticized for poor targeting and effectiveness. The subsidies represented over 10% of the national budget, putting pressure on public finances.

The Dominican Republic's state subsidies for fuels will amount to 16,017 million pesos this year, equivalent to 0.33% of the GDP. President Luis Abinader indicated the government's intention to reduce this burden by revising the sectoral aid scheme granted through tax exemptions. The majority of these subsidies are allocated to electricity-generating companies, estimated at 11,596.4 million pesos for the year. Compared to the previous year, the subsidy has been reduced by 10,803.1 million pesos, attributed to the impact of COVID-19 on manufacturing production and service company activities. The Central Bank reported a significant drop in energy and water consumption in the industrial and commercial sectors in 2020 due to the pandemic.

The Ministry of Labor's resolution 01/2021 mandates that companies with mixed classification parameters must adopt the most beneficial range for employees. Economist Antonio Ciriaco warns that this reclassification might harm workers' future income. The resolution aligns with Law 187-17 but adds a new category for large companies. The reclassification has been a contentious issue between unions and employers, with union leaders like Rafael Abreu opposing it as detrimental to workers' rights.

Brian King, president of Marriott International, expresses cautious optimism about the recovery of the tourism sector, emphasizing the role of widespread vaccine distribution in boosting consumer confidence. Marriott plans to expand its presence in the Dominican Republic with new projects and a franchise agreement with Blue Diamond Resort. While the tourism industry is expected to recover steadily in 2021, it will take time to return to pre-pandemic levels. The company highlights the importance of the Dominican Republic as a key destination and anticipates increased demand for travel to the Caribbean and Mexico.

In the Dominican Republic, over half of gasoline prices consist of government taxes and distribution companies' margins. Taxes account for 35.3 to 36.7% of gasoline prices, while diesel and fuel oil are taxed around 25%, and LPG has the lowest tax at 11%. Distribution margins, set by the Ministry of Industry, Commerce and Mipymes, add another 17 to 20%. President Luis Abinader has proposed legal reforms to review fuel pricing structures. The recent government resolution led to significant increases in fuel prices, with premium gasoline rising by 11.5% since the beginning of the year.

President Luis Abinader's address to the National Assembly highlighted the ongoing challenges posed by the COVID-19 pandemic, emphasizing efforts to secure vaccines and manage economic pressures. He announced plans to vaccinate 80% of the Dominican population by June with 8 million doses of Sinovac, amid delays from Pfizer and AstraZeneca. Abinader also addressed inflation concerns and outlined strategies to stabilize prices and boost economic recovery through investments in tourism, infrastructure, and education. The speech underscored a commitment to transparency and distancing from the previous administration's policies, while also dealing with internal conflicts within the Ministry of Health.

Public spending in the Dominican Republic decreased by 25% in January compared to the same month last year, primarily due to reduced investments in public works and capital formation. The Dirección General de Presupuesto reported that state spending was 49,921.1 million pesos, down from 67,254.8 million pesos the previous year. The most significant cuts were in public infrastructure and capital formation, with spending on public works dropping to two million pesos from 1,472.2 million pesos. The Dominican economy continues to feel the effects of COVID-19 containment measures, which have led to a decline in tax revenues and other fiscal income. The largest expenditures were on debt interest payments and education, each receiving over 10 billion pesos in January.

The first doses of the Covishield COVID-19 vaccine, manufactured by the Serum Institute in India under license from AstraZeneca, are arriving in the Dominican Republic tonight via Iberia flight IB6501. The vaccines were transported from Mumbai to London by British Airways, then to Madrid, and finally to Santo Domingo. This shipment marks the first time Iberia has transported vaccines to Latin America. The vaccines will be handled at Madrid's airport, which is a major hub for pharmaceutical distribution in Southern Europe. IAG Cargo, responsible for the logistics, ensures the safe transport and storage of the vaccines.

The first shipment of COVID-19 vaccines, Covishield, manufactured by the Serum Institute of India under AstraZeneca's license, is arriving in the Dominican Republic tonight on Iberia flight IB6501. The vaccines were transported from Bombay to London by British Airways and then to Madrid, finally reaching Santo Domingo. This marks the first vaccine shipment Iberia has transported to Latin America, weighing 110 kilograms. IAG Cargo, responsible for cargo commercialization for IAG airlines, has a specialized product for pharmaceutical transport, 'Constant Climate', ensuring secure vaccine delivery. The WHO has approved AstraZeneca's vaccine for emergency use, and President Abinader indicated that more vaccines are expected before the end of the month.

Josué Gastelbondo Amaya, head of the International Organization for Migration in the Dominican Republic, highlights the lack of legal pathways for Haitian labor migration despite existing laws. He emphasizes the need for legal migration channels, noting that sectors like construction and agriculture require foreign workers due to insufficient local labor. Gastelbondo advocates for a collaborative approach between the private and public sectors to prioritize local labor while accommodating foreign workers legally.

The Caribbean's tourism and flight reactivation is slow, leading to a recovery pace much lower than expected. The IMF has lowered its economic growth projection for the region from an initial 4% to 2.4%, due to the pandemic's extended impact stemming from the area's reliance on tourism. While Latin America is expected to grow more than previously estimated, reaching 4.1%, the Caribbean's recovery contrasts with this trend. IMF Western Hemisphere Director Alejandro Werner emphasized the importance of vaccination in reducing infections, deaths, and hospital use to maintain growth forecasts. He also highlighted the need for government support through subsidies and medium-term programs to ensure fiscal sustainability. The IMF has provided about $1 billion to the Caribbean in 2020 and is open to offering more support in 2021.

Josué Gastelbondo Amaya, the representative of the International Organization for Migration in the Dominican Republic, compared the magnitude of Venezuelan migration, with five million having left the South American nation, to the displacement towards Europe caused by the war in Syria. The Dominican Republic hosts around 114,000 Venezuelans, most of whom are in an irregular situation, with only 14,000 holding regular study and work permits and 600 being refugees or married to Dominicans. The majority entered between 2014 and 2020 and now have expired tourist statuses and passports. The normalization plan aims to address the majority of these Venezuelan migrants.

The Dominican government relied heavily on borrowing to finance over 60% of its emergency spending during the COVID-19 pandemic in 2020. The Ministry of Finance reported that out of the total 138,193.4 million pesos spent, 74,588 million pesos were sourced from external debt bonds, and 8,199 million pesos from external budgetary assistance. The pandemic led to record levels of public debt, with sovereign bonds issued internationally amounting to 7.3 billion dollars. A significant portion of the funds was allocated to social assistance programs for workers affected by economic shutdowns, with 125,447.1 million pesos directed towards three major subsidy programs: FASE, Quédate en Casa, and Pa’ Ti.

The Dominican government plans to secure a loan from international banks to finance the construction of a perimeter fence along the Dominican-Haitian border, as outlined in the 2021 General State Budget Law. The project, part of the Border and Citizen Security Project, requires up to $224 million, with an additional guarantee of $15.7 million, to be executed by the Ministry of Defense. The loan will be negotiated with international banks at market-compatible interest rates and a minimum term of seven years. Administrative Minister of the Presidency, José Ignacio Paliza, confirmed that the construction is well-planned and budgeted, incorporating physical and technological means to control border illegalities.

Venezuelan governments under Hugo Chávez and Nicolás Maduro provided over $28 billion in oil-backed loans to 14 Central American and Caribbean countries through agreements like Petrocaribe. These loans were often repaid with overvalued goods, primarily food, resulting in a loss of millions for Venezuela. The #Petrofraude investigation revealed that Venezuela accepted overpriced goods, such as Nicaraguan coffee and Guyanese rice, leading to potential excess costs of $245 million. Internal audits by Petróleos de Venezuela (Pdvsa) showed a lack of control and proper protocols, with missing invoices and quality reports. Discrepancies in reported volumes and values of imported goods were found, and key figures involved in the oil-for-food exchanges have been investigated or sanctioned by the US Treasury for corruption. Lucrative transactions favored companies linked to government figures in the Dominican Republic and Suriname, among others. The misuse of funds intended for social policies in the region led to speculative real estate patterns in El Salvador and the creation of bureaucratic company networks in Nicaragua. The investigation also highlighted the diplomatic influence Venezuela gained through these oil agreements, with beneficiary countries often aligning with Venezuelan interests in international bodies like the OEA and the UN.