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  • Publication | 2023

Dominican Republic Country Economic Memorandum - Sustaining Economic Growth

Global Food and Nutrition Security

The Dominican Republic’s growth model has led to exceptional economic expansion, far exceeding the LAC average over the past two decades, but it is reaching its limits due to slow productivity growth. While impressive, the Dominican Republic’s growth performance has been based on factor accumulation rather than productivity growth and associated with regional disparities and wage stagnation. Productivity growth has been hindered by policy distortions, climate-related natural disasters as well as inadequate human capital. A new round of structural reforms will boost productivity growth, including by: (i) unleashing its human capital potential; (ii) fomenting competitive markets; (iii) revamping the innovation strategy; (iv) reducing public expenditure inefficiencies; and (v) strengthening resilience against external shocks and climate change.