The energy sector leads the growth of foreign investment in the Dominican Republic during the first quarter of this year, with amounts that could exceed US$1 billion by the end of 2023.
According to Central Bank data on the performance of the economy, in the first quarter of 2023 foreign direct investment in energy amounted to US$272.5 million, which represents a growth of 82.15% with respect to the first quarter of 2022. This is the highest amount received in a first quarter since 2010.
The data analyzed reveals that if this trend continues, the energy sector could be exceeding US$1 billion by 2023, as there are currently several projects in the early stages of construction of renewable and conventional thermal plants.
The strong attraction of energy investments in the country was also highlighted by the United Nations through the United Nations Conference on Trade and Development (UNCTAD) World Investment Report 2023.
The report cites the Dominican Republic as an example of energy transition with investment promotion in renewables and institutional changes that add transparency and generate confidence.
“This growth reflects the confidence of foreign investors in the current government management and the electricity sector, since in the period 2021-2022, foreign direct investment in energy amounted to USD 1,031.60 million, an amount higher than that accumulated in the period 2016-2020, which amounted to USD 965.30 million. In just 2 years, the amount received in foreign direct investment in the 2016-2020 quadrennium has been surpassed,” the report states.
It adds that foreign direct investment received by the energy sector in the first quarter of 2023 ranked first among the recipient sectors, followed by the tourism sector and the trade and industry sector.Investment flows accounted for 25.47 % of the total received in the first quarter of 2023, followed by tourism with 25.42 % and trade and industry with 17.09 %.