The Central Bank (BCRD) reported that in the first quarter of 2023 the remittances received reached a figure of around US$3,300.00 million, exhibiting a 2.7% growth compared to the same period of the previous year.
In particular, April registered a value of remittances of US$811.0 million, with an increase of 0.1% compared to April 2022. These flows mark the fourth month with a consecutive increase so far this year, extending the increase observed since the beginning of the last quarter of 2022.
The BCRD explains that the economic performance of the United States was one of the main factors that influenced the behavior of remittances, since 85.2% of the formal flows in April came from that country, some US$608.2 million. It should be noted that during the first quarter of 2023 the economy grew by 1.1%, according to its Office of Economic Analysis, and unemployment in April 2023 stood at 3.4%, equaling the lowest level in the last 50 years.
Additionally, the non-manufacturing Purchasing Managers’ Index (PMI) of the Institute for Supply and Management (ISM) registered a value of 51.9 in April, indicating the expansion of the service sector, where most of the work is done. of the Dominican diaspora.
The BCRD also highlights the receipt of remittances through formal channels from other countries in April, such as Spain, for a value of US$41.9 million, 5.9% of the total, this being the second country in terms of total residents of the Dominican diaspora in the outside is concerned; as well as Haiti and Italy, with 0.8% and 0.8% of the flows received, respectively. The rest of the receipt of remittances is divided between countries such as Switzerland, Canada and Panama, among others.
Proportion
Regarding the distribution of remittances received by provinces during April, the BCRD indicates that the National District obtained the highest proportion, 35.1%, followed by the provinces of Santiago and Santo Domingo, with 14.0% and 8.6%, respectively. This indicates that more than half (57.7%) of the remittances are received in the metropolitan areas of the country.
BCRD source.
After analyzing the recent evolution of the external sector, the perspectives of the BCRD contemplate that during 2023 important flows of remittances, exports, income from tourism and direct foreign investment will continue. These foreign currency inflows will continue to affect the relative stability of the exchange rate that is currently observed, in such a way that at the end of April the national currency appreciated by 3.2% compared to the end of 2022.
The institution highlights that the greater flows of external income also allowed the accumulation of international reserves, which as of May 16 exceeded US6.3 billion. This level reached represented 13.3% of GDP and about six months of imports, above the thresholds recommended by international organizations.
countries.
The Central Bank indicates that it reaffirms its commitment to monitoring the current economic environment to continue taking the necessary measures to counteract the impact on the Dominican economy of the challenging prevailing international scenario, in order to guarantee price and exchange market stability.
