Abinader’s re-election signals a continuation of policies aimed at economic growth and stability, enhancing governability and attracting long-term investments
In the context of reinforced governance and consistent economic policies, businesses have the opportunity to capitalize on the Dominican Republic’s sustained growth to expand operations and increase profitability in a less volatile environment.
Overview
On May 19, the current President of the Dominican Republic, Luis Abinader of the ‘Partido Revolucionario Moderno’ (PRM), was re-elected with almost 60% of the votes, eliminating the need for a second round. Abinader’s considerable popularity, reflected in his 70% approval rating, played a crucial role in this victory, reaffirming his mandate until 2028. This re-election allows him to continue his government’s agenda, which has focused on investment, tourism, and now security. During his campaign, Abinader pledged to uphold the policies that facilitated a swift recovery from the pandemic and strengthened the island’s economy. His emphasis on these successes provided a competitive edge over former President Leonel Fernández, who, despite trailing in second place in the polls, secured just 28.84% of the votes.
Since his election in 2020, Abinader has committed to fighting corruption, a promise that resonated strongly with Dominican voters and helped consolidate the PRM as one of the main forces in the country. His anti-corruption policies, coupled with robust economic growth, have been the main strengths of his government, sustaining his extraordinary popularity. With a projected growth of 4.3% for 2024 and 4.5% for 2025, the Dominican Republic not only surpasses the regional average but also shows prospects of maintaining this momentum in the next decade. Additionally, tourism, a vital sector for the Dominican economy, has boomed under Abinader’s management. This success in tourism complements the boost in free trade zones, which have been crucial to increasing exports and foreign investment, as well as driving employment.
Our View
Despite this period of stability and economic growth, the elections reflected citizens’ concerns about migration from Haiti and security. To address these concerns, the president promoted policies such as the construction of a border wall with Haiti and increased deportations, controversial measures that, nonetheless, have strengthened his popularity among certain sectors of the electorate. Furthermore, Abinader has proposed constitutional reforms to strengthen key institutions like the Public Ministry, which could have complex repercussions, especially in sectors such as construction and agriculture that rely on low-cost labor from Haiti.
As he has done with policies on migration, security, and anti-corruption, President Abinader has effectively addressed the concerns of citizens and adapted to their demands, which has helped maintain his relevance and high popularity. Consequently, his re-election suggests a continuation of policies that have contributed to stability and economic growth. Examples of these policies include public-private partnership construction initiatives and incentives for the energy and tourism sectors, which are expected to keep driving the economy forward. Abinader’s administration has demonstrated minimal political and economic uncertainty, making it particularly valuable in the region, providing an environment conducive to long-term planning and investment. Moreover, Abinader’s success in the municipal elections preceding his presidential re-election demonstrates a consolidation of power and governance that could translate into greater effectiveness in implementing favorable economic policies.
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