Why consider investment opportunities in the Dominican Republic? The most stable nation in Latin America
Dominican Republic: An Exceptional Case of Stability and Confidence in an Alert Latin America
In a regional context marked by the erosion of institutional trust, widespread economic fragility, and growing political polarization, the Dominican Republic has emerged as an exception in Latin America. This is stated in the Latin America Country Risk Index and Analysis 2025, prepared by the Adam Smith Center for Economic Freedom at Florida International University (FIU), one of the most rigorous comparative studies on political, economic, social, and international risk in the region.
The report, which evaluates twelve Latin American countries, places the Dominican Republic among the economies with the lowest structural risk for foreign investment and the highest expectations for economic growth. It also identifies the Dominican Republic as the country with the highest favorable recommendation for investment, with 76% of the experts consulted recommending investment in the country, representing a significant advantage compared to other countries in the region.
Stability in a Region Under Pressure
The study identifies the main investment risks in the region as the expansion of organized crime, the deterioration of public security, political polarization, and a generalized crisis of trust in political parties, congresses, and other key institutions. Institutional credibility was measured using the new “Trust-O-Meter” developed by the report, which places the region, on average, at an “alert” level.
Within this context, the Dominican Republic stands apart from other countries in the region. According to the report’s findings, the country records the lowest levels of political, economic, social, and international risk. This is largely due to the absence of internal confrontations that could compromise decision-making processes, the execution and respect of democratic processes, and overall governmental stability. The country’s political stability clearly contrasts with the volatile scenarios currently affecting other major economies in the region.
Macroeconomic Strength and Private Sector Confidence
As noted above, the performance of the Dominican economy is one of the key reasons the country is currently favorably positioned for investment. According to the report, the Dominican Republic ranks among the nations with the lowest economic risk, supported by consistent macroeconomic policies and a positive perception from the private sector regarding economic management.
While high levels of unemployment, inflation, and informality persist in most Latin American countries—factors that the study directly links to political and social instability—experts project a favorable medium-term growth outlook for the Dominican Republic. This expectation is supported by the continuity of policies aimed at industrial development, the attraction of foreign direct investment at the state level, trade openness, and the strengthening of bilateral relations with key partners.
Contained Social Risk in a Turbulent Hemisphere
One of the study’s most significant findings is the relevance of social risk in Latin America. The advance of organized crime and high levels of criminality across the region represent one of the main challenges, directly impacting investment, business operating costs, and legal certainty—an essential factor for formal economic activity.
In this area, the Dominican Republic shows social risk levels below the regional average, remaining relatively insulated from the more severe deterioration observed in other countries. Although none of the countries analyzed is completely immune to regional security challenges, the report acknowledges that, unlike others, the Dominican environment offers more favorable conditions for business activity, tourism, and productive investment.
Low International Risk and Strategic Positioning
The analysis of international risk further reinforces this positive perception. In a global environment marked by geopolitical tensions, the Dominican Republic ranks among the countries with the lowest international risk index, alongside Peru and Argentina. This perception stems from the country’s stable foreign relations, timely strategic alignment with key partners, and a foreign policy focused on strengthening cooperation across the continent.
Regional Leadership in Investment Recommendation
The study’s most compelling conclusion is the direct recommendation for investment. While countries such as Paraguay and Argentina received positive evaluations, the Dominican Republic led the regional ranking with a clear advantage.
For investors and companies, the report’s message is clear: in Latin America, the Dominican Republic offers a resilient profile against external pressures and internal stability that contributes to its consolidation as a preferred investment destination.
Final Reflections
The challenge for the Dominican Republic will be to consolidate the progress achieved in areas related to foreign investment, continue strengthening transparency, democratic institutions, and legal certainty, and remain adaptable to an increasingly competitive international environment.
Ultimately, in a continent facing growing warning signs and increasingly fragile political and economic stability, the Dominican Republic stands out not only for its recent performance, but also for the confidence it inspires in the future—solidifying its position as one of the most solid and attractive investment destinations in Latin America.