The Central Bank of the Dominican Republic's National Survey of Financial Inclusion found that 53.69% of Dominicans do not have a bank account or any financial credits, while 46.31% mostly have savings accounts and to a lesser extent, loans and other banking instruments. The survey, covering 3,744 households nationwide, was conducted in December 2019 and does not account for the impact of the COVID-19 crisis. Reasons for not having a bank account included not needing one, insufficient income, or the high cost of financial services. The survey also noted that government subsidies helped increase the level of banking among citizens, and financial inclusion was higher among those with higher incomes.

Authorities will soon initiate a pilot plan to temporarily ban heavy cargo transportation from entering the National District from 6:00 AM to 8:00 PM. Hugo Beras, the Secretary-General of the National District's City Hall, did not specify the start date or duration of the measure. The plan involves the National District's City Hall, the Ministry of Public Works, Intrant, transporters, and businessmen, with technical support from the Inter-American Development Bank. Beras mentioned that only trucks with special authorization would be allowed entry. The measure is expected to affect 3,000 to 4,000 heavy cargo vehicles that currently transit through the capital daily.

As of June, the Dominican Republic's consolidated public debt reached a historic high of $59.648 billion, representing 68% of the GDP. The debt increased by nearly $13 billion over the past twelve months, with a 25% rise since the declaration of the COVID-19 pandemic in March 2020. A significant portion of emergency subsidies for workers affected by the virus was financed through external debt, with 70% of the $144.869 billion in social aid since the pandemic's onset sourced from external debt, including funds from the IMF and the World Bank. The external debt stood at $33.251 billion, while local market commitments were $26.397 billion. The non-financial public sector (SPNF) was the primary source of debt, with the central government and other executive branches issuing $47.406 billion in debt, a 22.9% increase from the previous year. The central government paid $2.627 billion for debt service in the first half of the year.

Since the reopening of borders in July 2020, the tourist landscape in the Dominican Republic has changed, with a shift in the demographic profile of visitors due to the COVID-19 pandemic. The typical visitor remains predominantly from the United States, but there has been an increase in tourists from Latin American countries. The Central Bank of the Dominican Republic's data shows a change in visitor origins, with a decrease in European tourists and an increase from other regions. Tourists are spending less but staying longer, with an average daily expenditure decrease of 3.8% compared to 2019, and an increase in average stay from 8.12 to 9.28 nights. There has also been a notable increase in younger tourists and a shift in travel purpose, with more visitors coming to see friends or partners rather than purely for vacation.

The Deputy Minister of Tourism, Jacqueline Mora, announced that the delayed beach regeneration plan will start in 2022 after technical analyses and a new tender process. The original project from Danilo Medina's administration was rushed and lacked a long-term vision. The Inter-American Development Bank is involved in the new survey, and the plan includes the regeneration of 16 beaches with a 10-year outlook. Mora also highlighted the Dominican tourism sector's strong recovery compared to global levels, and the opening to new markets such as Poland, Romania, and Ukraine. Paola Rainieri, former president of Asonahores, expressed excellent expectations for the upcoming high tourist season.

On July 16, 2021, the Dominican Republic's Ministry of Labor implemented the first phase of the minimum wage increase as per resolution 01/2021. Large companies' base salaries are now 20,000 pesos per month, medium companies at 18,500 pesos, small companies at 12,400 pesos, and micro companies at 11,500 pesos. Security guards are to earn 16,750 pesos. The second increase is scheduled for January 1, 2022, with further wage adjustments for employees. Agricultural workers will earn 500 pesos per day for 10-hour workdays, with proportional adjustments based on hours worked, with no further adjustments in January.

The Dominican Institute of Telecommunications (Indotel) has sanctioned Trilogy Dominicana (Viva) for the illegal use of the radioelectric spectrum, detected in June 2017. Indotel imposed fines totaling RD$369.11 million for serious and very serious sanctions, as well as for the counterpayment of the rights of exclusive exploitation of the illegally used frequencies. The resolution 064-2021 orders Viva to cease using certain frequency segments and to refrain from marketing services through those frequencies. The sanction concludes a long process of demands, claims, delays, absence of rulings, and the prescription of the process. Viva has categorically rejected the resolution and announced it will take legal and administrative actions against it.

Héctor Valdez Albizu, governor of the Central Bank of the Dominican Republic, reported that the economy experienced a 21.2% growth at the end of May, leading to an accumulated growth of 13.4% from January to May 2021. He highlighted that the growth was robust and that the economy is on track to grow above 8% for the year. The sectors with the highest growth in May included construction at 54%, free zones at 30.1%, mining at 16.2%, local manufacturing at 15.9%, and transportation at 14.3%.

Limber Cruz, the Dominican Republic's Minister of Agriculture, acknowledges consumer discomfort due to price increases but emphasizes that scarcity is a worse scenario, which the country has avoided as agricultural production continues despite the crisis. The government has intervened by subsidizing some agricultural producers to address supply issues, as seen with onions and carrots. Cruz highlights that while international commodity prices have risen, local agricultural production has not been significantly affected, and the government has managed to control food prices. The government has also provided financial support to the sector, including 5 billion pesos at zero interest rate. Additionally, the government has initiated corn and sorghum planting to mitigate the impact of high raw material costs on food production.

The Dominican Republic's Ministry of Tourism has extended a ban on the sale of alcoholic beverages on beaches and during tourist excursions for at least two months, following nearly a hundred deaths caused by methanol-adulterated drinks. The temporary and preventive measure, which could be extended if necessary, includes sanctions for non-compliance. Albania Martínez, president of the Association of Aquatic Companies of La Altagracia province, opposed the ban and suggested providing a list of authorized liquor companies to mitigate the impact on tourism businesses, which have already been heavily affected by the COVID-19 crisis. The government has declared the issue of adulterated alcohol a national security matter and has increased surveillance and control over the import and commercialization of methanol.

Biviana Riveiro Disla, the executive director of ProDominicana, stated that the Dominican government is focused on resolving bureaucratic issues that hinder new investments in the country. The government aims to create a one-stop shop for investments in the very short term and is working on policies and measures to reduce the time and complexity of doing business. This initiative is part of a zero-bureaucracy policy demanded by President Luis Abinader, emphasizing transparency and governmental efficiency. A campaign titled 'Invest in the Dominican Republic' will be launched this week.

The COVID-19 pandemic led to a significant drop in hourly wage income for workers in sectors such as hotels, bars, restaurants, banking, and transportation in the Dominican Republic, with only state-associated sectors avoiding this decline in 2020. According to official data from the Central Bank, the average hourly income in the country fell by 8.3% from 113.8 pesos per hour at the end of 2019 to 104.3 pesos per hour in the fourth quarter of 2020. The banking, insurance, and financial intermediation sector saw the largest decrease, with a 41.2% drop in the same period. The pandemic also increased the total informality rate from 54.8% to 56.8% by the end of 2020, with about 2.5 million people working in the informal economy. Unemployment reached 7.4% in 2020, with the eastern region of the country experiencing the highest job loss, reaching 9.1% unemployment in the fourth quarter.

Sigmund Freund, the director general of Public-Private Partnerships, stated that the Dominican government's specific proposal in negotiations with the highway concessionaire to Samaná is to eliminate the shadow toll, which is costly to the national budget. Annually, the government pays the concessionaire between $60 and $80 million, which is six times the cost of the highway's construction. The 30-year concession contract, signed during Hipólito Mejía's presidency and altered during Leonel Fernández's term, placed all financial risk on the state. The government has paid 26,835 million pesos for the shadow toll so far.

The Dominican Republic's state subsidies for fuels will amount to 16,017 million pesos this year, equivalent to 0.33% of the GDP. President Luis Abinader indicated the government's intention to reduce this burden by revising the sectoral aid scheme granted through tax exemptions. The majority of these subsidies are allocated to electricity-generating companies, estimated at 11,596.4 million pesos for the year. Compared to the previous year, the subsidy has been reduced by 10,803.1 million pesos, attributed to the impact of COVID-19 on manufacturing production and service company activities. The Central Bank reported a significant drop in energy and water consumption in the industrial and commercial sectors in 2020 due to the pandemic.

In the Dominican Republic, over half of gasoline prices consist of government taxes and distribution companies' margins. Taxes account for 35.3 to 36.7% of gasoline prices, while diesel and fuel oil are taxed around 25%, and LPG has the lowest tax at 11%. Distribution margins, set by the Ministry of Industry, Commerce and Mipymes, add another 17 to 20%. President Luis Abinader has proposed legal reforms to review fuel pricing structures. The recent government resolution led to significant increases in fuel prices, with premium gasoline rising by 11.5% since the beginning of the year.

The first shipment of COVID-19 vaccines, Covishield, manufactured by the Serum Institute of India under AstraZeneca's license, is arriving in the Dominican Republic tonight on Iberia flight IB6501. The vaccines were transported from Bombay to London by British Airways and then to Madrid, finally reaching Santo Domingo. This marks the first vaccine shipment Iberia has transported to Latin America, weighing 110 kilograms. IAG Cargo, responsible for cargo commercialization for IAG airlines, has a specialized product for pharmaceutical transport, 'Constant Climate', ensuring secure vaccine delivery. The WHO has approved AstraZeneca's vaccine for emergency use, and President Abinader indicated that more vaccines are expected before the end of the month.

The Caribbean's tourism and flight reactivation is slow, leading to a recovery pace much lower than expected. The IMF has lowered its economic growth projection for the region from an initial 4% to 2.4%, due to the pandemic's extended impact stemming from the area's reliance on tourism. While Latin America is expected to grow more than previously estimated, reaching 4.1%, the Caribbean's recovery contrasts with this trend. IMF Western Hemisphere Director Alejandro Werner emphasized the importance of vaccination in reducing infections, deaths, and hospital use to maintain growth forecasts. He also highlighted the need for government support through subsidies and medium-term programs to ensure fiscal sustainability. The IMF has provided about $1 billion to the Caribbean in 2020 and is open to offering more support in 2021.

Josué Gastelbondo Amaya, the representative of the International Organization for Migration in the Dominican Republic, compared the magnitude of Venezuelan migration, with five million having left the South American nation, to the displacement towards Europe caused by the war in Syria. The Dominican Republic hosts around 114,000 Venezuelans, most of whom are in an irregular situation, with only 14,000 holding regular study and work permits and 600 being refugees or married to Dominicans. The majority entered between 2014 and 2020 and now have expired tourist statuses and passports. The normalization plan aims to address the majority of these Venezuelan migrants.

Venezuelan governments under Hugo Chávez and Nicolás Maduro provided over $28 billion in oil-backed loans to 14 Central American and Caribbean countries through agreements like Petrocaribe. These loans were often repaid with overvalued goods, primarily food, resulting in a loss of millions for Venezuela. The #Petrofraude investigation revealed that Venezuela accepted overpriced goods, such as Nicaraguan coffee and Guyanese rice, leading to potential excess costs of $245 million. Internal audits by Petróleos de Venezuela (Pdvsa) showed a lack of control and proper protocols, with missing invoices and quality reports. Discrepancies in reported volumes and values of imported goods were found, and key figures involved in the oil-for-food exchanges have been investigated or sanctioned by the US Treasury for corruption. Lucrative transactions favored companies linked to government figures in the Dominican Republic and Suriname, among others. The misuse of funds intended for social policies in the region led to speculative real estate patterns in El Salvador and the creation of bureaucratic company networks in Nicaragua. The investigation also highlighted the diplomatic influence Venezuela gained through these oil agreements, with beneficiary countries often aligning with Venezuelan interests in international bodies like the OEA and the UN.