Dominican Republic: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Dominican Republic

International Monetary Fund

No 2023/225, IMF Staff Country Reports from International Monetary Fund

Abstract: The 2023 Article IV Consultation highlights that the Dominican Republic’s economy has been one of the most dynamic and resilient in the Western Hemisphere over the last two decades, displaying an impressive recovery from the pandemic, supported by the authorities’ sound policies as well as positive global spillovers. Supported by sound policies and fundamentals, the economic outlook is relatively positive, albeit subject to high uncertainty, mostly due to global risks. Against a backdrop of inflation rapidly declining to target, a growth slowdown amid high uncertainty and near-term downside risks, discussions focused on the required policy mix to maintain macroeconomic and financial stability. The near-term policy priority should remain focused toward returning inflation to target and maintaining inflation expectations firmly anchored. Financial supervision should remain vigilant amid tight global financial conditions and global financial stability concerns. Medium-term policies should continue to enhance the credibility of policy frameworks, make further improvements to the business climate, governance, and social safety nets, and persevere with electricity sector reforms. These policies can foster equitable growth and reinforce hard-earned economic and financial stability.

Keywords: inflation expectation; liability positions vis-à-vis nonresident; core inflation; return on equity; near-term policy priority; CPI basket; market expectation; Inflation; Public sector; Electricity; Global; Central America (search for similar items in EconPapers)
Pages: 117
Date: 2023-06-22
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