Dominican Republic: 2025 Article IV Consultation-Press Release; Staff Report and Statement by the Executive Director for Dominican Republic

International Monetary Fund

No 2025/305, IMF Staff Country Reports from International Monetary Fund

Abstract: The 2025 Article IV Consultation discusses that the Dominican Republic has demonstrated resilience amid global economic uncertainty and tighter financial conditions. Real gross domestic product growth is projected at 2.5 percent in 2025, with inflation firmly within the Central Bank’s target range of 4 percent ± 1pp. The Central Bank continues its monetary easing cycle, reducing the policy rate to 5.25 percent. Fiscal policy remains prudent, anchored by the Fiscal Responsibility Law, with a deficit of 3.5 percent of gross domestic product expected in 2025, narrowing to 3.2 percent in 2026. Public debt is sustainable and on a downward trajectory, with a debt anchor of 40 percent by 2035. The financial sector is sound, with high capitalization and profitability, while systemic risks are contained. Structural reforms under the META RD 2036 plan aim to double gross domestic product by 2036, focusing on economic diversification, social inclusion, and resilience. The government is advancing electricity sector reforms, labor code modernization, and climate change mitigation, while pursuing Organisation for Economic Co-operation and Development membership to enhance governance and attract foreign investment.

Keywords: exchange rate arrangement; fund holding; inflation expectation; fund relation; headline inflation; Public sector; Liquidity; Exchange rates; Caribbean; Central America; Global; South America (search for similar items in EconPapers)
Pages: 116
Date: 2025-11-19
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