He International Monetary Fund (IMP) concluded his Consultation mission of article IV to the Dominican Republic, noting that the country has had a Outstanding economic performance In the last two decades, supported by solid policies, institutional stability and a favorable environment to investment. This framework allowed one of the fastest income convergence rates in Latin America and the Caribbean.
However, the IMP warned that the International situation of high uncertainty and more restrictive financing conditions has moderated the Economic activity In 2025. Even so, the Central Bank Measures and of the government, together with the strength of macroeconomic foundations, maintain a positive perspective.
The fund projects that the gross domestic product about 3 % will grow this year, with a recovery in the second half promoted by the Fiscal stimulus and monetary.
In the monetary level, the agency greeted the largest Dominican weight flexibility and the consistency of inflation goals regimethat has maintained the inflation around the goal of 4 %.
Recommended Strengthen transmission of monetary policy, accumulate more International reserves and design one Comprehensive strategy for the recapitalization of the monetary and financial institution.
Fiscal reform
Look for consensus with the different sectors about a Tax Reformresume the Electric pact and reduce subsidies generalized were part of the recommendations made by the organism’s mission to the Dominican authorities.
The delegation recommended that the Government prepare a Income strategy in the medium term, in consultation with the Private sector and the social, which could help generate consensus around a Tax Reform that allows to meet the objectives of Investment in infrastructureeducation and health.
“It is necessary to redouble efforts to strengthen efficiency, both in terms of expenses and income, to create Fiscal space For essential investments in infrastructure and human capital, “he warned.
Pointed out about the importance of reduce subsidies generalized and increase Expenditure efficiencyreinforcing the management and resilience of public investment, the prudent use of public-private alliances For strategic infrastructure projects and firmly applying the contracting law, recently adopted.
Electric sector
In electric matters, he called to resume the implementation of the pact, adding that it will be essential to limit the Fiscal risks and guarantee that the sector becomes a motor of growth.
“Gradual adjustments to technical rates and a better targeting of Subsidiestogether with the necessary Investments in Transmission and DistributionThey are crucial to ensure financial sustainability of the sector, “the document said.
Looking ahead, it will be essential to gradually reduce the Subsidies To electricity, providing support for the most vulnerable To safeguard the Social spending and capital, advised the IMP.
Finally, the mission of IMP recognized the progress of the country in the Quality of National Statistics and encouraged the adoption of International standards of Data dissemination.
The delegation of the multilateral organism that was visiting the country, held meetings with the Governor of the Central BankHéctor Valdez Albizu; he Minister of Finance and economy, Magín Díaz and representatives of the Private sector and civil society, as well as with other officials from various areas.
The representation of the fund was headed by Ricardo LlaudesChief of Mission for the Dominican Republic, and composed of Geraldo Peraza, Nate Arnold, Pamela Madrid-Angers and Manuel Rosales Torres.
The fund said that the country needs ambitious structural reforms to generate resilient growth and become a high -income economy, as expected in the Meta2036 plan.
“Given the exhibition of the Dominican Republic to natural disasters, a regulatory framework of reinforced climatic policy, better disaster risk management and a deeper integration of climatic considerations in fiscal policies can strengthen economic resilience,” said the body.
And he added that credit markets and financial inclusion must be deepened, ensure the flexibility of the labor market, increasing at the same time human capital and improving business regulation, which should generate greater growth.
