The Dominican Republic would appear as the sixth country in Latin America with the public debt highest and the thirteenth in the entire Caribbean region at the end of 2025, according to the most recent data published by the International Monetary Fund (IMF), which estimates that this outlook could improve slightly for the local economy in 2026.
According to the “Tax monitor“, a study by the organization that analyzes the behavior of public finances of all countries worldwide, the total public debt Dominican Republic would be around 60.0% of the gross domestic product (GDP) at the end of this year.
When compared to other emerging economies and middle income in Latin America, the country falls behind nations like Uruguay (66.6%), Argentina (78.8%) or El Salvador (87.6%). This year, Bolivia tops the list in the region, with a public debt of 93.7% with respect to its GDP.
On the contrary, Guatemala is the country that maintains the debt-to-GDP ratio healthiest in the entire region, representing just 27.0%. Peru (32.1%), Paraguay (41.7%) and Chile (42.7%) are three other countries whose debt remains below 50.0% in relation to GDP.
In the Caribbean
Although its debt levels are high, the Dominican Republic maintains a more favorable position when compared to its Caribbean neighbors: this year it became the second country least indebted in this region, only above Jamaicawhose debt is equivalent to 59.2% of GDP.
The level of commitment assumed by the Caribbean islands covers almost the size of their economies: this is the case of Barbadosthe most indebted economy in the entire region, representing 99.8% of its GDP, followed by Dominica (95.7%), Saint Vincent and the Grenadines (94%) and Saint Lucia (77%).
Outlook for 2026
For next year, an upward trend in debt levels is projected in most Latin American countries. Brazil would lead this increase, with a public debt which will represent 95.0% of its GDP.
In this way, it is expected that the Dominican Republic descend from sixth to tenth placebeing one of the economies whose public debt It will stand at 58.9% of its GDP, after a decrease of 1.1 percentage points, maintaining with this percentage the same position within the Caribbean region.
