The international rating Moody’s published this Monday its annual credit analysis report on the Dominican Republic in which the sovereign rating of Ba3 and its stable outlook, which was ratified last April.
The firm emphasized that growth royal of the economy The Dominican Republic was 12.3% in 2021, a level that was “significantly above regional and risk rating peers,” according to the annual credit analysis released.
Economy will grow about 5%
The agency estimated that in the medium term the growth economic growth will be around 5% on average and he also said that he hopes that the risks of the Government’s balance of payments and liquidity will remain controlled, says a press release.
Moody’s highlighted that the Dominican Republic demonstrated flexibility in access to financing that was not interrupted during the COVID-19 pandemic.
In addition, he stressed that this favorable access is maintained compared to its regional peers, even in the current situation that occurs in international markets due to the conflict between Russia and Ukraine.
He mentioned that the Dominican government managed to reduce the debt ratio as a percentage of gross domestic product (GDP), which went from 58% in 2020 to 51% at the end of 2021, showing an improvement above the level recorded by the average of Ba-rated peer countries.
Expectations
Moody’s He said he expects that by 2022 the debt will decrease to around 49% of GDP, basing his predictions on the fiscal deficit remaining below debt stabilization levels in the coming years.
The firm’s rating is based on economic, fiscal, institutional and governance soundness, as well as the country’s resilience to risk events. Based on your expectations, stable credit is in line with the balance of risks that sustains our sovereign debt.
The rating agency, which recognized the importance of the tourism sector in the economy local, highlighted that the Dominican Republic is less dependent on this activity when compared to other similar countries in the region or dependent on tourism, and that this prevented a more marked economic contraction in 2020, while serving as support for a rapid recovery in 2021.
“The World Travel and Tourism Council estimates that the total contribution of the sector to production is 16% of GDP, below 25% of the average contribution of GDP that the sector has for its Caribbean peers,” the document indicates. .
