The credit agency Standard and Poor’s (S&P Global) reaffirmed the risk rating of Dominican Republic in “BB, with a stable outlook”, highlighting the regional leadership of the dominican economy in terms of growth.
He Treasury released the information this Tuesday, which constitutes a boost to the monetary policy of the Dominican Government.
“We expect a growth of GDP (Gross Domestic Product) of 5% annually in the next four years, maintaining Dominican Republic as one of the fastest growing economies in Latin America and the Caribbean,” said S&P Global in its report, according to the Treasury.
The agency highlighted that the country’s economic expansion has raised the GDP per capita to approximately $11,500 in 2024, nearly doubling from $6,400 in 2014. This rapid growth, according to S&P, mitigates the risks associated with fiscal deficits moderate and limited budgetary flexibility.
The report also highlights that the pro-market policies implemented by the Government have sustained a level of investment high, estimated at 32% of the GDP in 2024. Additionally, the tourism continues to consolidate itself as a key sector for growth, with a projection of 11.5 million visitors in 2024, which would represent an increase of 12% compared to 2023.
Finally, S&P highlighted the progress in structural reformssuch as the approval of the Fiscal Responsibility Lawthe reorganization of the public sector to optimize expenses, and the constitutional and labor reforms, which strengthen the economic and fiscal sustainability of the country.
The rating agency maintained its assessment of 2023, after the economic recovery that the country registered after the pandemic caused by the Covid-19.
On November 20, the credit agency Fitch Ratings confirmed the risk rating of the Dominican Republic at BB-, with a positive outlook, highlighting the strength of its economy, the progress in governance and the potential to implement reforms that strengthen the country’s macroeconomic and institutional framework.
