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The ABA projects favorable economic conditions in 2026

The ABA projects favorable economic conditions in 2026

The Association of Multiple Banks of the Dominican Republic (ABA) expressed a optimistic view on the recent evolution of the country economy and the prospects for 2026, when weighing the solidity of the macroeconomic fundamentals, the response capacity of the monetary policy and the active role of banking sector in promoting productive activity.

The ABA indicated that, in the middle of a complex international environmentit has been observed a gradual improvement of global financial conditions, driven by the beginning and continuity of the process of flexibility of the monetary policy of the United States Federal Reserve, which has contributed to reducing external pressures on emerging economies.

  • He assessed that, at the local level, this more favorable external environment, combined with inflationary expectations consistently within the target range, gave the Dominican Central Bank the necessary space to move towards a more flexible stance, which was reflected in cuts to the monetary policy rate, accompanied by a liquidity facility program for 81 billion pesos.

The ABA noted that these measures have had a direct impact on the private credit dynamics in national currency, whose annual growth accelerated from 6.8% in March to 7.7% in November, with a expansion projection between 9% and 11% by the end of 2025.

He pointed out that this recovery was mainly driven by the commercial credit to companies and financing for the acquisition and remodeling of homes, key sectors for the job creation and the economic growth.

The union explained that the favorable credit evolutionalong with the increase in public investment announced by the Ministry of Finance, motivated a upward revision of growth projections for 2026.

In this sense, both the Central Bank as international organizations and market agents estimate that the economy could resume growth rates in the range of 4.0% to 4.5% this year.

Healthy indicators

Likewise, he stressed that the appropriate risk management has allowed the banking sector exhibit healthy indicators liquidity, asset quality, capital solvency and profitability, positioning itself among the financial systems most consolidated in Latin America.

Finally, the association reaffirmed the banking commitment multiple goal of continuing to accompany the economic development of the country, channeling financing to the productive sectors and households, and contributing to the construction of an environment of trust, stability and sustainable growth.

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