The governor of Central Bank of the Dominican Republic (BCRD), Hector Valdez Albizuprojected that the dominican economy will gradually resume a growth rate close to its potential in 2026, with an expected expansion between 4.0 and 5.0%, in an environment in which inflation would continue within the target range of 4.0% ± 1.0%.
The forecast was made during his presentation at the Meeting of Central America, Panama and the Dominican Republic (Capdr), held within the framework of the Annual Meetings of the International Monetary Fund (IMF) and the World Bank (BM), in Washington DC
Until now, the expected growth At the end of 2025 it remains at 3.0%, an estimate shared by both international organizations.
Monetary policy
According to a note from the Central Bank, Valdez Albizu explained that, given the challenging international context, the country is executing a coordinated program between the monetary policy and fiscal to energize the domestic demand.
In that sense, he recalled that the Central Bank has reduced the rate of monetary policy and implemented a liquidity provision program aimed at channeling financing to the productive sectors.
The governor highlighted that the solid macroeconomic fundamentals of the country have contributed to improvements in debt ratings and country risk indicators, which today are at historic lows.
He added that the favorable business climatetogether with political and social stability, has sustained a foreign direct investment more than $4.8 billion this year, enough to cover the projected current account deficit of 2.5% of GDP.
Challenges of economies
Valdez Albizu also participated in the CXIX Meeting of Governors of the Center for Latin American Monetary Studies (Cemla), where he analyzed the response of the central banks of Central America and the Dominican Republic to global uncertainty.
In this space, he warned that the small economiesopen and dependent on the United States like the Dominican Republic, face challenges derived from the trade policy and immigration of the American giant and the slowdown of that economy.
The governor’s agenda also included a meeting with officials of the Treasury Department American, where he highlighted the country’s progress in financial inclusionwith an increase in banked adults from 51% in 2021 to 65% in 2024, according to the World Bank.
Valdez Albizu concluded his participation in the Annual Meetings of the IMF and the WB after holding bilateral meetings with representatives of the Bank of International Settlements (BIS), Citibank, Pimco and other investors interested in the dominican economywhere the importance of maintaining the macroeconomic stability and the coordination between Central Bank and the Ministry of Finance and Economy.
