The International Monetary Fund (IMF) has formally recognized the Dominican Republic’s robust economic recovery and underlying resilience, attributing this positive trajectory to effective government policies and key sectoral growth. In its concluding assessment of the 2025 Article IV consultation, the Executive Board highlighted how strategic monetary and fiscal measures, coupled with expansions in credit, exports, and tourism, have fortified the nation’s macroeconomic performance.
Economic projections outlined in the report anticipate growth accelerating to 4.5% in 2026, with a subsequent convergence toward the country’s long-term potential growth rate of 5%. This follows a period of moderated expansion in late 2024 and early 2025, influenced by global financial uncertainty. Despite these headwinds, inflation has remained well-anchored, hovering near the central bank’s target range of 4% (±1%) and is forecast to average 3.7% for 2025.
The IMF’s analysis further indicates a strengthening external position, deemed consistent with fundamental economic principles. The current account deficit is expected to narrow to 2.5% of GDP this year, buoyed by robust export earnings and steady remittance flows. Notably, this deficit is projected to be fully financed by foreign direct investment (FDI), underscoring international investor confidence.
Fiscal health is also on an upward path, with government deficit and debt levels set to decline gradually. This fiscal consolidation is driven by anticipated reductions in losses from the electricity sector and more efficient targeting of energy subsidies. These reforms are poised to generate significant fiscal space for planned increases in public investment.
The report commends the Dominican Republic’s two decades of solid macroeconomic performance, achieved through the continual strengthening of policies and institutions. This foundation positions the nation favorably to navigate external risks, including volatile global financial conditions and vulnerability to natural disasters. The IMF specifically urged authorities to maintain prudent fiscal policies, increase public investment in line with the medium-term budgetary framework, and fully implement the Electricity Pact to ensure sectoral resilience and mitigate fiscal risks.