Santo Domingo.- The Worldwide Financial Fund (IMF) concluded its 2025 Article IV session and reported that the Dominican Republic continues to point out sturdy financial fundamentals, manageable dangers, and sufficient coverage flexibility to answer adversarial eventualities. Whereas the detailed technical report continues to be pending approval, the IMF launched an official assertion outlining the nation’s present efficiency and expectations for the approaching years.
In response to the Fund, the Dominican economic system slowed towards the top of 2024 and through the first half of 2025 attributable to rising world uncertainty and tighter worldwide monetary situations. Nevertheless, current indicators level to a gradual restoration supported by expansive fiscal and financial measures. Credit score exercise, exports, and tourism have strengthened, and inflation stays below management, with an estimated common of three.7% for 2025.
Wanting forward, the IMF initiatives financial development of 4.5% in 2026, bringing the nation nearer to its long-term pattern of round 5%. The present account deficit is anticipated to remain close to 2.5% of GDP and be absolutely financed by overseas direct funding, underscoring sustained investor confidence.
Though exterior dangers proceed to outweigh optimistic elements—pushed by world uncertainty, shifts in monetary situations, and vulnerability to pure disasters—the IMF emphasised that the Dominican Republic is in a powerful place to deal with potential shocks because of stable macroeconomic foundations, sufficient worldwide reserves, a steady banking system, and room to use countercyclical insurance policies.
The Fund careworn the significance of advancing structural reforms. It inspired the federal government to maneuver ahead with tax reform aimed toward growing income by decreasing generalized subsidies whereas defending social spending, and to undertake a medium-term income technique because the framework for broader fiscal modifications. It additionally highlighted the necessity to absolutely implement the Electrical energy Pact to scale back sector losses and decrease fiscal stress. Enhancements in governance, the labor market, and social safety—aligned with the Meta 2036 plan—stay important, as does elevated funding in infrastructure, training, and well being to assist extra inclusive and aggressive development.
The IMF described the Central Financial institution’s financial coverage as acceptable and really useful sustaining trade charge flexibility, limiting overseas trade intervention to vital shocks, strengthening the financial transmission mechanism, and step by step phasing out extraordinary liquidity measures. It additionally famous that the monetary system stays sound with low systemic dangers, encouraging continued progress in regulation and supervision, the implementation of Basel II and III requirements, and additional enhancements in anti–cash laundering and counter-terrorism financing insurance policies.