DOMINICAN REPUBLIC
Analyst
Magdalena Lizardo
Former Adviser, Ministry of Economy, Planning and DevelopmentDatabanks
Recent Country Insights
Cabinet changes, and expectations of greater dynamism this year
DOMINICAN REPUBLIC · Report · 26 Jan 2026
Economic performance in 2025 was weak. But the combination of government agenda prioritization efforts and signs of stronger growth toward yearend has fostered official optimism about economic activity for 2026. GDP growth for 2025 is estimated at 2.2%, less than half the 5% rate recorded in 2...
Sharp economic slowdown; health insurance corruption case poses political test for Abinader government
DOMINICAN REPUBLIC · Report · 23 Dec 2025
The economy is experiencing a marked slowdown in activity, with y/y growth virtually stagnant in October (at 0.2%), and clear signs of labor market cooling. This is unfolding amid rising inflation, primarily explained by supply-side shocks associated with tropical storm Melissa, and concentrated ...
Economic slowdown and tax tensions frame the 2026 budget debate
DOMINICAN REPUBLIC · Report · 18 Nov 2025
Economic conditions in the Dominican Republic softened further in September, with growth slowing across nearly all major sectors. The adverse effects of Hurricane Melissa, including disruptions to agricultural production and temporary business closures, helped drive food prices higher. Headline i...
Electric power service restored after nationwide blackout in the Dominican Republic
DOMINICAN REPUBLIC · In Brief · 11 Nov 2025
This afternoon, the electric service was suspended throughout the national territory. The situation was caused by a failure in the transmission system, resulting in a cascading shutdown of several power generation plants. The blackout temporarily interrupted the operation of the Santo Domingo Met...
Dominican Republic issues USD 1.6 bn 10-year bond at 5.875%
DOMINICAN REPUBLIC · In Brief · 22 Oct 2025 · 1 response
With today's issuance of a USD 1.6 billion sovereign bond, the Dominican Government covers its financing needs for 2025. The bond carries a 10-year maturity and an annual interest rate of 5.875%. Investor demand for the placement reached USD 5.0 billion. The Ministry of Economy and Finance stated...
Economic slowdown persists in 2025, but moderate expansion expected in 2026
DOMINICAN REPUBLIC · Report · 21 Oct 2025
The Dominican economy again showed signs of weakening, growing just 1.5% y/y in August. Headline inflation remained at the lower end of the target range (at 3.76%), with core inflation at the upper end (at 4.35%). The DOP experienced high volatility in September, and y/y depreciation of 4.85%, wh...
Reduction of the Monetary Policy Interest Rate by 25 Basis Points
DOMINICAN REPUBLIC · In Brief · 01 Oct 2025
Yesterday, the Central Bank of the Dominican Republic (BCRD) reduced the monetary policy interest rate (MPR) by 25 basis points, from 5.75% to 5.50% per year. At the same time, it also lowered the rate of the overnight liquidity expansion facility (one-day repos) from 6.25% to 6.00% per year. The...
Public Budget Bill for 2026 envisions a deficit of 3.2% of GDP
DOMINICAN REPUBLIC · In Brief · 28 Sep 2025
The bill projects revenues of RD$1,342,258.2 million (15.5% of GDP), while total expenditures amount to RD$1,622,833.4 million (18.7% of GDP). The budgeted deficit is RD$280,575.2 million (3.2% of GDP). This deficit is higher than the 3.2% of GDP set in the original 2025 budget but lower than the...
Higher public investment and deficit driving 2025 growth
DOMINICAN REPUBLIC · Report · 22 Sep 2025
The Dominican economy grew by just 2.4% in H1 2025, half of its potential. To stimulate activity, the government approved a budget amendment that raises capital spending by 0.4% of GDP, increasing the overall deficit by the same amount. With the same objective, the Central Bank has continued the ...