Country Insights

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​Central Government deficit ends at 2.7% of GDP in 2021
DOMINICAN REPUBLIC - In Brief 20 Jan 2022
The Ministry of Finance reported that the Central Government deficit was 2.7% of GDP in 2021, lower than the 3.0% originally contemplated in the 2021 Public Budget approved in 2020. This reduction is due to an significant increase in tax revenues, 12.7 % higher than initially planned. Although sp...

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2021 exceeded expectations, but structural reforms loom
DOMINICAN REPUBLIC - Report 10 Jan 2022
Performance in 2021 exceeded expectations in terms of economic growth, the exchange rate and accumulation of international reserves. The same was not true, though, for inflation, which failed to stay within the target range, while the NFPS deficit ended at around 3% of GDP, similar to the level c...

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New increase in the monetary policy rate in a context of inflationary pressure and strong economic recovery
DOMINICAN REPUBLIC - In Brief 30 Dec 2021
The Central Bank of the Dominican Republic announced an increase in the monetary policy rate of 100 basis points, placing said rate at 4.5% per year. It is the second time that the monetary policy rate has increased after the reductions experienced during 2020 in order to support the economic rec...

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Economic expectations exceeded
DOMINICAN REPUBLIC - Report 13 Dec 2021
The capacity for rapid recovery of the Dominican economy was reaffirmed in the final stretch of 2021, with y/y growth of 12.4% in January-October 2021. Higher economic growth, greater-than-expected tax revenues and containment of spending have led to a drastic reduction in the nonfinancial public...

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The Central Bank of the Dominican Republic raised the monetary policy interest rate
DOMINICAN REPUBLIC - In Brief 24 Nov 2021
Given the persistence of inflationary pressures beyond what was expected, the Central Bank today decided to raise the monetary policy rate from 3% to 3.5%, annually. With the decision, the interest rate of the permanent liquidity expansion facility (1-day Repos) also increases from 3.5% to 4.0%, ...

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​Second budget amendment reestablishes a fiscal deficit of 3% of GDP in 2021
DOMINICAN REPUBLIC - In Brief 18 Nov 2021
The government sent to Congress a second amendment to the Public Budget for 2021. The amendment reflects a substantial improvement in the government's projected revenues for 2021, 8.3% higher than the amount projected in the first budget amendment for 2021. There is also a 1.4% increase in expend...

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Private investment is driving double-digit growth
DOMINICAN REPUBLIC - Report 09 Nov 2021
After several weeks of indecision over whether to propose a tax reform, President Luis Abinader finally chose not to move forward, and indefinitely suspended discussions over the fiscal pact. This measure was widely accepted by both business and the public, with all sectors understanding that thi...

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​President Abinader will not present tax reform.
DOMINICAN REPUBLIC - In Brief 27 Oct 2021 1 response
In the long-awaited address to the country, President Luis Abinader announced that he will not submit a tax reform to Congress or increase taxes. He indicated that the only priority at this time is to consolidate the economic recovery and continue betting on growth and investment. The Government ...

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A powerful rebound - and prospects for tax reform
DOMINICAN REPUBLIC - Report 12 Oct 2021 1 response
The probability that the Dominican economy will end 2021 with growth of close to 10% is increasing, given accumulated growth of 13% in January-August, compared to the same period in 2020. But not everything is rosy. Although formal employment has returned to nearly pre-pandemic levels, overall un...

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Government's tax reform proposal leaked to the press aims to raise revenues by 2.35% GDP in 2022 and 1.79% in 2025
DOMINICAN REPUBLIC - In Brief 11 Oct 2021 2 responses
A document from the Dominican government has been leaked to the press outlining the purposes of the tax reform that is expected to be formally disclosed in the next few days, and that so far has not been confirmed or denied by official bodies. In this document, the Dominican government lays down ...

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A Public Budget Bill for 2022 without fiscal reform and a deficit of 3% of GDP
DOMINICAN REPUBLIC - In Brief 28 Sep 2021
The Council of Minister approved yesterday that the General Public Sector Budget Bill for 2022 will have a deficit of 3% of GDP. The amount of income is projected in DOP871 b. and the total expenses and financial applications would amount to DOP1,046 b. The financing need would amount to DOP175 b...

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​A timid and general sketch of the content of the tax reform proposal
DOMINICAN REPUBLIC - In Brief 21 Sep 2021
The Dominican government delivered at the last meeting of the Economic and Social Council on September 15, the document Dialogue of Reforms 2021: Introductory Document for Discussion, in which it roughly outlines the content of the 12 proposed reforms for discussion with the representatives of po...

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President Abinader details constitutional reform content, but the content of the tax reform is pending.
DOMINICAN REPUBLIC - In Brief 16 Sep 2021
Yesterday, in the dialogue of the political parties called by President Abinader to agree on an agenda of 13 reforms, only the government's proposal on the constitutional reform was presented, leaving for the next meetings the presentation of the content of the remaining reforms, including the fi...

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Abinader's second year begins with ambiguous expectations
DOMINICAN REPUBLIC - Report 09 Sep 2021 1 response
Last August 16th marked the first year of Luis Abinader’s presidency. It was a year marked by the pressures of handling the pandemic crisis, and the challenges of creating the necessary conditions for both a health and economic recovery. During the first year, the political context was chara...

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Today begins dialogue on the reform agenda proposed by President Abinader
DOMINICAN REPUBLIC - In Brief 30 Aug 2021
Today begins the dialogue with the political parties on the reform agenda proposed by President Luis Abinader in his speech on last August 18, on the occasion of the first year of his mandate. The dialogue takes place within the Economic and Social Council. The representatives of the political pa...