NEWS FLASH

UPCOMING WEBINAR - CHINA'S FIVE-YEAR PLAN AND ITS SHIFTING ECONOMIC LAN...

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 ...

Dominican government submits supplementary budget to boost capital spending and economic growth
DOMINICAN REPUBLIC · In Brief · 20 Aug 2025 · 1 response

The Dominican Government has submitted a supplementary budget bill to Congress that increases capital expenditure by 0.4% of GDP, thereby raising the overall deficit to 3.47% of GDP, up from the 2.99% originally approved in the 2025 budget. According to the Ministry of Finance and Economy, the me...

Government exploring fiscal reform possibilities
DOMINICAN REPUBLIC · Report · 18 Aug 2025

With Magín Díaz at the helm of the new Ministry of Finance and Economy, discussion is underway about whether the government is preparing to propose a fiscal reform plan. Increasingly clear signals suggest that such a debate may be approaching. Diaz has been meeting with business sector representa...

Moody’s Ratings raises the credit rating of the Dominican Republic from “Ba3+” to “Ba2” with a stable outlook.
DOMINICAN REPUBLIC · In Brief · 01 Aug 2025

According to a statement released by the Ministry of Finance and Economy, Moody’s considers that “high political stability—especially in comparison with other Ba-rated countries and regional peers—helps the Dominican Republic attract consistently high levels of foreign direct investment, increase...

The monetary policy interest rate remains unchanged
DOMINICAN REPUBLIC · In Brief · 31 Jul 2025

The Central Bank announced that in August 2025, the monetary policy interest rate will remain unchanged at 5.75% annually. The rate of the permanent liquidity expansion facility (1-day repos) remains at 6.25% annually, while the overnight deposit rate continues at 4.50% annually. The monetary pol...

Low growth persists; monetary policy responds
DOMINICAN REPUBLIC · Forecast · 17 Jul 2025

The most recent data confirms that low growth is consolidating for 2025. The Monthly Indicator of Economic Activity (IMAE) for May showed y/y growth of 3.1%, and cumulative growth for January–May stood at 2.6%. Lower rates can be observed across most sectors, and are particularly noticeable in co...

Magín Díaz appointed Minister of Finance following Jochy Vicente's resignation
DOMINICAN REPUBLIC · In Brief · 15 Jul 2025 · 1 response

Jochy Vicente has resigned as Minister of Finance of the Dominican Republic, and economist Magín Díaz has been appointed as his successor. Vicente had served in the role since August 2020, at the start of President Luis Abinader's first term. Magín Díaz has dedicated his professional career to fi...

Monetary policy rate remains unchanged in July 2025
DOMINICAN REPUBLIC · In Brief · 01 Jul 2025

The Central Bank decided to keep the monetary policy interest rate unchanged at 5.75% annually for the seventh consecutive month. The rate for the overnight liquidity expansion facility (1-day repos) also remains at 6.25% annually, while the rate for overnight remunerated deposits continues at 4....

Central Bank increases liquidity to stimulate the economy
DOMINICAN REPUBLIC · In Brief · 17 Jun 2025

Yesterday, the Monetary Board authorized the Central Bank to implement a liquidity provision program amounting to DOP 81 billion, aimed at promoting the revitalization of economic activity amid high global uncertainty, upward pressure on interest rates, and slower growth in credit to the private ...