DOMINICAN REPUBLIC
Analyst
Magdalena Lizardo
Former Adviser, Ministry of Economy, Planning and DevelopmentDatabanks
Recent Country Insights
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...