IMF concludes Article IV review for 2024

DOMINICAN REPUBLIC - In Brief 24 Jul 2024 by Magdalena Lizardo

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The IMF technical team, upon concluding the Article IV review for 2024, recognized that the history of solid policies and firm institutional frameworks have allowed the Dominican Republic to exhibit robust and resilient economic growth with low inflation over the past two decades. The IMF suggests that from now on, efforts should be directed toward preserving macroeconomic and financial stability, which implies the restoration of fiscal and external spaces, the normalization of monetary policy, and the promotion of structural reforms, particularly a comprehensive fiscal reform and that of the electricity sector. It also suggests that the financial and prudential regulatory framework be updated to the most recent international standards, as well as deepening the foreign exchange market, expanding the use of hedging mechanisms, supporting greater exchange rate flexibility, and strengthening the effectiveness of the inflation targeting regime. The IMF applauds the commitment of the authorities to expedite the recapitalization of the Central Bank. https://www.imf.org/en/News/Ar...