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Santo Domingo.- The International Monetary Fund (IMF) estimates that there are "preliminary indications" that the Dominican economy will rebound next year and grow by 4.5%, supported by the support of monetary and fiscal policies, with credit, exports, and the growth of tourism.
The organization believes that this year the country will grow by 3.0%, according to information provided this Tuesday by the Central Bank of the Dominican Republic.
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"Inflation remains close to the target and is expected to average 3.7% in 2025. The external position is in line with economic fundamentals and recommended policies," said the international credit agency, according to the information. Regarding the current account deficit, it is expected to reduce even further this year, reaching 2.5% of the gross domestic product (GDP), supported by the strength of exports and remittances, and to be fully financed by foreign direct investment (FDI). "The government's deficit and debt are projected on a gradually decreasing path, due in part to the expected reduction in losses from the electricity sector and a better 'targeting' of subsidies for electricity and fuels. This will contribute to creating fiscal space for the programmed increase in public investment," considers the IMF. The organization estimates that the Dominican Republic is managing "positively" the "ambitious" agenda of structural reforms, focused on boosting the country's potential growth and reaching the high-income economy level, as planned in the Meta 2036 Plan. However, he warned that to achieve these goals, efforts are required to continue improving governance, advance labor and social security reforms, and invest "efficiently" in infrastructure projects, education, and health. The IMF states that the high vulnerability of the Dominican Republic to natural disasters requires adopting a comprehensive approach to risk mitigation and increasing the country's resilience. "Among the most important measures are improving frameworks for disaster risk management and delving into fiscal policy considerations related to natural disasters," the credit agency points out.
