Spanish
Once international uncertainty has dissipated, the country's economy would regain its dynamism, expanding by around 4.0% - 4.5%
Santo Domingo. - The governor of the Central Bank of the Dominican Republic (BCRD), Héctor Valdez Albizu, met with executives from the investment bank based in the United States, Morgan Stanley, in which he offered them an analysis of the current economic and monetary behavior of the Dominican Republic, along with an advance in growth projections, advances achieved in regulation and macroprudential measures, inflation, financial system and external sector that the entity contemplates for the year 2025.
The executives of the international corporation, Raúl Gallegos, Emma Cerda and Christopher Mejía, received from the governor a panorama of economic activity and employment in the country, where he stated that “the Dominican economy maintained a good performance during the year 2024, with a growth of 5.0%, close to its potential and one of the highest in Latin America.
In the month of March, the economy expanded by 5.4% year-on-year, accumulating a growth of 2.7% year-on-year during January-March 2025. Looking ahead, it is expected that, once the factors of uncertainty dissipate, the economy would regain its dynamism, expanding around 4.0% - 4.5%.”
Regarding inflation, Valdez Albizu pointed out that “it has remained within the target range of 4% ± 1% since the beginning of 2023, standing at 3.58% year-on-year in March 2025; while core inflation reached 4.24%, also close to the center of the target. Forecast models indicate that overall and core inflation will remain within the target range of 4% ± 1% during 2025 and 2026”.
Likewise, among other relevant indicators on the good performance and prospects of the Dominican economy, the governor told them that “the BCRD has the necessary spaces to react with its monetary policy instruments with the aim of achieving the inflation target and contributing to the economy returning to a growth path close to its potential, once global uncertainty moderates and external conditions allow it”.
Regarding the significant advances achieved, both in financial regulations and in the adoption of macroprudential measures, Valdez Albisu pointed out, among other initiatives that have been implemented, that "the modification to the Operational Risk Regulation, under Basel Pillar I, was carried out; the modification to the Regulation on the Protection of Users of Products and Services, which will contribute to reducing commissions and increasing financial inclusion; and the approval of the start of Mark to Market as of January 1, 2026, which will entail the adaptation of regulations on liquidity risk and market risk".
Likewise, the governor gave them a projection on the behavior of the external sector in 2025, stating that “in total, the Dominican economy generated foreign exchange for some US$43.8 billion during 2024, and it is projected that in 2025 it would generate foreign exchange for some US$45.7 billion. Despite the uncertainty of the international environment, it is projected that in 2025 the current account deficit will be reduced to 3.0% of GDP; financed by foreign direct investment that would reach some US$4.7 billion”.
He also referred to the international reserves, noting that “they are above US$ 15,000 million, equivalent to about 12.0% of the gross domestic product (GDP) and about five months of imports. These reserve levels represent around 90% of the IMF's new metric, a value considered comfortable”.
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When making a conclusion, Valdez Albizu stated that “the Dominican Republic is a country in which one can bet on its strong macroeconomic fundamentals and its proven capacity for resilience in the face of the different shocks that have been faced during the last decades. In addition, a well-diversified economic structure, legal security, and a good business climate and social peace are elements that will allow the Dominican Republic to continue being a safe and profitable destination for international investors”.
During the meeting, the governor was accompanied by Joel Tejeda, Deputy Manager of Monetary, Exchange and Financial Policies; Julio Andújar, economic advisor to the Governorship; Joel González, Deputy Manager of Monetary Programming; and Ramón González, Deputy Manager of National Accounts.
