- The Ministry of Finance released the information on Tuesday, which constitutes an endorsement of the Dominican Government’s monetary policy
“We expect real GDP (Gross Domestic Product) growth of 5% annually over the next four years, keeping the Dominican Republic as one of the fastest-growing economies in Latin America and the Caribbean,” S&P Global said in its report, according to the Treasury.
The agency highlighted that the country’s economic expansion has lifted GDP per capita to about $11,500 in 2024, nearly doubling from $6,400 in 2014. According to S&P, this rapid growth mitigates the risks associated with moderate fiscal deficits and limited budgetary flexibility.
The report also stresses that the pro-market policies implemented by the Government have sustained a high level of investment, estimated at 32% of GDP in 2024. Additionally, tourism continues to consolidate itself as a key sector for growth, with a forecast of 11.5 million visitors in 2024, which would mean an increase of 12% compared to 2023.
Finally, S&P highlighted progress in structural reforms, such as the approval of the Fiscal Responsibility Law, the reorganization of the public sector to optimize spending, and constitutional and labor reforms, which strengthen the country’s economic and fiscal sustainability.
The rating agency maintained its 2023 assessment, after the economic recovery that the country registered following the pandemic caused by Covid-19.
On November 20, the credit agency Fitch Ratings confirmed the Dominican Republic’s risk rating at BB-, with a positive outlook, highlighting the strength of its economy, advances in governance and the potential to implement reforms that strengthen the country’s macroeconomic and institutional framework.
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