Dominican Republic: 2022 Article IV Consultation-Press Release; and Staff Report

IMF Staff Country Reports, July 8, 2022

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Canonical URL: Dominican Republic: 2022 Article IV Consultation-Press Release; and Staff Report

The Dominican Republic’s economy "continued to show remarkable resilience to shocks, rebounding strongly from the impact of the pandemic."
"The recovery has been broad based; gross domestic product was about 5 percent above pre-pandemic levels as of end-2021."
The country "maintained sound market access and benefitted from IMF support through the Rapid Financing Instrument."
A "frontloaded fiscal consolidation tailored policies to the evolving impact of the pandemic—phasing out support as employment recovered and devoting efforts to the reopening—and allowed a significant reduction in public debt."
Discussions focused on: "the ongoing normalization of monetary policy, the fiscal response to global shocks amid efforts to secure fiscal sustainability, and the exit strategy from financial sector pandemic support."
Reforms—"supported by IMF capacity development"—can "foster growth and signal strong commitment to sustainable policies."
"Sound sequencing in the reform agenda can build consensus for revenue mobilization going forward."

Broad-based recovery with GDP about "5 percent above pre-pandemic levels as of end-2021."
Continued access to markets and IMF support via the "Rapid Financing Instrument."

Implementation of a "frontloaded fiscal consolidation" that:
- phased out pandemic support as employment recovered;
- prioritized reopening efforts;
- "allowed a significant reduction in public debt."
Emphasis on "revenue mobilization" going forward, conditional on "sound sequencing in the reform agenda" to build consensus.

Key focus on "the ongoing normalization of monetary policy."
Attention to the "exit strategy from financial sector pandemic support" to ensure stability while withdrawing support measures.

Continue normalization of monetary policy consistent with macroeconomic stabilization.
Pursue fiscal measures to secure fiscal sustainability while managing global shocks.
Sequence reforms to:
- foster growth;
- signal commitment to sustainable policies;
- build consensus for revenue mobilization.
Leverage IMF capacity development support to implement reforms effectively.

International Monetary Fund. Dominican Republic: 2022 Article IV Consultation-Press Release; and Staff Report (July 8, 2022).