Dominican Republic: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Dominican Republic
IMF Staff Country Reports, June 22, 2023
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- Dominican Republic: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Dominican Republic
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Bibliographic details
- Published: June 22, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400247521.002
Overview
- The 2023 Article IV Consultation highlights that the Dominican Republic’s economy has been one of the most dynamic and resilient in the Western Hemisphere over the last two decades, displaying an impressive recovery from the pandemic, supported by the authorities’ sound policies as well as positive global spillovers.
- Supported by sound policies and fundamentals, the economic outlook is relatively positive, albeit subject to high uncertainty, mostly due to global risks.
- Against a backdrop of inflation rapidly declining to target, a growth slowdown amid high uncertainty and near-term downside risks, discussions focused on the required policy mix to maintain macroeconomic and financial stability.
Key findings
- Inflation has been rapidly declining to target.
- The economy showed an impressive recovery from the pandemic.
- Growth is slowing amid high uncertainty and near-term downside risks.
- Sound policies and fundamentals have supported the recovery and outlook.
- Financial supervision needs to remain vigilant amid tight global financial conditions and global financial stability concerns.
- Medium-term priorities include enhancing credibility of policy frameworks, improving the business climate, governance, and social safety nets, and persevering with electricity sector reforms.
- These medium-term policies can foster equitable growth and reinforce hard-earned economic and financial stability.
Near-term policy priorities
- Return inflation to target and maintain inflation expectations firmly anchored.
- Maintain vigilant financial supervision in the context of tight global financial conditions and global financial stability concerns.
Medium-term policy recommendations
- Enhance the credibility of policy frameworks.
- Make further improvements to the business climate.
- Strengthen governance and social safety nets.
- Persevere with electricity sector reforms.
Subject coverage and keywords
- Subject: Commodities, Economic sectors, Electricity, Inflation, International organization, Monetary policy, Prices, Public debt, Public sector, Revenue administration
- Keywords: Central America, core inflation, CPI basket, Electricity, Global, Inflation, inflation expectation, liability positions vis-à-vis nonresident, market expectation, near-term policy priority, Public sector, return on equity
Content in this bundle
- 1domea2023001