Dominican Republic: 2024 Article IV Consultation-Press Release and Staff Report
IMF Staff Country Reports, September 13, 2024
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- Dominican Republic: 2024 Article IV Consultation-Press Release and Staff Report
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Bibliographic details
- Published: September 13, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400288708.002
Summary
- A track record of sound policies and institutional policy frameworks has helped the Dominican Republic achieve robust and resilient economic growth and low inflation over the last two decades.
- Effective policies contributed to a growth moderation that appropriately supported inflation’s rapid and sustained return to its target last year and then aided the recovery.
- Close monitoring of the financial sector supported macro-financial stability.
- Planned enhancements to policy frameworks and deepening structural reforms—in particular, comprehensive fiscal and electricity reforms—have the potential to further support stability, competitiveness, and inclusive growth.
Key findings
- Economic performance: Robust and resilient growth with low inflation over the last two decades.
- Inflation dynamics: Rapid and sustained return to the inflation target last year, supported by growth moderation.
- Financial sector: Remains resilient and well capitalized; ongoing efforts to align the regulatory framework with the latest international standards are recommended.
- Fiscal framework: Improvements possible in spending and revenue efficiency through continued public financial management reforms and strengthened revenue administration.
- Structural vulnerabilities: Need for reforms in education and the labor market, further improvements to social outcomes, and implementation of climate adaptation and mitigation policies to support inclusive and resilient growth and reduce vulnerabilities.
Policy recommendations
- Continue efforts to bring the financial regulatory framework up to the latest international standards.
- Enhance fiscal policy framework and spending and revenue efficiency via:
- Continued improvements to public financial management.
- Further strengthening of revenue administration.
- Advance comprehensive fiscal and electricity reforms to bolster stability, competitiveness, and inclusive growth.
- Implement reforms to education and the labor market to support inclusive and resilient growth.
- Advance social outcome improvements and climate adaptation and mitigation policies to reduce vulnerabilities.
Institutional and sectoral priorities
- Financial sector supervision and regulatory updates to maintain macro-financial stability.
- Public financial management reforms to improve spending efficiency.
- Revenue administration strengthening to increase fiscal space and effectiveness.
- Electricity sector reform as a key structural measure for competitiveness.
- Education and labor market reforms to enhance inclusiveness and growth potential.
- Climate policy implementation for adaptation and mitigation to reduce long-run risks.
International Monetary Fund. "Dominican Republic: 2024 Article IV Consultation-Press Release and Staff Report", September 13, 2024.
Content in this bundle
- 1. Real Sector Developments