## Dominican Republic: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Dominican Republic

_IMF Staff Country Reports, August 15, 2019_

## Source details

**Canonical URL:** [Dominican Republic: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Dominican Republic](https://www.imf.org/en/publications/cr/issues/2019/08/15/dominican-republic-2019-article-iv-consultation-press-release-staff-report-and-statement-by-48592)

## Other formats

- [Markdown version](/en/publications/cr/issues/2019/08/15/dominican-republic-2019-article-iv-consultation-press-release-staff-report-and-statement-by-48592/index.md)
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## Bibliographic details
- Published: August 15, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513511108.002

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### Key findings and summary
- The economy rebounded to a record high growth of 7 percent in 2018.
- The positive momentum carried into early 2019.
- The strong economic and policy performance has strengthened resilience to downside risks, but vulnerabilities remain.
- The fiscal position is under moderate sustainability and affordability pressures.
- Key structural bottlenecks have not been addressed.
- Social outcomes can be further strengthened.
- Upcoming elections in 2020 are likely to dominate the near-term policy landscape.

### Macroeconomic outlook and risks
- Outlook: favorable, with growth moderating to potential.
- Inflation: picking up toward target with fading supply shocks.
- External position: normalizing.
- Risks: moderate and balanced.
  - Upside risk: solid income and credit growth could sustain domestic demand.
  - Downside risk: external risks are building up.

### Fiscal assessment and sustainability
- Fiscal position: under moderate sustainability and affordability pressures.
- Recommendation: tighter fiscal policies are warranted by demand, sustainability and affordability considerations.
- Recommended strategy: a frontloaded adjustment, anchored on widening the tax base and mindful of the distributional effects of the adjustment measures, would help reverse the upward debt dynamics.

### Structural and social policy issues
- Structural bottlenecks remain unaddressed.
- Social outcomes: scope to be further strengthened.
- Policy design emphasis: widen tax base while being mindful of distributional effects.

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## Content in this bundle

- **1domea2019001**
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_Source: https://www.imf.org/en/publications/cr/issues/2019/08/15/dominican-republic-2019-article-iv-consultation-press-release-staff-report-and-statement-by-48592_