Dominican Republic expected to be a Regional Out-Performer in Real GDP growth

  • According to Fitch, the Dominican Republic will be a regional out-performer in real GDP growth in the coming quarters. Robust construction, manufacturing and tourism activity, supported by close ties to the US economy, will drive growth.

 

  • Robust economic growth will support revenues and narrow the Dominican Republic's fiscal deficit in the coming quarters. Elevated social spending and public investment, however, will partially limit the impact of accelerating revenue growth.

 

  • The Banco Central de la República Dominicana (BCRD) will likely hike its benchmark interest rate in 2019 in order to partly preserve its interest rate differential with the US and minimize pressure on the Dominican peso.

 

(Source: Fitch Solutions: Country Risk Report)