Social Stability Issues Continue to Weigh on Dom Rep’s Political Risk Score

• The Short-Term Political Risk Index score for the Dominican Republic of 67.0 out of 100 is now higher than last quarter's score of 65.9. While the election of opposition candidate Luis Abinader in the July 2020 election represents a change in power from the ruling Partido de la Liberación Dominicana (PLD), this shift poses little risk to policy continuity.
• In addition, Abinader's party, the Partido Revolucionario Moderno (PRM), secured majorities in both houses of Congress, which will support policymaking.
• The Dominican Republic scores well in almost every sub-component, yet its score in the 'social stability' sub-component remains below the regional average. This is primarily due to a high level of inequality, persistent tensions with the Haitian migrant community and perceived impunity for government officials accused of corruption.
• Risks to social stability have increased this quarter due to the Covid-19 pandemic, which will push unemployment higher and may cause public unrest in the near term.  

(Source: Fitch)