A Boom In Revenues In The Dominican Republic Will Help Narrow The Fiscal Deficit In 2021, 2022

• Surging government revenues amid a swift economic recovery in the Dominican Republic will help narrow the fiscal deficit over the coming quarters, particularly as the government reins in expansionary measures. 
• Fitch Solutions has revised its fiscal deficit forecasts to 4.5% of GDP in 2021 and 4.0% in 2022, from 6.9% and 6.0% previously, due to its more constructive outlook for real GDP growth and revenues. 
• While President Luis Abinader’s government has delayed plans to propose fiscal consolidation measures, the country’s slimmer fiscal deficits will likely allow the government additional flexibility to avoid large-scale tax increases or spending hikes in a reform package.

(Source: Fitch Solutions)