Strong Revenue Growth in The Dominican Republic Will Narrow Fiscal Deficit, Lower Debt Load

• Fitch Solutions expects that the Dominican Republic will run narrower budget deficits in the quarters ahead as government revenues outpace spending growth. 
• The fiscal deficit is projected at 3.2% of GDP for 2022, from an estimated 3.6% in 2021 and 8.0% in 2020, largely due to a constructive growth outlook that will drive government revenue intake in the coming quarters. 
• Sustained economic growth will drive an 8.4% increase in public revenues in 2022. A steady recovery in tourism, combined with a tightening labour market, will drive revenue growth in the coming quarters. The economy is expected to grow 4.8%in 2022, supporting income growth and value added tax collection. 
• Public debt as a percentage of GDP is expected to fall, from an estimated 58.2% in 2021 to 57.9% in 2022 and 54.8% by 2026, as primary surpluses and sustained growth shrink the country's debt burden. 

 (Source: Fitch Solutions)