He highlighted that the favorable evolution of credit due to the easing of monetary policy, the increase in public investment and a reduction in external pressures contribute to this outlook.
SANTO DOMINGO– The Dominican Republic's Multiple Banking Association (ABA) expressed an optimistic view on the recent evolution of the Dominican economy and the prospects for 2026, highlighting the strength of macroeconomic fundamentals, the responsiveness of monetary policy, and the active role of the banking sector in boosting productive activity.
He indicated that, amid a complex international environment, a gradual improvement in global financial conditions has been observed, driven by the start and continuation of the process of easing monetary policy by the United States Federal Reserve, which has helped to reduce external pressures on emerging economies.
He noted that, at the local level, this more favorable external environment, combined with inflation expectations consistently within the target range, gave the Central Bank of the Dominican Republic the necessary space to move towards a more flexible monetary stance, which was reflected in cuts to the monetary policy rate, accompanied by a liquidity facility program of RD$81 billion, equivalent to 1% of GDP.
The entity noted that these measures have had a direct impact on the dynamics of private credit in local currency, whose annual growth accelerated from 6.8% in March to 7.7% in November, with a projected expansion between 9% and 11% by the end of 2025. It pointed out that this recovery has been driven mainly by commercial credit to companies and financing for the acquisition and remodeling of homes, key sectors for job creation and economic growth.
The association explained that the favorable evolution of credit, along with the increase in public investment announced by the Ministry of Finance, has prompted an upward revision of growth projections for 2026. In this regard, both the Central Bank and international organizations and market agents estimate that the Dominican economy could return to growth rates in the range of 4.0% to 4.5% this year.
He emphasized that these advances are in line with the objectives of the National Strategy Goal RD 2036, an initiative in which he actively participates and in which he coordinates the Financial Committee, promoting conditions that favor greater access to credit, the strengthening of investment and the sustainability of long-term economic growth.
The Association also highlighted that the Dominican economy maintains solid fundamentals, reflected in risk levels below the regional average, as a result of prudent macroeconomic management.
Similarly, he emphasized that proper risk management has allowed the banking sector to exhibit healthy indicators of liquidity, asset quality, capital solvency and profitability, positioning itself among the most consolidated financial systems in Latin America
Finally, the ABA reaffirmed the commitment of multiple banks to continue supporting the country's economic development, channeling financing to productive sectors and households, and contributing to building an environment of trust, stability and sustainable growth.
