SANTO DOMINGO – The renowned credit rating agency Fitch Ratings reaffirmed the Dominican Republic's risk rating at BB- , with a positive outlook, valuing the strength of the economy , improvements in governance indicators , and the potential to carry out reforms that strengthen the macro-institutional framework .
According to the firm, the Dominican State is supported by a history of robust economic growth , a diversified export , a high gross domestic product (GDP) per capita, and governance results
The document also points to the recently approved Fiscal Responsibility Law , which establishes a fiscal rule that imposes a limit on real spending growth of 3% (7% in nominal terms) and anchors debt at 40% of GDP by 2035 , a measure that seeks to guarantee fiscal sustainability and strengthen confidence in the country's economic policy
In its report, Fitch highlights the gradual reduction of external debt in foreign currency, which fell to 67% in September 2024, a level similar to that of 2019, compared to 69% recorded at the end of 2023. “This improvement is the result of a greater issuance of global bonds denominated in pesos, which contributes to the country's financial stability,” the document emphasizes.
Furthermore, it highlights the positive effects of the monetary policy adopted by the Central Bank (BCRD), which consisted of reducing interest rates , bringing its monetary policy rate to 6.25%, compared to the 8.5% reached in May 2023, reflecting a more balanced economic environment, and bringing inflation, whose average rate until October 2024 was 3.33%, below the target range of 4%.
The agency highlighted that the country's economic growth has resumed its historically robust , expanding by 5.1% in the first half of 2024 , following the slowdown experienced in 2023 ( 2.3%), primarily caused by the high interest rate environment. The free trade zones and tourism remain the pillars of the economy , with the latter reaching record levels of visitor arrivals, confirming the resilience of these key areas for the country's development.
In this context, Fitch projects economic growth of 5% in 2024 and 2025 , supported by a record level of foreign direct investment tourism and energy sectors , which bodes well for medium-term growth prospects.
