Dominican Republic

The Dominican economy has enjoyed strong growth since 2014 (6.6 percent, the highest in the Western Hemisphere), supported by stable macroeconomic and financial policies, and a favorable external environment. Growth has generally been above potential, but inflation remains muted and the external position is in line with fundamentals. The strong economic and policy performance has strengthened resilience to downside risks, but vulnerabilities remain. The fiscal position is under moderate sustainability and affordability pressures; key structural bottlenecks have not been addressed; and social outcomes can be further strengthened. Upcoming elections in 2020 are likely to dominate the near-term policy landscape.