The International Monetary Fund (IMF) mission, led by Michael Perks, praised the Dominican Republic’s economic performance during recent discussions. The IMF noted a credit rating upgrade by Fitch Ratings, which improved the country’s status from BB- to BB with a stable outlook.
This positive shift is largely attributed to the tourism sector’s growth, with the Central Bank projecting $12.2 billion in arrivals by the end of 2026. Perks highlighted the benefits of increased exchange rate flexibility, suggesting it has aided the economy in absorbing external shocks.
In a meeting with Central Bank Governor Héctor Valdez Albizu, Perks commended a recent 25-basis-point increase in the monetary policy rate. This measure aims to mitigate potential inflation threats. He expressed the IMF’s readiness to assist the Dominican Republic in further developing its economic strategies to better navigate geopolitical and commodity risks.
Valdez Albizu reported that, despite a challenging international climate, the Dominican economy has exceeded initial expectations with a growth rate of 5.6% recorded in September. For the January to September 2026 period, the economy has accumulated a growth rate of 4.6%. He anticipates continued investment momentum will sustain a growth forecast of around 4.5% for the end of 2026, putting it among the highest in the region.
The governor noted that significant contributing sectors included construction, which surged at 18%, followed by mining and quarrying at 17.9%, and financial services at 6.9%. Additionally, he informed IMF officials that foreign exchange-generating activities are expected to reach approximately $50.7 billion by the end of the year, contributing to the stability of the exchange rate, which has appreciated by around 4.0% to date.
Looking ahead, Valdez Albizu projected a current account deficit of about 1.0% of gross domestic product by the end of 2026. He stated that this would be largely financed by foreign direct investment, estimated at around $5.349 billion.
