Dominican Republic has the potential to be an advanced economy, IMF experts says

The Dominican Republic has the potential to become an advanced economy in the next 40 years, according to experts from the International Monetary Fund (IMF), the Ministry of Finance of the Caribbean country reported. 

“Looking ahead, there are reasons to expect that the Dominican Republic can maintain its rapid growth. IMF staff anticipate potential growth of 5% per year, which is similar to the 50-year average,” the IMF’s experts said.

“The Dominican economy has been one of the most dynamic and resilient in the Americas in the last two decades and has experienced a remarkable recovery after the pandemic, supported both by the solid policies adopted by the authorities and by positive side effects of the global economy,” according to the Dominican Ministry of Finance statement. 

It also highlights the country’s remarkable and rapid progress in terms of income convergence, which means the reduction of differences between the richest and poorest economies. 

“The Dominican Republic has exhibited the highest average convergence speed, or blue change, in Latin America in the last 50 years,” according to IMF’s experts, who detail that in that time this speed has increased from an average of 3% points to almost 8% points per decade. 

“After the last visit to the Dominican Republic by an IMF delegation last June to gather information and analyze the situation and economic policies with the authorities, the IMF recommended focusing its short-term policies on maintaining macroeconomic and financial stability and advancing with structural reforms to promote inclusive and resilient growth,” according to Dominican Republic Ministry of Finance statement.