The fiscal deficit of the Dominican Republic will be maintained below 4% of the Gross Domestic Product (GDP) in 2026, according to the projections presented by the Minister of Finance and Economy, Magín Díaz, during his intervention in the program La Agenda Semanal.
Current projection and regional comparison
In the revised reformulated budget review, the government projects a deficit equivalent to 3.2% of GDP for 2026. Díaz explained that the International Monetary Fund (IMF) expects an average deficit of 4.7% in the region, while in the Dominican model the figure remains significantly lower.
Future perspectives and adjustments
The minister indicated that the deficit estimation will probably be revised as the data is consolidated, but assured that it will remain clearly below 4% of GDP. The expenditure direction, according to Díaz, has been adapted to mitigate the international crisis, especially through the resources allocated to contain the impact of international prices of fuels.
Impact on the economy and inflation
The control of the deficit is interpreted as a sign of fiscal stability in the midst of the global conjuncture. The Ministry also projects an inflation rate below 5% by the end of 2026, which contributes to maintaining the competitiveness of the Dominican economy.
Context and relevance
The management of the fiscal deficit is essential for the country’s credibility before international organizations and to avoid an increase in public debt. The Dominican Republic’s ability to maintain its finances under control can be translated into lower pressure on interest rates and a more favorable environment for foreign investment.
Credits: deultimominuto.com
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