Luis Reyes, Secretary of Economic Affairs of the Dominican Liberation Party (PLD), made an urgent call to strengthen policies that protect the population against global economic risks. On the program “El Despertador”, the economist highlighted how the rise in oil prices, driven by conflicts in the Middle East, puts pressure on the Dominican economy.
The barrel of oil recently surpassed 80 dollars, according to international market data, a level that drives up transport and electricity costs. Reyes specified that a prolonged maintenance of these prices could force an additional electricity subsidy of up to US$1 billion, burdening public finances.
Direct impact on the Dominican cost of living
Global economic risks translate into imported inflation. The energy increase makes basic goods more expensive, while the government absorbs part of the blow to avoid drastic fuel price hikes. Historically, similar episodes, such as the 2008 crisis or tensions in 2022 due to Ukraine, have raised Dominican inflation above 8%, according to the Central Bank.
Effects on tourism, remittances, and exports
Reyes warned that global inflation leads central banks, like the Federal Reserve, to raise interest rates, slowing down the global economy. This threatens the Dominican pillars: tourism, which accounts for 16% of GDP; remittances, at US$10 billion annually; and manufacturing exports.
Recommendations to face global economic risks
- Adopt austerity in public and household spending, rationalizing resources.
- Reorient investments toward infrastructure to generate jobs.
- Prepare for adverse scenarios, as warned by the IMF in its October 2025 report on energy volatility.
The IMF projects global growth of 3.2% for 2026, but with downside risks due to conflicts. In the Dominican Republic, GDP grew 5% in 2025, but experts such as economist Edmund Vera agree on the need for solid fiscal reserves.
Faced with these global economic risks, Luis Reyes insists on prudence and preventive measures. The State must prioritize efficiency, while families adjust budgets in the face of uncertainty. This vision highlights the vulnerability of emerging economies like the Dominican one to external shocks.
In a context where oil fluctuates due to tensions in the Middle East, strengthening protective policies becomes essential to mitigate global economic risks and sustain the well-being of Dominicans.
