Dominican Republic : Request for Purchase under the Rapid Financing Instrument-Press Release; Staff Report; and Statement by the Executive Director for the Dominican Republic
Author/Editor:
International Monetary Fund. Western Hemisphere Dept.
Publication Date:
May 7, 2020
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Summary:
The Dominican Republic has enjoyed a prosperous decade with high growth, low inflation, a relatively strong external position and significant gains in poverty reduction. While the economy was strong, it was highly vulnerable to the outbreak of the COVID-19 pandemic as tourism is one of the most important activities. As the pandemic advanced and travel restrictions intensified globally, the Dominican economy lost an important source of foreign exchange and employment. Weaker domestic activity is having a negative impact on tax receipts while the government needs to provide additional health services. This is creating budgetary pressures that will require additional financing. Similarly, as businesses struggle, their ability to service their credit lines would be diminished, putting a strain on the financial position of banks.
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