In an international context marked by geopolitical tensions and volatility in energy markets, the Minister of Finance and Economy, Magín Díaz, warned about the challenges facing the Dominican Republic in the short and medium term, while highlighting the country’s economic resilience, the proactive action of the Government in the face of the current situation and the importance of fluid coordination between the public sector and industry to sustain economic growth.
The statements were offered during the Industrial Meeting organized by the Association of Industries of the Dominican Republic (AIRD), where the global situation and its effects on the local economy were addressed, in a space for dialogue between the public and private sectors aimed at building a common strategic framework to strengthen macroeconomic stability and transform the productive apparatus.
During his conference titled “International Economic Situation and Impact on DR”, Minister Díaz warned that the world is going through “the biggest disruption in the history of the oil market”, which directly impacts economies like the Dominican one.
He explained that the price of WTI crude oil has experienced an increase of nearly 80% between January and April, which limits the margin for maneuver of economic policy. In that sense, he cited evaluations by the International Monetary Fund (IMF) on the impact of oil on energy-importing economies.
Despite this scenario, he highlighted that the Dominican Republic maintains stable macroeconomic indicators, with inflation below the regional average and a favorable growth projection.
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During his presentation, he emphasized that the Government is clear that its objective is to seek a balance to contain the impacts of the crisis on inflation, fiscal balance, and growth.
“The Government has chosen an adjustment speed that combines fiscal responsibility with social sensitivity,” said Díaz, emphasizing that the challenge is to find a politically and socially viable balance in the face of a major external shock.
As a demonstration of governmental responsibility, he indicated that unlike other countries such as Chile, where diesel and gasoline have increased between 62 and 32%, the Dominican Republic has the lowest percentages of increase in these fuels in the region, with accumulated figures of 13.6% and 11.4%, respectively.
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The minister also revealed, if necessary, that the Government has a margin of up to RD$45,000 million in additional spending without violating the primary spending rule, although he warned that this could imply an increase in the fiscal deficit. However, he considered that, given the magnitude of the external shock, the priority is economic stability.
“Rating agencies will value countries that achieve rational management in this situation, combining controlled deficits, targeted subsidies, and prudent macroeconomic policies,” he said.
In that sense, he highlighted current strengths such as high international reserves, exchange rate stability, a solid financial system, as well as the dynamism of sectors such as tourism, remittances, exports, and foreign direct investment. In addition, he pointed out that the economy grew 4.1% in the first quarter and that tax revenues remain above the budgeted amount.
Position of industrialists
For his part, the president of AIRD, Julio Virgilio Brache, emphasized that the country cannot limit itself to reacting to global changes, but must anticipate and consolidate its position as a competitive and resilient economy.
“The moment demands removing obstacles, correcting distortions, and building a more agile, predictable, and favorable environment for production,” he expressed, advocating for a fiscal policy that simplifies processes, encourages compliance, and eliminates obsolete tax burdens.
Industrial leadership valued fiscal discipline as a pillar of economic stability, but insisted on the need to improve the quality of public spending and prioritize investment in infrastructure and productive development.
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The activity concluded with a panel moderated by Mario Pujols, executive vice president of AIRD, in which the minister answered participants’ concerns about the country’s economic and fiscal outlook.
