Dominican Republic, the Caribbean's Structural Exception

Latinvex, by Walter T. Molano (BCP Securities), June 17, 2026

Walter Molano, head of research at BCP Securities, describes the DR as the Caribbean's most structurally stable case. The economy has grown about 5% a year for 15 years, with the fastest per capita income convergence in Latin America and the Caribbean over that period, and it has never lost access to international financial markets. Moody's upgraded the country to Ba2 in August 2025, S&P keeps it at BB stable and Fitch at BB- stable.

External accounts are solid. International reserves closed 2025 at US$14.7 billion, equivalent to 5.6 months of imports. The current account deficit fell from 3.1% of GDP in 2024 to 1.2% in 2025. Foreign direct investment hit a record US$5 billion, directed mainly to energy, real estate and tourism. Remittances grew 9.3%, and more than 80% come from the United States.

As challenges, the author mentions the cost of electricity subsidies, the need for tax reform to reach investment grade, and the situation in Haiti. His conclusion is that the DR remains one of the most reliable credits in the region, with fundamentals that set it apart from its Caribbean neighbors.

Read the original article: Dominican Republic: The Caribbean's Structural Outlier