The delegation of the International Monetary Fund (IMF) that evaluated the economy, as part of the consultation of Article IV of the Dominican Republic 2021, suggests implementing several reforms that guarantee sustained growth that is inclusive.
The IMF mission, headed by Esteban Vesperoni, head of the Dominican case, said that the application of well-sequenced reforms would promote sustained and inclusive growth, supported by an expansion of the tax base, elimination of tax exemptions, and the approval of financial responsibility law.
These reforms should include policies to recapitalize the central bank, achieve a sustainable electricity sector, and strengthen regulations in the financial industry, including financial supervision of cooperatives.
In addition, it increases the effectiveness and targeting of social support programs and facilitates job placement, and strengthens the application of the social security law.
“The Dominican Republic has been one of the most dynamic economies in the region during the last decade in the context of robust growth, macroeconomic stability, a solid external position and a notable improvement in social indicators. This performance was supported by the continuous improvement of macroeconomic frameworks, investment climate, and financial stability,” concluded Vesperoni.
A team from the International Monetary Fund led by Vesperoni held virtual meetings from April 21 to May 5, 2021, with the authorities, development agencies, and representatives of the private sector in the Dominican Republic to prepare the Article IV Consultation of 2021, explains a document from the Central Bank.