A N N UA L
R E P O R T
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THE DOMINICAN REPUBLIC
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The COVID-19 pandemic had an adverse effect on the economy. The government estimates that real GDP growth contracted by 6.7% in 2020 after recording a solid performance of 5.1% in 2019. The fiscal authority enacted several policy measures in March to help counter the effect of the COVID-19 pandemic on households, in particular the most vulnerable. The government spent more than RD$32 billion to assist low-income persons with food and individuals who had lost their jobs because of the pandemic. Unemployment is estimated to have increased to 14.3% at the end of 2020 compared to 10.4% in 2019.
into the presidency. The MRP is part of a coalition government that has control of the House. Mr Abinader continued the spending measures adopted by his predecessor, Danilo Medina, to help stymie the impact of the COVID-19 pandemic on the economy. As a result, spending in 2020 expanded to RD$1,002.0B (22.5% of GDP), a change of RD$238.9B or 31.3% compared to 2019. At the same time, revenues fell by 3.7% to $632.3B (14.2% of GDP), resulting in a fiscal deficit of 8% of GDP. Because of the widening of the deficit and contraction in GDP, debt to GDP increased to 54% compared to 40% in 2019.
There was a changing of the guard in the presidential election held in August 2020, which saw Mr Luis Abinader from the Partido Revolucionario Moderno (Modern Revolutionary Party, MRP) being thrust
The Central Bank of the Dominican Republic (CBDR) complemented the fiscal authorities’ action through a series of measures. In March, the CBDR cut the policy rate and adopted several liquidity measures to support
