Rising Covid-19 Cases May Further Undermine Dominican Economy

• Economic activity in the Dominican Republic will contract for the first time in decades in 2020 as the coronavirus pandemic drives a decline in private consumption. Weak global demand for Dominican goods and services will persist despite a reopening of the country’s borders.
• The Dominican government’s fiscal stimulus will provide limited economic support while president-elect Luis Abinader upholds the investor-friendly policies of his predecessor to bolster growth.
• Fitch Solutions maintain its forecast for real GDP to decline 4.7% y-o-y in 2020, though they highlight downside risks presented by an uptick in active Covid-19 cases.

(Source: Fitch Solutions)