News: Dominican Republic Affirmed as BB-!
By Fitch Ratings - For Complete Article: Click Here
Fitch Ratings is a leading provider of credit ratings, commentary and research for global capital markets. And Fitch as of this year that passed of 2022 have issued Dominican Republic’s rating at BB-. Describing many key points of why Dominican Republic is getting good grades even on difficult times in worldwide economy:
Stable Outlook: Dominican Republic's ratings are supported by a track record of robust economic growth, a diversified export structure, high per-capita GDP and social indicators, and governance scores that compare favorably to peers' after sustained improvement in the past decade. They are constrained by fiscal weaknesses including a high interest burden and subsidization of a loss-making electricity sector, improved but still relatively narrow external liquidity buffers, lingering weaknesses in the macroeconomic policy framework, and heavy sovereign reliance on external bond market financing that could pose a vulnerability amid tighter global conditions.
Resilient Activity: Fitch projects real GDP will grow 4.8% in 2022, above the 'BB' median of 4.2%, reflecting a strong carryover effect from 2021 and intra-year momentum that has moderated but been resilient to global shocks. A booming tourism sector (arrivals have surged past their 2019 levels) has led growth this year, while domestic demand has cooled somewhat but remains supported by a strong labor market, high credit growth, and a robust investment pipeline. Fitch projects growth will decelerate to 3.7% in 2023 as a result of the global economic slowdown and the lagged effect of monetary tightening, but remain broadly resilient given favorable investment dynamics. Investment/GDP above 30% is the highest in the Latin America and Caribbean region, supporting strong medium-term growth prospects.
Please review more points of it in the complete Fitch publication!
