Dominican Republic

The Dominican economy continues to grow rapidly, buoyed by low energy prices, strengthening labor markets, dynamic investment, and the recovery in the U.S. Lower oil prices have balanced the effects of strong domestic demand on inflation and the external position. The outlook is favorable: the pace of expansion—which averaged around 7 percent over the past three years—is tapering off towards potential, inflation is set to increase to target as commodity prices recover, and a healthy financial sector is well poised to support growth.