Dominican Republic confronts rising debt and political turmoil

Since taking office in August 2020, the Dominican Republic’s PRM government has faced a series of external shocks—including the COVID‑19 pandemic, the war in Ukraine, and heightened tensions in the Middle East—that have driven inflation, higher commodity prices and a slowdown in the global economy. These factors have compounded domestic fiscal pressures, with the public non‑financial sector debt now amounting to about 48 % of GDP, and debt‑service costs consuming an ever‑larger share of the state budget, limiting spending on infrastructure, security, health and education.

At the same time, the administration’s reform agenda has sparked political controversy. Initiatives such as a broad package of structural reforms, a proposed constitutional amendment, and new legislation perceived as threatening freedom of expression—including changes to the penal code and the solid‑waste law—have met opposition from various sectors, further intensifying the government’s challenges.