Dominican Republic debt rises under Danilo Medina, falls under Luis Abinader

Between 72% and 86% of the Dominican Republic's general state budget has been allocated to operational expenses such as salaries, purchases, subsidies and external debt interest. To finance infrastructure projects, successive governments have relied on borrowing.

During Danilo Medina's administration (2012‑2020) public debt increased from 41% to 69% of GDP – a 68% relative rise, the highest among recent presidents. Luis Abinader (2020‑2026) reduced the debt‑to‑GDP ratio from 68% to 58%, achieving the lowest increase. Leonel Fernández (2004‑2012) lowered his share from 47% to 41% (12% change), while Hipólito Mejía saw only a minor rise.

External debt remains the largest component of state liabilities. Over the period studied, the debt‑to‑GDP ratio averaged about 61% and has stabilized around 60% under Abinader. The analysis cites ten key fiscal indicators, including debt service versus current revenues, contingent liabilities, fiscal pressure, tax elasticity and primary balance. Consolidated public debt surged sharply after the 2008 recession and again due to COVID‑19 spending in 2020.