Dominican Republic economy shows divide between macro growth and micro reality

Economist and former Finance Minister Daniel Toribio has highlighted a disconnect between the Dominican Republic’s macroeconomic indicators and the microeconomic reality faced by its citizens. While macroeconomic data shows growth in sectors such as exports, foreign direct investment, tourism, and remittances, Toribio argues that these figures do not reflect the daily struggles of the population.

Toribio noted that many citizens struggle to cover monthly expenses with their current income, often resorting to debt to afford basic goods and services. He specifically pointed to inflation as a major issue; while the Central Bank has set an inflation target of 4% ±1%, rates have remained above 5% for three months. This inflation is particularly impactful as it is driven largely by rising costs in food and non-alcoholic beverages, directly affecting household budgets at markets and supermarkets.