Dominican Republic public debt remains above pre-pandemic levels

While the government highlights a reduction in public debt as a percentage of GDP compared to pandemic-era peaks, a comparison with 2019 levels reveals that debt remains approximately eight percentage points higher than pre-pandemic levels. In 2019, debt stood at roughly 40.4% of GDP, whereas it is projected to reach around 48% by 2026.

Beyond the debt-to-GDP ratio, the fiscal pressure is increasingly measured by the proportion of public revenue used to service interest. In 2019, interest payments absorbed approximately 20 pesos for every 100 pesos of central government revenue. This figure is expected to rise to approximately 24 pesos by 2026. When including transfers to the Central Bank for recapitalization and quasi-fiscal deficits, the total financial burden on public finances is even higher, rising from 22.9% of public revenue in 2019 to approximately 26% by 2025.