Investment bank Morgan Stanley affirmed that the Dominican Republic has exhibited rapid and solid economic growth and a positive fiscal trajectory that places it as one of the most attractive emerging markets.
“A strong recovery in tourism, a record level of remittances, high income rates, along with energy sector reforms, leave us with a positive outlook on the Dominican Republic,” the firm said in a report titled “A Bright Spot in Emerging Markets”.
In the report, circulated this January 31, the bank pointed out that the recovery achieved last year – around 11% of GDP – will be maintained in 2022, placing the country with one of the highest growth rates in the region.
According to a press release from the Ministry of Finance, Morgan Stanley detailed that the factors that will continue to drive Dominican growth this year will be tourism, construction, foreign direct investment and the consumption of high remittance flows.
The multinational bank highlighted that the handling of the health crisis caused by COVID19 was better than that of other countries in the region, which allowed the important growth of tourism.
At the same time, he indicated that the new variants of the coronavirus have not caused notable changes in the number of tourists.
In fiscal matters, Morgan Stanley assured that the country is one of the few sovereign issuers with good possibilities of registering a reduction of its public debt this year.
The Dominican Republic “has a lower debt burden than most BB-rated countries,” the multinational said in its report.
The firm said that President Luis Abinader has been clear in his commitment to fiscal responsibility, which together with the approval of an energy sector reform last year, are determining factors in increasing confidence in the country.
Finally, Morgan Stanley estimates that the country has room to improve its risk rating within the BB range, and they do not expect it to be downgraded, remaining at the current BB-.