Emerging Insight: Dominican Republic: Third time's the charm

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Emerging Insight: Dominican Republic: Third time's the charm

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Emerging Insight

Dominican Republic: Third time's the charm

Key takeaways 07 July 2026

GEM Fixed Income Strategy &• The approval of the economic and tax plan is positive for public finances as it could

Economics

help to increase revenues. Global

• There is a risk that new revenues will be consumed by subsidies and interests instead

of education or infrastructure. Pedro Diaz Caribbean Economist

BofAS• Sov Strategy: we maintain our Overweight EXD recommendation on fiscal reform, +1 646 855 2575

lower oil, resilient tourism. pdiaz2@bofa.com

Alexander Muller

Andean(ex-Ven) Carib Economist

By Pedro Diaz, Alexander Müller and Lucas Martin BofAS+1 646 855 5750

Exhibit 1: Tax revenues and expenditures as % of GDP (12m-sum) alexander.muller@bofa.com

Tax revenues increased in the past years alongside interest payments and subsidies Lucas Martin, CFA

Sovereign Debt FI Strategist

16 5 BofAS

+1 646 855 1731

15 lucas.martin@bofa.com

4 Jane Brauer

14 Sovereign Debt FI Strategist

BofAS

13 3 jane.brauer@bofa.com

12 David Hauner, CFA >>

Global EM FI/FX Strategist

2 MLI (UK) 11

david.hauner@bofa.com

1 Claudio Irigoyen

9 GlobalBofAS Economist

8 0 claudio.irigoyen@bofa.com

2019 2020 2021 2022 2023 2024 2025 2026 See Team Page for List of Analysts

Tax revenues, % GDP Interests, % GDP rhs

Other subsidies, % GDP rhs Electricity subsidies, % GDP rhs

Source: BofA Global Research, DomRep FinMin

BofA GLOBAL RESEARCH

Dominican Republic in Focus

On June 18, the Congress approved the economic and fiscal plan that seeks to increase

fiscal revenues by about 0.5-0.6 pp of GDP. Government approved a fiscal reform after

two failed attempts (2020 and 2024). This is positive for fiscal accounts and it could be