Dominican Republic to end national curfew
The Dominican Republic will end its three-month-long curfew today, despite one out of every 500 people testing positive for COVID-19 including leading presidential candidate Luis Abinader.
In part due to the island’s tourist attractions, the Dominican Republic has become one of the biggest viral hotspots in the Caribbean, with tens of thousands of confirmed cases since March.
The virus poses a serious threat to the Republic’s recent growth trajectory, which had attained the quickest regional rate since 2014. The decline in tourism and remittances—which collectively account for a significant portion of the country’s total GDP—necessitated a $650 million emergency aid package from the IMF in April.
Significant financing gaps remain despite assistance from international creditors, particularly within the nation’s health system. Inflows from tourism and remittances are unlikely to resume in the short-run, even with today’s easing. Expect a steep inversion of the Dominican Republic’s recent growth trajectory unless international institutions increase their support.
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