Challenges Faced by Re-elected President Luis Abinader in Implementing Economic and Social Reforms in the Dominican Republic

The president of the Dominican Republic, Luis Abinader, secured re-election in Sunday’s elections with a significant majority. He now faces a series of challenges, particularly in the economic and social spheres. The local economy is expected to grow by 5% this year and is projected to double by 2023, establishing itself as one of the fastest-expanding in the region. However, longstanding social debts and inequalities persist, along with issues such as a deficient health system and the expansion of the informal economy.

Abinader had promised a fiscal reform during his campaign, but this has been postponed. Local economists believe that this is a good time, both politically and economically, to implement such reform. Upon assuming power in August 2020, Abinader presented a tax reform plan to address the crisis post-pandemic, but later withdrew it due to criticism. He recently spoke at the Private Enterprise Council (Conep), acknowledging the need for various pending reforms, including fiscal reform and social security system transformation.

Abinader, a 56-year-old economist representing the Modern Revolutionary Party (PRM), won nearly 58% of the votes in the recent elections. He emphasized the importance of major reforms in the next four years and expressed a willingness to engage in discussions to reach a consensus with other political forces. Despite the challenges faced during his first term, the Dominican Republic made significant progress in areas like tourism, foreign direct investment, and remittances.

While the country has seen economic success, it still struggles with issues like generating quality jobs, improving access to basic services, fighting corruption, and addressing citizen insecurity. Abinader will need to continue the fight against corruption and insecurity, in addition to working on job creation and enhancing access to essential services. As he prepares for his next administration, Abinader remains optimistic about the country’s ability to face future challenges and build on its progress.