In 2025, the Dominican Republic faces economic challenges including
slower growth in early 2025 and a rising fiscal deficit, but expects future growth to pick up. Social and human rights issues persist, such as a rise in violent crime in urban areas, ongoing challenges with child abuse, and discrimination in birth registration for some children, particularly those of Haitian descent. Additionally, climate change poses a significant threat to the country's infrastructure, health, and agriculture.
Economic challenges
Economic slowdown: Growth slowed in late 2024 and the first half of 2025 due to global uncertainty and tighter financial conditions.
Fiscal deficit: The fiscal deficit was projected to increase to 3.4% of GDP in 2025 before gradually declining.
Electricity sector reform: Continued structural reforms, particularly in the electricity sector, are crucial for boosting long-term growth and resilience.
Social
and human rights issues
Increased violent crime: Urban areas like Santo Domingo and Santiago are experiencing an increase in violent crime, including armed robberies and assaults, with a rise in incidents involving foreigners.
Petty theft: Petty theft, such as snatch-and-run phone and wallet thefts, has significantly increased, especially in tourist-heavy areas.
Child welfare: Child abuse remains a serious problem, and the government has faced challenges in effectively enforcing laws against child, early, and forced marriage.
Birth registration discrimination: Some mothers have reported difficulties registering their children's births, especially in couples with a Dominican father and a Haitian mother who lack proper documentation.
Corruption: While some anti-corruption measures have been implemented, issues like nepotism and a lack of criminal penalties for procurement fraud remain concerns.
Environmental challenges
Climate change impacts: Climate change is expected to increase the frequency of natural hazards and negatively impact health, infrastructure, ecosystems, and crop yields.
Disaster preparedness: The country is prone to hurricanes, tropical storms, earthquakes, and flooding, requiring ongoing disaster preparedness and response efforts.
Other
issues
Immigration: The Dominican Republic continues to grapple with the influx of Haitians fleeing violence and instability in their country, leading to deportations and complex social issues.
In 2025, the Dominican Republic faces several persistent challenges, notably public security concerns, a struggling public health system, pervasive corruption, and complex socio-political tensions with neighboring Haiti. Economically, the country is navigating a temporary slowdown and working on essential fiscal and energy reforms.
Key Challenges in the Dominican Republic in 2025
Crime and Security: Violent crime remains a concern, even in tourist areas, prompting the U.S. Department of State to advise increased caution. Petty crimes like pickpocketing and credit card fraud are also common. Authorities recommend vigilance, avoiding displays of wealth, and using reputable transport services.
Public Health System: The public health system is underfunded and deteriorated, with spending at less than half of the World Health Organization's recommendation. The limited availability of services is a primary issue for Dominican nationals, with recent data debunking the myth that migrants are the cause of the strain.
Governance and Corruption: Pervasive corruption continues to undermine state institutions and the rule of law. Foreign investors cite a lack of transparency, inconsistent judicial decisions, and bureaucratic hurdles as key challenges in the business climate. The government is working on a national anti-corruption strategy in coordination with the OECD.
Haiti Relations and Migration: The ongoing crisis in Haiti has created significant challenges for the Dominican Republic, including managing migration flows and security along the shared border, which remains closed. The Dominican government has conducted mass deportations of Haitians, including those of Haitian descent who may have legal claims to residency, which has raised human rights concerns from international organizations.
Economic Adjustments: The economy experienced a slowdown in the first half of 2025 due to global uncertainty and tighter financial conditions. While growth is projected to pick up, the country faces challenges in implementing key structural reforms, particularly in the underpriced and heavily subsidized electricity sector, which poses fiscal risks.
Natural Disasters: The Dominican Republic is highly vulnerable to natural disasters such as hurricanes, floods, and earthquakes. These events pose ongoing risks to lives, livelihoods, infrastructure, and government finances. A nationwide power outage in November 2025 due to a "cascade of failures" highlighted the vulnerability of the power grid to system failures and weather events.
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The Dominican Republic Problems are caused by sharing a border with Haiti.
Norb Leahy, Dunwoody GA Tea Party Leader
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