PLD labels Dominican economic policy a “failure,” cites stagnation and rising debt

Santo Domingo.- The Dominican Liberation Party (PLD) delivered a scathing assessment of President Luis Abinader’s economic stewardship, branding it “inefficient” and “mismanaged” compared to the previous administration. Luis Reyes, the PLD’s economic affairs secretary, appeared on the nightly broadcast “Propuesta de la Noche” to present data he says reveals deep flaws in the government’s fiscal and monetary strategy.

Reyes pointed out that although public spending levels under Abinader mirror those of his predecessor, Danilo Medina, actual investment has fallen sharply. “Despite injecting over RD$64 billion into the financial system, commercial interest rates remain stuck between 12 and 13 percent,” he said. “That chokes off credit to businesses and consumers, stalling growth from mid-2024 onwards.”

The PLD spokesperson also warned that personal debt is squeezing the middle class. He noted a more than RD$100 billion surge in credit-card balances over the past five years, driven by “unsustainable” interest rates. Reyes criticized the 2025 budget for its restrictive framework under the Fiscal Responsibility Law, arguing that it hamstrings the state’s ability to kick-start the economy.

Reyes reserved his harshest criticism for public works execution. By the end of June, only 22 percent of funds earmarked for new projects had been spent, he said. “Public investment should power economic dynamism,” Reyes insisted. “To see such a low absorption rate in the critical first half of the year is simply unacceptable.”

President Abinader has attributed sluggish growth to global headwinds, but Reyes dismissed that defense as “simplistic.” He argued that structural missteps—faulty policy choices, inadequate stimulus and rising debt burdens—bear far more responsibility than external factors. As the general election approaches, the PLD’s charges set the stage for a heated debate over where the Dominican economy is headed next.