Magín Díaz: government acts to cushion Iran crisis impact

Santo Domingo.- The Minister of Finance and Economy, Magín Díaz, stated that the Government has a strategy in place to safeguard the national economy amid global uncertainty driven by the crisis in Iran and rising oil prices. He emphasized that maintaining macroeconomic stability is key to resisting external shocks and assured that authorities are working to cushion the impact of higher fuel costs and guarantee the supply of essential goods.

He explained that the Government remains in constant coordination with institutions such as the Ministry of Agriculture and the Central Bank to preserve economic and social stability. As a preventive step, a significant portion of the 2026 national budget financing was secured early in the year, creating fiscal space to redirect resources toward vulnerable sectors if needed. He also highlighted the country’s solid credit standing and sufficient financial system liquidity, which allow access to international funding under favorable conditions.

Díaz noted that while rising oil prices can affect electricity and other sectors, the diversified energy matrix should reduce the impact compared to past crises. He added that this situation follows multiple global shocks, including the COVID-19 pandemic, the Russia-Ukraine war, trade tensions, and high global interest rates.

On fiscal policy, the minister acknowledged that the structural deficit—around 3% of GDP—has historically limited public investment. However, he stressed the need to increase infrastructure spending to support economic growth and private sector development, while also strengthening measures to combat tax evasion and boost government revenues.