Paliza: government moves to protect cost of living and economy

Santo Domingo.- The Dominican government is implementing a strategy to mitigate the economic impact of the Middle East crisis stemming from tensions involving the United States, Israel, and Iran, according to Minister of the Presidency José Ignacio Paliza. Following a recent Council of Ministers meeting, the plan is structured around three key pillars: protecting the cost of living through social support measures, strengthening the productive sector to sustain economic activity, and reorganizing public spending to ensure these efforts remain viable.

During a meeting at Funglode with former president Leonel Fernández and members of the People’s Force party, Paliza emphasized the importance of dialogue and national unity to address global challenges. Fernández echoed this sentiment, highlighting the need to safeguard democratic stability and maintain internal cohesion through consensus.

The government noted that the country is well-positioned to face external shocks, citing strong macroeconomic fundamentals such as nearly US$16 billion in international reserves, solid liquidity, and access to financing. It also secured energy supplies in advance and placed 2026 public debt under favorable conditions before the crisis escalated.

To cushion the population, authorities have spent over RD$8 billion subsidizing fuel over five weeks, limiting the domestic impact of global oil price increases. Additionally, a RD$1 billion subsidy for fertilizers has helped offset rising agricultural costs, preventing significant increases in basic food prices.