Daniel Toribio questions analysis on public debt reduction
Economist and Fuerza del Pueblo leader, Daniel Toribio, urged putting recent official statements regarding the decrease in public debt in the Dominican Republic into perspective. According to Toribio, using the year 2020 as a benchmark to measure this indicator is misleading due to the extraordinary conditions the pandemic imposed on the national economy.
Toribio explained that the debt-to-GDP ratio is a mathematical variable sensitive to both the numerator and the denominator. During the health crisis, the Gross Domestic Product (GDP) suffered a significant decline, while state indebtedness increased to cover emergency expenses. This scenario caused an automatic increase in the debt percentage, even though the growth of the liability was not the only determining factor.
With the subsequent economic recovery, the denominator grew again and the percentage went down. That is positive, but it does not mean that the State owes less money.
Daniel Toribio, economist and political leader
Official figures reveal increase in nominal amount
To support his position, the former official cited data from the General Directorate of Public Credit, highlighting that the absolute amount of debt has maintained an upward trend. The key points noted by the economist include:
- At the close of 2025, the Non-Financial Public Sector debt stood at US$61,549.9 million.
- By July 31, 2026, that figure climbed to US$67,827.8 million.
- In just seven months, the debt recorded an increase of over 10%, equivalent to an additional US$6,277.9 million.
Toribio emphasized that it is fundamental to distinguish between the percentage fluctuation relative to GDP and the growth of the real debt balance. In his view, comparing the current financial situation with the peak recorded in 2020 offers an incomplete picture if other critical factors such as state revenue and the cost of debt service are not analyzed.
Finally, regarding the 34% growth in public investment announced by the authorities, the economist pointed out that this figure should be interpreted with caution, as it starts from historically low execution levels. For Alofoke Deportes, Toribio’s analysis underscores the importance of evaluating the country’s fiscal health with a comprehensive view that includes the actual pace of indebtedness and the State’s repayment capacity.
