DOMESTIC POLITICS: In contrast with the period 2004-09, popular support for Mr Fernandez and his Partido de la Liberacion Dominicana (PLD) government will be much lower in 2010-11, as public frustration with inadequate public services, corruption, the economic downturn and rising crime increases. The administration will face the ongoing challenges of dealing with an energy crisis and financing current-account and fiscal deficits in still-challenging economic conditions. Congressional elections in May 2010 will keep the government focused on political issues, and structural reforms needed to improve the functioning of the energy sector and government bureaucracy will be piecemeal and slow, despite commitments under a new stand-by arrangement with the IMF. Popular demonstrations, relatively rare until the onset of the economic crisis, seem set to continue throughout most of 2010-11. The perception of mismanagement and numerous allegations of corruption will have negative political ramifications for the PLD. The main opposition party, the Partido Revolucionario Dominicano (PRD), is debilitated by internal squabbling and an image of incompetence, but appears to have rallied around party leader and probable presidential candidate, Miguel Vargas Maldonado. Although still far from agreeing on a coherent platform, the PRD should be able to capitalise on the public's discontent and make significant gains towards a majority in mid-term elections in May 2010, altering the balance of power in Congress.

Source: Dominican Republic: Country outlook

Source: Country Forecast Dominican Republic July 2009

Source: EIU Country Data