While international organizations predict an economic recession for almost all the countries of the world due to the inflationary pressure that has led the central banks to strengthen its monetary measures and contract the liquidity expansionThe Dominican Republic exhibits flattering official statistics that place it as a benchmark against other economies in the region.
The Governor of central bank of the Dominican Republic (BCRD), Hector Valdez Albizuconsidered yesterday that the country will probably be the second country in the Latin American region with the best economic growth, after it manages to contain the inflationary pressure.
When submitting a report on economic performance during the first nine months of this year, reported that the growth of the economy in that period reached 5.4%with a declining inflation that stood at 8.63% for last month and with growth rates of productive activities.
Valdez delivered his speech at an event to celebrate the 75th anniversary of the monetary entity, which was celebrated with a thanksgiving mass in the auditorium of the Central bank.
projections
Taking into consideration the momentum that the economy has maintained as of September of this year, the forecasts of central bank indicates that the growth of the real gross domestic product (GDP) would be in the range of 5.0-5.5%that is, around potential rhythm of the economy.
He specified that international organizations such as the International Monetary Fund (IMF) and the Economic Commission for Latin America and the Caribbean (ECLAC) They also maintain a positive outlook for the Dominican economy, projecting an expansion of more than 5.0% by the end of 2022.
Regarding the nominal GDP, he said that it is expected to reach 112,000 million dollars, which, together with the management of public finances by Tax authorities and the exchange rate stability observed this year, have been determining factors for the debt of the consolidated public sector as a proportion of GDP to be below 60%.
Inflation
Governor and President of the Monetary Board indicated that it is expected that inflation end 2022 around 7.0% and it would continue to decline in year-on-year terms in the following months to converge to the target range of 4.0 ± 1.0% in the first half of 2023.
When analyzing the data from 18 Latin American economiesit is evident that the interannual inflation rate of the Dominican Republic is lower than that of 11 countries in the region.
This means that only six countries report year-on-year inflation below the Dominican rate, of which three are dollarized economies: Panama, Ecuador and El Salvador, Valdez reported.
“As I stated during my participation in the 2022 Annual Meetings of the IMF and the World Bank in Washington, DC, central banks must remain focused on controlling inflation, since without price stability, the benefits of growth are at risk of being lost. eliminated, generating a negative social impact”Governor of the Central Bank
external sector
The forecasts for the external sector point to the flows of foreign direct investment would reach 3,800 million dollars at the end of 2022. Similarly, it is forecast that this year would close with exports totals of more than $14 billion, “an all-time high,” he said.
As for the remittancesthe BCRD calculates that they will be close to 10,000 million dollars and the tourism revenue will be located above 8,500 million dollars.
“All this, added to the income for other services, estimated at about 3,000 dollars, would lead to ending the year with income of foreign exchange higher than 39.3 billion dollars”, highlighted the governor.
