According to estimates of the Inter-institutional Technical Committee on Povertythe overall monetary poverty rate fell 2.1 percentage points in 2022. The recovery economy and employment, despite the inflationary scenario, contributed to reducing the number of people and households in a situation of general monetary poverty
The minister of Economy, Planning and DevelopmentPável Isa Contreras, announced that, despite the inflationary scenario, at the end of 2022 monetary poverty in the country fell 2.1 percentage points compared to 2021.
“The estimates made by the Inter-Institutional Technical Committee for Poverty Measurement indicate that general monetary poverty in the Dominican Republic went from 23.9% in 2021 to 21.8% in 2022, for a reduction of 2.1 percentage points,” he said.
He added that in plain terms, despite the consequences of the pandemic and international inflation, 200,000 Dominicans increased their income and were able to acquire a basket of basic goods and services that allows them to live decently, something that they did not achieve in 2021.
This behavior was the result of the good performance of the Dominican economy during the year and the increase in employment. The fourth quarter stands out in particular, in which he said a general monetary poverty level of 19.6% was registered, the lowest ever observed in the country, which represents a milestone.
It may interest you: Reform is urgent so that everyone pays taxes, says tax adviser
“This reduction in the levels of monetary poverty was the result of the strong increase that was verified in employment and in the labor income of people due to the observed economic growth and the impact of the increase in government monetary transfers to poor or vulnerable households. through Supérate”.
According to estimates by the Inter-Institutional Technical Committee on Poverty, the reduction in general monetary poverty would have been 3.6 percentage points higher, had it not been for the higher-than-normal inflation experienced in 2022 as a consequence of the increases in international hydrocarbon prices , food and raw materials. In other words, had it not been for this external factor, 340,000 people would have overcome monetary poverty.
These figures, according to Isa Contreras, are consistent with the behavior of the labor market in the Dominican Republic, which show a drop in unemployment and an upward trend in formal jobs during 2022, as an indication of the good economic performance of the country after the pandemic. This performance, according to estimates of the MEPyDwill continue to be favorable for 2023. However, the informality rate remains high, representing a challenge to improve the working conditions of employed people, as in the rest of the economies of the region.
The minister reiterated, however, that these good results are not enough and emphasized the government’s commitment to redouble efforts to take more advantage of economic growth to improve people’s quality of life, accelerating the creation of decent jobs, improving the quality of public services and confronting inequality.
About the newsletter
In the coming weeks, the Ministry of Economy, Planning and Development (MEPyD) in coordination with the National Statistics Office (ONE) within the framework of the Inter-institutional Technical Committee on Poverty, will be publishing the Official Statistics Bulletin on Monetary Poverty, which will present in greater detail the evolution of poverty in the Dominican Republic for the period 2000-2022, with emphasis on 2021-2022.
