The local manufacturing industry registered a significant increase in the volume of sales, production and exports during the month of Marchas recorded by the Monthly Index of Manufacturing Activity (IMAE), which coincides with the monthly indicator of economic activity published by the Central Bank (BCRD), highlighting the industrial sector among the activities that contribute the most to the growth of the Dominican economy.
The Dominican government through the Ministry of Industry, Commerce and MSMEs has prioritized public policies to boost the local manufacturing industry, which is the economic activity dedicated to the transformation of different raw materials into basic necessities such as food, beverages, and others such as textiles, clothing and tobacco.
You can read: How will the US rate hike affect the DR economy?
According to the BCRD, an increase of 4.2% was registered in terms of added value, highlighting the performance shown in March with an increase of 3.9% in line with the monthly indicator compiled by the Association of Industries of the Dominican Republic (AIRD), when the index reached a value of 63.7 in the month of Marchshowing increases in the variables of Inventory of raw materials, production volume and sales volume above the 62.8 of the previous month and well above 50.0, the threshold from which the outlook for the sector is considered positive and remains at that line since the new government took various initiatives.
Since the end of 2020, the government, committed to economic recovery, has implemented policies to encourage the country’s productive sectors. The fruits of these measures can be seen with the good performance of the local manufacturing sector for the year 2021 and the first quarter of 2022.
In 2021, the total sales of local manufacturing grew by 31.5% compared to 2020 and 29.5% compared to 2019. This same stellar behavior continued for January-February of the year 2022, with sales growing 23.1%, compared to the same period of the previous year. In relation to exports, in 2021, they increased by 30.7% compared to 2020 and in 18.0% compared to 2019, highlighting plastics, sugars; iron, steel and cement.
It may interest you: Dominican economy grew 6.1% first quarter of this year
Likewise, the local manufacturing industrialists, in the last 20 months, have been reiterating their confidence in the prospects and conditions to produce industrial goods and invest in the sector. This confidence is visible in the planned investments, which will amount to $79,000 million in 2022, of which 50% are already in execution. These investments include the construction of new warehouses for the production of construction materials, chemical products, furniture, food and beverages.
Regarding jobs, the local manufacturing sector has recovered 97% of the pre-pandemic level of employment, highlighting the sectors: pharmaceuticals, plastics, soaps and detergents, chemicals, iron, among others.
