In Latin America, inflationary pressures remain high, influenced by the significant increase in international prices of raw materials and distortions in supply chains.
According to the publication of central bank of the Dominican Republic (BCRD), to counteract high inflation, the region’s central banks have been implementing monetary normalization plans, making increases to their monetary policy interest rates (TPM).
Domestic economic activity maintains its good performance, growing 5.6% during January – May 2022. As a reflection, private credit continues to show high dynamism, expanding around 13.0% at the end of June 2022.
In the labor market, employment has recovered to levels similar to those registered prior to the pandemic. Likewise, a reduction in the open unemployment rate is observed, reaching 6.4% during the first quarter of the year.
Additionally, international reserves have been strengthened, exceeding 14.4 billion dollars, above the metrics recommended by the IMF, while maintaining the relative stability of the exchange rate.
Despite the complex environment, the outlook for the Dominican economy remains positive, predicting one of the highest growth rates in the region, while inflation would gradually converge to the target range of 4% ± 1%.
