Ministro Economía asegura RD está «saliendo del bache» con elevado crecimiento del PIB

Economy Minister assures RD is “coming out of the pothole” with high GDP growth

The Minister of Economy, Planning and Development (MEPyD), Miguel Ceara Hatton, He assured today that for this 2021 “we are coming out of the pothole” in economic matter, and the challenge from now on is «is reinforce policies that are derived from the paradigm of quality and life ”.

By exposing some remarks and illustrations in graphs, Ceara Hatton indicated in her first point that there has been a high growth of the GDP stimulated mainly by private investment.

At that point, he points out that as of September 2021, the accumulated growth was 12.7%, which implies a growth of 3.6% compared to 2019. «It is expected, conservatively, that for the entire year the economic growth will be 10%. There are projections to October that place the growth of the year above 10% “, he highlighted.

He specified that as of June 2021, the investment explained 65% of growth and 95% of that investment is private. Furthermore, between January and June 2021, private investment grew at a rate 8 times higher than between 2014 and 2020.

«For three consecutive quarters (the last of 2020 and the first two of 2021), the coefficient investment (investment1/ GDP) was located by above 30%.

Job recovery. The official pointed out in his second point, that the amount of workers busy has increased.

“As of October 2021, formal contracted workers exceed the employment level of February 2020. In fact, workers employed in the private sector not only recovered what was lost in 2020 but also compensated for the reduction in formal public employment (-22 thousand) », he stated.

He added that as of September 2021, according to the Central Bank’s Continuous National Survey of the Workforce (ENCFT), only 10,000 formal and informal jobs were missing to recover the total employment lost between February 2020 and September 2021.

In relation to the public deficit, Ceara Hatton dike will be reduced significantly, and cited that as of October 29 there was a fiscal surplus of 5.6 billion o 0.11% of GDP

«It is projected between -1% to -2% but it can even end the year between 0% and -1%. If the public deficit ends in 2021 with -2% of GDP, it implies a fall of -75% compared to -7.9% in 2020. primary surplus«, It indicated.

“The primary balance accumulated at 43 weeks of 2021 is RD $ 130 billion, higher than the amount of interest paid accumulated during the first 43 weeks of RD $ 125 thousand,” he stated.

He pointed out that it is important to note that the reduction in the public deficit has not affected aggregate demand, since it has guaranteed a growth in economic activity of more than two digits «and the level of employment lost in 2020 has practically recovered, due to the fact that investment and private consumption more than offset the reduction in the public deficit.

Price increase. The minister indicated that the accumulated inflation to September is 5.9%, the price increase between September 2020 and 2021 is 7.53%.

«This price increase basically reflects international circumstances such as the increase in raw materials, freight, the price of oil, coal, among others. That is, it is not a problem of the Dominican economy but an international situation, “he said.

He also pointed out that the productive sectors have responded: «The Hotels, Bars and Restaurants sector grew by 31.8% between January and September 2021, construction has grown by 30% for the same period, free zones at 24.2%, local manufacturing at 11.5%, commerce at 11.1%, among other sectors.

International panorama. Finally, when referring to the external situation, Ceara Hatton indicated that it is very favorable, after indicating that foreign exchange earnings have increased above the 2019 level, although imports also increased.

“International reserves have increased and the exchange rate has risen slightly, indicating great stability. The great challenge is to improve public services to improve the real income of the population, “he concluded.

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