The International Monetary Fund, IMF, predicted today that the Dominican Republic will be the Central American nation that will grow the most in 2025.
In his most recent report The organization projected economic growth for the Dominican Republic for the coming year of 5.0% the highest in Central America, followed by Nicaragua with 3.8% and Guatemala, with 3.6%.
These figures reflect the total consolidation of the recovery of the Dominican economic apparatus, pre-pandemic, which according to the Central Bank It corresponded to 5.1% in 2019.
He IMF andHe explained that this progress is due to the correct application of monetary policies that has led to a successful decrease in inflation.
Central Bank
As the study highlights, one of the factors that have led to the economic increase is the good application of monetary policies, including the reduction in the interest rate that the Central Bank of the Dominican Republic applied a few weeks ago.
The reduction was 25 basis points, equivalent to 6.50% annually.
The Central Bank attributes the recovery of the economy to the performance of activities such as construction (4.4%) and free zone manufacturing (6.5%), income from exports US$6,404.1 million from January to September of this 2024, and the take-off of the tourism sector, one of the most affected by the health collapse caused by the Coronavirus and which recovered masterfully.
IMF recommendations for Central America
Although the improvement in the economic systems of the region stands out, the entity recommends a series of measures to promote growth and maintenance of the Gross Domestic Product, GDPin the long term, among which he mentions:
“Improving governance, by strengthening the rule of law, improving government effectiveness and combating crime, is a priority that cuts across all areas of growth.”
“Promote competition and encourage foreign trade”
“Expand public investment and make it more effective” , among other suggestions.
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