The executive vice president of the Regional Center for Sustainable Economic Studies (CREES)Miguel Collado di Franco, warned about the negative impact that the slowdown in the growth rate of bank credit in the country has on the productive sectors.
The economist explained that for the Dominican economy to maintain relatively high growth, credit must expand at annual rates above double digits, historically between 12% and 14%, which drives the good performance of the Gross Domestic Product.
However, he expressed concern because the increase in credit last year was barely between 8% and 9%, an unusual figure in recent years. He pointed out that in December 2024 and January of this year growth was below 8%, levels that had not been observed since 2021.
Interviewed by Héctor Herrera Cabral on the D’AGENDA program, broadcast by Telesistema Channel 11 and TV Quisqueya for the United States, Collado indicated that, although the Central Bank authorities project that February will close above 8%, it is still insufficient to generate new capital, jobs and achieve the projected growth goal.
Regarding economic expectations, he considered that, although growth will be higher than the base year, he does not see conditions for GDP to reach 4% as estimated by the authorities. He pointed out that factors such as the persistence of tariffs, the drop in exports from free zones in January, the decrease in imports and the appreciation of the exchange rate of around 5% affect economic dynamism.
The CREES coincides with the projection of the Economic Commission for Latin America and the Caribbean, which estimates an expansion of 3.5% for this year.
Mining with low local integration
Collado clarified that mining is not as integrated into the national supply chain as other export sectors.
He explained that a local company with internal production chains that energizes other sectors through local purchases is not the same. He indicated that this dynamic in mining is limited.
He noted that 45% of exports in 2025 were represented by cocoa and gold, and that in January 67% of the total exported was determined by gold, driven mainly by high international prices of the metal.
He specified that the increase in the exported value does not respond to a greater volume, but rather to the increase in international prices.
Request clarity on Foreign Direct Investment
The vice president of CREES asked the authorities to clearly explain what is being registered as Foreign Direct Investment.
He warned that projects developed by foreign investors with financing from local banks should not be counted as foreign direct investment, since only capital contributions that come from abroad are considered, whether fresh capital, acquisition of companies or purchase of shares.
He maintained that, although these financings are positive for the economy, they should not be classified as foreign direct investment. He also recalled that in some years up to 50% corresponds to reinvestment of profits, which is counted as new investment, although it does not imply the arrival of new investors.
