Santo Domingo – The Ministry of Economy, Planning and Development reported that the Dominican economy will grow by 5.0%.
Said rate remains unchanged with respect to the projections in March 2022; due to the levels of uncertainty that are managed in international markets.
The information is contained in the Macroeconomic Framework 2022-2026 published by the Vice Ministry of Economic and Social Analysis.
In the 2022-2026 Macroeconomic Framework, it is argued that these perspectives are subject to the still high levels of uncertainty that are managed in the international market, for which the inter-institutional team reiterates its commitment to continue monitoring and analyzing the international environment and the potential effects on the domestic macroeconomic outlook. The document specifies that an expansion of 5.0% is expected by 2023, approaching the rate of potential growth.
It is pointed out that in the internal sphere, the condition of the Dominican Republic as a net importer of some articles produced abroad, positions it as a country potentially vulnerable to external shocks such as those currently occurring. In this context, average inflation is expected to stand at 9.0% (increase of 0.5 pp with respect to the March Macroeconomic Outlook) and year-end inflation at 8.5% (increase of 1.5 pp) in 2022, converging to the target range of 4% ± 1% during 2023.
He points out that in recent months, the conflict between Russia and Ukraine has contributed to exacerbating the behavior of the price of crude oil, which is quoted in international markets above US$110, and of some cereals such as wheat and corn, which are trading at historically high levels.
As a result of a greater flow of currency registered in the recent present, which has influenced, among other things, the appreciation trend of the exchange rate, it is expected that the average exchange rate will close at 56.6 pesos for each dollar, a reduction of RD$ 0.8 with respect to the forecast of March 2022 and an appreciation rate of 1.17% in relation to the average of 2021.