The Ministry of Economy, Planning Y Developing reports that the 4.7 percent year-on-year growth registered in the Dominican economy during April of this year reflects “the resilience and capacity” of the country to face the unfavorable effects of the international environment on domestic aggregate demand.
In agreement with the Macroeconomic Situation Report, Situation Monitoring May 2022 This month saw the lowest monthly inflation since October 2021, which shows some moderation in the rate of price growth as a result of the measures taken by the Central Bank and the State to mitigate the impact of the pressures generated in the market. international.
The monthly document, prepared by the Directorate of Macroeconomic Analysis of the Vice Ministry of Economic and Social Analysis, indicates that general year-on-year inflation was 9.47 percent, 0.17 pp lower than the April record.
Explain what during May, it is observed that the groups with the highest incidence in the growth of prices were Food and non-alcoholic beverages (0.23 percent), Restaurants and hotels (0.07 percent), Miscellaneous goods and services (0.06 percent), living place (0.05 percent), Furniture and household items (0.03 percent) and Alcoholic beverages and tobacco (0.02 percent), jointly explaining 95 percent of the month’s general inflation.
It stands out that for the eleventh consecutive month, the national currency gains value against the dollar with a year-on-year decrease in the exchange rate of 3.0 percent in May, despite the rate of appreciation slowing down compared to last month.
It highlights that in April 2022, the arrival of passengers (foreigners and non-resident Dominicans) increased by 91.4 percent (+299 thousand) compared to those who entered the country during the same period in 2021.
The report establishes that the efforts to improve the quality and transparency of public spending continue to shape fiscal policy in 2022. It adds that the fiscal result stood at 0.04 percent of GDP in January-May, guided by the commitment of the Government to counteract the upward dynamics of international prices.
The publication maintains that the measures implemented by the Government have had as a priority to support the different productive sectors, to facilitate investment and the activity of households and companies, as well as to contribute to the developing social and environmental.
It details that during May 62 measures were taken in the sectors of water and sanitation, quality education, construction, youth, environment and climate change, transportation, food security, health, free zones, social policy, citizen security, housing, State, tourism, agriculture and farming, energy and mines, labor market, titling and international relations.
international context
The Macroeconomic Situation Report, Situation Monitoring May 2022 points out that for the fourth time this year, international organizations have adjusted their global growth projections downward to 3.2 percent in 2022 and 3.1 percent for 2023.
The document adds that the persistence of the geopolitical conflict continues to be considered in the balance of risks Russia-Ukraineinflationary pressures, China’s radical lockdown policy, and its implications for public policy.
