In the short term, policy priorities should seek to ensure the return of the inflation rate to the target range and maintain a downward trajectory in public debt while supporting the vulnerable population against the impact of global shocks.
The statement is in the conclusions of the International Monetary Fund (IMF) mission that visited the country for the Article IV 2022 Consultation, which reiterated that the DR economy continued to demonstrate remarkable resilience to global shocks, which was underpinned by appropriate policies including monetary policy support, and agile covid vaccination campaign and a reopening that allowed it to take full advantage of last year’s global economic recovery.
The mission of the international organization, headed by Esteban Vesperoni, understands that the pace of the monetary policy tightening cycle should depend on the evolution of domestic and external economic indicators to keep inflationary expectations anchored, safeguarding the well-earned credibility of the inflation targeting regime.
“The fiscal policy response to the impact of global shocks on inflation should continue to rely on temporary measures included in the budget while improving its targeting where feasible. Inclusive fiscal consolidation can ensure the declining trend of public debt.
Fipetur defines the DR as a world reference in tourism management in times of crisis.
He notes that a plan with well-sequenced reforms, some of which are already underway, should foster inclusive growth in the medium term.
He says there should be a strengthening of policy and regulatory frameworks, tax revenues, and reforms to support growth and progress in social areas.
Support
The mission supports reforms to the electricity sector, ensuring reliable electricity supply, reducing fiscal transfers to the industry, and improving the quality of public spending.
It also supports reforms to the policy framework that seek to promote more efficient public administration.
“The electricity sector has been a burden on public finances in the past and the Electricity Pact gives the authorities a mandate to improve governance in the electricity sector, create conditions that facilitate investment, and implement reforms to tariffs and the subsidy system, which have the potential to ensure the sustainability of the sector,” the mission said.