Economy October 25, 2023 - 2:00 pm

BCRD: “IMF shares optimism about the Dominican economy”

BCRD Governor Héctor Valdez Albizu, during his speech.

Santo Domingo.- It projects growth for the country of 3.0% in 2023 and 5.2% in 2024, while economic activity (IMAE) registered an inter-annual growth of 3.1% in September 2023.

The Central Bank of the Dominican Republic (BCRD) maintains a positive outlook for the Dominican economy, a view shared by the International Monetary Fund. This multilateral organization projects economic growth for the country of 3.0% in 2023 and 5.2% in 2024.

Meanwhile, the monthly economic activity indicator (IMAE) registered an inter-annual growth of 3.1% in September 2023, the highest rate this year.

This was emphasized by the governor of the BCRD, Héctor Valdez Albizu, during his speech at an event celebrating the seventy-sixth anniversary of that institution, in which he said that as long as the monetary policy continues to produce its effects and a complete dynamization of public investment is achieved, a good performance of the Dominican economy is expected, despite an unfavorable external environment.

Valdez Albizu explained that the increase of the actual gross domestic product (GDP) in the July-September quarter was 2.6%, for an accumulated January-September figure of 1.7%.

He indicated that according to the latest available data, the most significant contribution to economic growth in January-September came from hotels, bars, and restaurants, which grew 10.9 %, maintaining the great dynamism exhibited throughout the year.

He stressed that the BCRD’s measures, together with government subsidies to mitigate the rise in commodity prices, reduced inflation from 9.64% in April 2022 to 4.41% in September 2023.

He also specified that, with inflation under control, the monetary policy became more expansive through the reduction of its monetary policy rate (TPM) by 100 basis points, from 8.50 % in May 2023 to 7.50 % at present.

He also revealed the news that in October, the Monetary Board approved a new rapid liquidity facility for RD$40,000 million to be placed, this time in the construction, manufacturing, export, and agricultural sectors, of which, as of October 19, RD$13,735 million have been set.

He also informed that the Central Bank agreed to develop, together with the financial system, a project to promote women’s business initiatives and their relationship with economic issues, with emphasis on women’s leadership in productive activity.

Finally, he emphasized his firm optimism about the country’s economy for the future, based on the resilience of Dominicans and their extraordinary capacity to overcome critical moments and adapt to new realities.

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