Economy July 9, 2020 | 10:26 am

A deepening fiscal precipice awaits incoming administration

National Palace. Photo M. Wesoly.

Santo Domingo.- President-elect Luis Abinader’s government will come to power with a complicated global economic scenario in the face of uncertainty about the true scope of the pandemic, but also with internal short-circuits, some caused by COVID-19 and others that were being dragged over time.

For this year, a fiscal deficit of 5.1% of the GDP is estimated, a percentage well above the level that was initially estimated.

The irruption of the new coronavirus has implied a worsening of the fiscal situation for the country.

The sharp drop in tax revenues, of 32.3% since the pandemic began, has caused the deepening of a fiscal precipice that at the beginning of the year was calculated at 2.1%.