Unemployment, inflation and informality, three major challenges facing the Dominican economy
Santo Domingo, DR.
The recently appointed Minister of Economy, Planning, and Development, Pavel Isa Contreras, outlined the most important challenges facing the Dominican economy in broad strokes, pointing out the need to reduce the unemployment rate, increase formal employment, lower inflation, and reduce the poverty rate.
In giving a master conference on the economic perspectives of the Dominican Republic for the second semester of 2022 at the Chamber of Commerce and Production of La Vega, Isa Contreras exposed the bright spots of the post-pandemic economic recovery and the new challenges imposed by the crisis caused by the war between Russia and Ukraine.
He indicated that in the context of the post-pandemic recovery of productive activity, the country reached positive indicators both in economic growth and in the recovery of the economic sectors.
He highlighted the important role played by private investment in the recovery, indicating that ,the gross capital formation explained 61 % of the economic growth last year and practically more than 95 % was driven by private investment.
He highlighted that the investment ratio (gross capital formation/GDP) remained above 30 % throughout 2021 and that final consumption explains 38 % of real economic growth, which is half of the 2019-201 contribution.