Economy September 9, 2023 | 12:54 pm

Buy car in DR

Ministry of Economy highlights positive outlook for the country’s economic dynamics

The Ministry of Economy, Planning and Development highlighted the positive outlook for the country’s economic dynamics and its reactivation in the second half of this year.

“In fact, already for the month of July, the growth of economic activity stood at 2.9% year-on-year,” specified the Vice Ministry of Economic and Social Analysis through the Macroeconomic Analysis Directorate in a technical note on the country’s and the region’s growth.

It points out that the expansion responds to the significant improvement in manufacturing activities.

It argues that this recent result reflects the effects of the liquidity provision facilities and the policy rate reductions, which are part of the stimulus package. The monetary policy implemented by the Central Bank and the continuity given by the Government to grant subsidies to certain items have also impacted the mitigation of the increases in the price level of the leading products of national consumption.

It also states that year-over-year inflation stood at 3.95% in July, the lowest inflation rate since June 2020 (2.90%).

“If we compare ourselves with the Central American region, we occupy the fourth place with the lowest year-on-year inflation. And if we compare with the year-end projections, which have been revised downward given the recent performance, we are among the first three economies with the lowest projected closing inflation with 4%”, the Ministry of Economy points out.

He argues that the effects of a more neutral monetary policy still have some way to go, which allows us to affirm a more accelerated reactivation for the rest of the year and a rebound in the economy.

The effects of a more neutral monetary policy still have some way to go, which allows us to affirm a more accelerated reactivation for the rest of the year and a rebound in the economy by the beginning of 2024.

“Although the Dominican Republic may maintain a vulnerable condition given its insularity and be affected not only by global economic dynamics – to a greater extent than other countries in the region – but also by adverse climatic effects, the strength of the country’s macroeconomic fundamentals is evident.

Then other countries in the region – but also by adverse climatic effects, the strength of the country’s macroeconomic fundamentals is evident,” he says.

He emphasizes that controlled inflation within the ranges established by the authorities, a stable exchange market, and a constantly growing external sector reflect the country’s continued good position in the region.

International outlook

The Ministry of Economy indicates that the international outlook continues to generate downward pressures on the growth prospects of the economies of the world and the region.

It notes that the slowdown in China’s economic activity, the persistence of inflationary pressures in the core component, the tightening of financial conditions

inflationary pressures in the underlying part, the tightening of financial constraints, the intensification of geopolitical

The intensification of geopolitical fragmentation and the still-uncertain outcome of the war between Russia and Ukraine are factors that have

Russia and Ukraine are factors that have maintained a downward bias in the economic outlook, given the levels of uncertainty given the levels of uncertainty they generate.

However, he points out that the most recent projections of international organizations such as ECLAC place the Dominican Republic as the third fastest growing country in Central America for 2023, with 3.7%, only surpassed by Panama and Costa Rica.

“This confirms the positive outlook for the country’s economic dynamics and its reactivation for the second half of the year,” he concludes.

 

0 0 votes
Article Rating
Subscribe
Notify of

0 Comments
Inline Feedbacks
View all comments