Economy April 21, 2024 | 10:12 am

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Dominican Republic growth estimate rises

Washington, DC – The new estimate reveals that the economy has become more vigorous and forces the Central Bank to be cautious about touching interest rates.

In its most recent report, the International Monetary Fund (IMF) estimates that the Dominican Republic’s economy will grow 5.4% in 2024 (it had projected 5.2% in October 2023). That growth brings it down to 5.0 percent in both 2025 and 2029.

The new estimate is revealing that the Dominican economy has become more vigorous and forces the Central Bank to be cautious in touching interest rates, even more so if one takes into account the surprising growth of the U.S. economy and an upward movement of prices in the U.S. market.

Given the behavior of prices and GDP in the United States, some analysts have even raised the possibility that the Federal Reserve will raise interest rates, contrary to the desire to start the cycle with a decrease in the cost of money.

The estimated growth for the Dominican Republic is one of the highest among Latin American countries.

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Paul Tierney
April 21, 2024 10:33 am

Availability to access money at reasonable interest rates is necessary to sustain economic growth. However, the growth needs good balance. For instance, good to increase housing and expand into new types of commerce. Yet, infrastructures such as transportation and potable water need equal investment to keep pace with those growths.