Local March 31, 2014 | 8:25 am

Dominican Republic GDP growth “perverse,” industries warn

Santo Domingo.- The Herrera and Santo Domingo Province Industries Association (AEIH) on Sunday warned that the country’s "perverse" GDP growth, high inequality levels and a higher social immobility than all countries of the hemisphere, could become a time bomb.

AEIH president Víctor Castro’s warning comes in the wake of Central banker Héctor Valdez Albizu’s announcement last week that the economy grew 5% in the first quarter.

In a statement, Castro noted that while the official voices what appears to be good news, "19.3% of the population, especially the middle class, has been lowering their purchasing power in the last decade, compared with 1.5% in Latin America and the Caribbean."

"We’re building a social time bomb; inequality accompanies economic growth, middle class shrinks, real wage is in a tailspin, unemployment doesn’t yield and the market weakens. We need to stop and urgently rethink the model," the business leader warned.

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