Dominican Republic would be the sixth largest economy in Latin America

The governor of the Central Bank of the Dominican Republic (BCRD), Héctor Valdez Albizu, revealed yesterday that “the nominal product would be at US$109,045.4 million in 2022 and would continue to grow until exceeding RD$120 billion in 2024, which would place the Dominican Republic, as stated by the IMF, as the seventh largest economy in Latin America.

Speaking at the XV International Congress of Finance and Auditing (CIFA), he said that this level of output, together with a modern and efficient liability management strategy by the Ministry of Finance aimed at reducing debt service and improving its sustainability, has contributed to the consolidated public sector debt falling from 69.1% of GDP in 2020 to 62.6% of GDP in 2021, projecting a level below 59.0% of GDP by the close of this year.

Nominal output expresses the monetary value of a country’s production of final demand goods and services.

The governor said that “despite the complex and uncertain environment that we have had to live in recent years, the Dominican economy maintains solid fundamentals and, on other occasions, will emerge stronger. I am confident that its dynamism will continue, generating more and better jobs for Dominicans, encouraging consumption and creating new investment opportunities.”

At the conference, he explained how the Dominican Republic designed and executed an effective strategy to face the international crisis on the health and economic front. In the second part of his speech, he pointed out the main aspects of the Dominican economic recovery and its prospects.

He highlighted that the inter-annual inflation was lower in May and June than in April. This behavior is expected to continue for the rest of the year so that inflation would converge to the Central Bank’s target range of 4.0 % ± 1.0 % during 2023.

On the other hand, according to the forecasting system that contains the different projection models of the BCRD and multilateral organizations, such as the IMF and the World Bank, the Dominican economy would grow by 5.0%, an expansion rate close to potential both in 2022 and 2023.

Valdez Albizu explained that the Dominican economy has kept growing.