IMF: DR economy "most dynamic in Latin America"

This Monday’s meeting of representatives of the central bank and the International Monetary Fund.

By
EFE
Date: 05/08/2023

Santo Domingo, May 8.- A mission of the International Monetary Fund (IMF) considered this Monday that the Dominican economy was the most “dynamic” and “resilient” in Latin America in the last two decades. policy, a strong financial system and solid macroeconomic fundamentals.

According to a statement released by the Central Bank of the Dominican Republic, after the meeting of the IMF representatives and the governor of the issuing institution, Hector Valdes Albizu, Head of the Monetary Fund Mission, Emilio Fernández-Corrugedo, the economy of the Dominican Republic continues to show a positive outlook, working proactively in regulating and supervising the financial system, and a good business environment. expresses.

He pointed out that despite the “very complex” international panorama affecting most economies, this is happening in the Dominican Republic, causing a slowdown in global economic activity.

For his part, Valdes Albizu explained to the IMF mission that the Caribbean country’s economy maintained good dynamism in 2022, growing by 4.9%, driven by the strength of domestic demand and foreign exchange-generating activities, especially tourism.

“Preliminary results for the first quarter of 2023 show that the monthly indicator of economic activity (IMAE) averaged 1.4% expansion year-on-year, consistent with variation of 0.4% in January, 1.8% in February and 2.1% in March.

In terms of tourism, Valdez Albizu, the activity with the largest contribution to the Gross Domestic Product (GDP) in 2022 is Hotels, Bars and Restaurants, with a year-on-year expansion of 24.0% in real admissions. Respect.

He pointed out that the prospects for the sector remain positive and therefore, “if this trend continues, it is estimated that 7.8 million foreign passengers will arrive by air by the end of 2023.”

He highlighted that inflation has eased to 5.15% last April from a peak of 9.64% in April 2022 and is expected to converge to the target range of 4% ± 1% this May.

During the meeting, foreign sector activity and foreign exchange-generating activities, mainly tourism, generated revenue of nearly $8.5 billion last year and a year-on-year growth of 10.5% in total exports. 9.1% in free zones.

In addition, remittances exceeded 9,800 million dollars and foreign direct investment exceeded 4,000 million dollars, which contributed to the Dominican Republic recording foreign exchange earnings of about 39,000 million dollars in 2022.