Inspenet, May 9, 2023
The Dominican economy has been the most dynamic and resilient in the last two decades in Latin America, according to a mission from the International Monetary Fund (IMF). The IMF praised the good implementation of monetary policy, a robust financial system and solid macroeconomic fundamentals of the Caribbean country.
Despite a “very complex” international outlook, which has led to a slowdown in global economic activity, the Dominican Republic’s economy continues to show a positive outlook.
During the meeting between the IMF delegation and the governor of the Central Bank of the Dominican Republic, Héctor Valdez Albizu, the head of the IMF mission, Emilio Fernández-Corugedo, stressed that the Dominican economy is proactive in regulating and supervising the financial system, as well as a good business climate.
Valdez Albizu explained that the country’s economy grew by 4.9% in 2022, driven by the strength of domestic demand and foreign exchange-generating activities, especially tourism. In addition, he pointed out that the outlook for the tourism sector remains favorable, and an arrival of 7.8 million non-resident passengers by air is expected at the end of 2023.
Inflation in the country has also dropped significantly, from a peak of 9.64% in April 2022 to 5.15% last April. Convergence to the target range of 4% ± 1% is expected this May. In addition, they discussed the dynamism of the external sector and foreign exchange-generating activities, mainly tourism, which produced revenues of almost 8.5 billion dollars last year.
IMF highlights how foreign investment and remittances boost the economy of the Dominican Republic
Regarding exports, these had a growth of 10.5% year-on-year, influenced by an expansion of 9.1% in those from free zones. In addition, the flow of remittances exceeded 9,800 million dollars and direct foreign investment exceeded 4,000 million dollars, which contributed to the Dominican Republic registering foreign exchange earnings of around 39,000 million dollars in 2022.
The Dominican economy continues to demonstrate its strength despite international challenges and is one of the most dynamic and resilient economies in the region. The solid macroeconomic fundamentals, the robust financial system and the good implementation of the monetary policy are some of the factors that have allowed the country to maintain a constantly growing economy.
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