He also reported that at the close of September 2022, the monthly indicator of economic activity (IMAE) registered a year-on-year variation of 4.8%, for an average growth of the real gross domestic product (GDP) of 5.4% in the first nine months, compared to the same period of the previous year.
SANTO DOMINGO.-The hotels, bars and restaurants sector has had the greatest impact on the performance of the Gross Domestic Product (GDP) in the first nine months of 2022, exhibiting 28.9% in terms of real added value, said today the governor of the Central Bank of the Dominican Republic (BCRD), Héctor Valdez Albizu.
He also reported that at the close of September 2022, the monthly indicator of economic activity (IMAE) registered a year-on-year variation of 4.8%, for an average growth of the real gross domestic product (GDP) of 5.4% in the first nine months compared to the same period of the previous year.
Valdez specified that with this behavior that the economy has been registering, an economic growth that will exceed 5%, thanks to the effort of each of the productive sectors of the country.
When referring to the best performing activities in January-September 2022, he cited hotels, bars and restaurants (28.9%), health (11.7%), other service activities (9.1%), public administration (7.8%), transport and storage (7.0%), trade (6.6%) and financial services (5.7%).
Regarding industries, activity in zones grew 6.6%, local manufacturing 4.3% and construction 2.2%; while agriculture grew 3.8% in January-September 2022, he indicated.
He indicated that inflation was 0.29% in September 2022, following 0.21% in August, variations that reflect a significant moderation compared to the previous 26 months in which monthly inflation averaged 0.78%.
The governor made his remarks while delivering a speech on the occasion of the institution's 75th anniversary, following a thanksgiving mass attended by BCRD collaborators, economists, and former governors of the institution.
The homily was delivered by Monsignor Cecilio Berzosa, who highlighted the harmony, behavior and welcome he received from the Central Bank authorities.
About GDP
The governor detailed a report on the sectoral behavior of GDP in January-September, in which he highlighted the remarkable impact of services as a whole, which constitute approximately 60% of the total economy and present an accumulated year-on-year variation of 7.2%, the governor indicated.
Labor market
Regarding the labor sector, he highlighted the resilience of the working class who, when unemployed due to force majeure, such as the COVID-19 pandemic, were able to migrate to other areas.
In that order, he reported that the main indicators of the labor market continue to show a recovery trajectory.
According to the preliminary results of the National Continuous Labor Force Survey, corresponding to the third quarter of 2022, the open unemployment rate, which includes the unemployed who are actively seeking work, has experienced a reduction of 3.2 percentage points.
This went from 8.0% recorded in January-March 2021 to 4.8% in July-September 2022.
He considered these to be important economic advances that contribute to the country's performance compared to other countries in the region that project indicators below those of the Dominican Republic.
Monetary policy rate
In his speech, the governor shared some thoughts on the conduct of monetary policy.
He stated that in response to rising global inflationary pressures, of magnitudes not seen in some advanced economies in the last 40 years, the Central Bank initiated a gradual process of monetary tightening at the end of 2021.
This is with the purpose of avoiding an overheating of the economy and a potential capital outflow, anticipating the increases in interest rates that would begin to occur later in 2022 in the largest economies.
In that regard, he pointed out that the Central Bank's Monetary Policy Rate has increased by 525 basis points, going from 3.0% in November 2021 to 8.25% at present.
Furthermore, the excess liquidity of the financial system has been reduced through open market operations and the gradual return of resources that had been granted during the pandemic.
