The International Monetary Fund (IMF) predicted today that the Dominican Republic will be the fastest-growing nation in Central America in 2025.
In its most recent report, the organization projected economic growth of 5.0% , the highest in Central America, followed by Nicaragua with 3.8% and Guatemala with 3.6%.
These figures reflect the full consolidation of the recovery of the Dominican economic apparatus, pre-pandemic, which according to the Central Bank corresponded to 5.1% in 2019.
The IMF explained that this progress is due to the correct application of monetary policies that have led to a successful decrease in inflation.
Good practices
As the study emphasizes, one of the factors that has fostered the positive economic climate is the implementation of monetary policies, including the reduction of the interest rate that the Central Bank of the Dominican Republic has been applying.
The latest reduction was 25 basis points, bringing it to 6.50% annually.
In its report, the Central Bank said that the economic recovery is due to the performance of activities such as construction (4.4%) and manufacturing in free zones (6.5%), export revenues of US$6,404.1 million from January to September of this year, and the take-off of the tourism sector, one of the sectors with the greatest boost, after the pandemic.
Recommendations
Although it highlights the improvement in the region's economic systems, the entity recommends a series of measures to promote long-term growth and maintenance of Gross Domestic Product (GDP) , including:
“Improving governance, by strengthening the rule of law, improving government effectiveness and fighting crime, is a priority that encompasses all areas of growth.”.
It also suggests “promoting competition and fostering foreign trade, and expanding public investment and making it more effective,” among other suggestions.
What ECLAC says
The executive secretary of the Economic Commission for Latin America and the Caribbean (ECLAC), José Manuel Salazar-Xirinachs, stated that the Dominican Republic is a successful country, registering one of the highest rates of economic growth in the region.
The senior executive of ECLAC, in answering questions for Listín Diario , highlighted the programs being implemented in the Dominican Republic, including the Single System of Beneficiaries (Siuben), and Supérate, the latter with a high coverage of 56% of the population where it is applied.
“At ECLAC, we view the expansion of the social protection system in the Dominican Republic in recent years as very positive. Regarding pensions, we highlight solidarity pensions; due to the decline in contributory pensions, we see significant room for growth and progress in non-contributory pensions,” he explained.
Sources: Hoy and Listín Diario.
