Representatives of the international bank highlighted the country's robust economic growth during the month of June
SANTO DOMINGO– The Dominican economy is establishing itself as one of the most resilient in the region, thanks to its strong macroeconomic fundamentals, JP Morgan executives emphasized. They expressed that, based on their proven experience and on-the-ground studies, they would like to expand their investments in the country.
During a visit to the Governor of the Central Bank of the Dominican Republic (BCRD), Héctor Valdez Albizu, led by Carlos Aspillaga, Executive Director of the Public Sector in Latin America, they highlighted that "the reliability shown by this data reaffirms our intention to expand business in the country.".
Representatives of the international bank highlighted the country's robust economic growth during the month of June, which registered a year-on-year expansion of 6.4%, accumulating 4.5% during the first six months of this year.
Their estimates
JP Morgan executives said their latest estimates place Dominican gross domestic product (GDP) growth at around 4.5% by 2026. Regarding domestic prices, after inflation closed at 5.5% in July, below analysts' expectations, they anticipate that inflation will continue to moderate to around 4.2% year-on-year.
About international markets
Additionally, the executives shared their views on international financial markets, highlighting the high uncertainty and volatility experienced as a result of the war between the United States and Iran. In that context, they pointed to the disconnect between the fixed-income and equity markets, noting the recent increase in the yield on 30-year US Treasury bonds, which reached its highest level since 2007, reflecting expectations of fiscal deterioration and persistent inflation.
Regarding the stock market, their technical team projects that the upward trend, driven by unprecedented capital investment in the artificial intelligence space and healthy growth in the productive sectors. They also noted that market participants share the expectation that the world's major central banks will raise interest rates in the short term to contain inflation. At the same time, they highlighted the trend of diversification into other currencies being implemented by various central banks and asset managers, as a result of the behavior of international financial markets, as part of their investment strategies.
A statement from the Dominican Central Bank underlines that JP Morgan executives highlighted the technical capabilities of the local body's team, noting that it is one of the best-trained technical teams in the Latin American region, and valued the strength of the institutional relationship built over the years.
A resilient economy
Valdez Albizu highlighted “the resilience shown by the Dominican economy in the turbulent international landscape, marked by episodes of high geopolitical and financial volatility. In this regard, he noted that, despite this challenging environment, the Dominican Republic has managed to maintain its pace of economic growth and preserve the stability and robustness of its main macroeconomic variables.”.
He thanked the representatives of JP Morgan “for their continued support and interest in further deepening the relationship with the country and the domestic financial market, reiterating the institution's willingness to continue strengthening technical and financial cooperation ties with its international counterparts.”.
Governor Valdez Albizu was accompanied by Vice Governor Clarissa de la Rocha de Torres; Manager Ervin Novas Bello; Deputy Manager of Monetary, Exchange and Financial Policies Joel Tejeda Comprés; Deputy Manager of Operations Liselotte Reyes Casado; Deputy Manager of National Accounts and Economic Statistics Ramón González; and Director of Treasury José G. Perdomo López.
The JP Morgan delegation was completed by Robert Cozzari, executive director of sales and marketing for Latin America; and Geraldo Guanaes, executive director of credit structuring and financial solutions.
Recommended readings:
