SANTIAGO –Raúl Ovalle, managing partner of the consulting firm Analytica, emphasized that the construction sector in the Cibao region represents 40% of the sector's GDP and stressed the need for effective coordination among key public and private sector stakeholders to mitigate the risks threatening the industry.
The impact of geopolitical tensions, domestic economic performance, and the main short- and medium-term environmental risks were among the topics addressed by economist Raúl Ovalle during the conference “Perspectives on the Dominican Economy: Global and Post-Electoral Challenges,” recently organized by the Cibao Association of Housing Developers and Builders (Aprocovici).
Ovalle, managing partner of Analytica, warned that the prospect of high international interest rates, increased freight costs, and potential volatility in hydrocarbon prices due to global conflicts are some of the main international challenges facing the construction sector.
Economist Raúl Ovalle. (External source).
However, he highlighted the positive effect of the robust U.S. labor market, whose remittances fuel demand for affordable housing in the region.
Domestically, Ovalle emphasized that the Cibao region, with a GDP of approximately $40 billion, surpasses the economy of El Salvador and contributes significantly to national value added. The construction sector in the Cibao is vital, representing 40% of sectoral GDP and experiencing loan growth of 120%, more than double the national average, in a context of low delinquency rates.
He also highlighted short- and medium-term risks such as instability in Haiti, natural disasters, and cyber threats, underscoring the need for effective coordination among key actors in the public and private sectors to mitigate potential impacts.
Tax Reform
Regarding the announced tax reform, he pointed out that within the framework of the recent Presidential Decree 337-24—which aims to double the size of the economy in the next decade—it will be fundamental in guaranteeing an improved, sufficient, and sustainable provision of public goods and services that raise the quality of life for Dominicans.
Ovalle also highlighted the importance of implementing strategic projects such as the Amber Highway, which promises to transform and increase the value of infrastructure and properties throughout the region, attracting more investment to the Cibao productive ecosystem.
Alejandro Fondeur Mera, president of Arpcovici, emphasized the relevance of these dialogues in informing and preparing its members to make informed strategic decisions.
