EFE News Agency
The Dominican Republic has the potential to become an advanced economy in the next 40 years, according to specialists from the International Monetary Fund (IMF), the country's Ministry of Finance reported yesterday, Friday.
In an article, experts note that, “looking ahead, there are reasons to believe that the Dominican Republic can maintain its high growth. IMF staff estimate potential growth of 5 percent annually, similar to the average of the past 50 years.”.
According to the Dominican Ministry of Finance, the text recognizes that "the Dominican economy has been one of the most dynamic and resilient in the Americas over the past two decades and has experienced a remarkable recovery after the pandemic, supported by both the sound policies adopted by the authorities and positive side effects from the global economy.".
Also noteworthy is the country's remarkable and rapid progress in terms of income convergence, which implies a reduction in differences between the richest and poorest economies.
"The Dominican Republic has exhibited the highest average convergence speed or 'blue shift' in Latin America over the past 50 years," say the specialists, who explain that during that time this speed has increased from an average of 3 percentage points to almost 8 percentage points per decade.
The positive data is the result of several factors, including the implementation of sound policies, particularly by the Central Bank, improvements in the political framework, a more diversified export base, and the structural flexibility of the economy to changing global conditions.
The authors also refer to the reduction of poverty and inequality in the Caribbean country: progress "has impacted the average Dominican family, whose purchasing power has quadrupled in the last 50 years, allowing them to enjoy a better quality of life and greater economic opportunities.".
Following the last visit to the Dominican Republic by an IMF delegation last June to gather information and analyze the situation and economic policies with the authorities, the organization recommended focusing its short-term policies on maintaining macroeconomic and financial stability and advancing with structural reforms to promote "inclusive and resilient growth," according to a statement issued at the time.
The mission stated that the Dominican Republic's economic outlook is positive, although downside risks dominate in the short term.
