The Dominican economy grew 12.3% in 2021 and inflation was 8.50%
SANTO DOMINGO - With 23.4%, the construction sector finished last year ranked second among those that registered the greatest growth in the January-December 2021 period, according to figures released yesterday by the Central Bank of the Dominican Republic.
The first sector that experienced the most significant increases in its real added value compared to 2020 was hotels, bars and restaurants (39.5%); manufacturing in free zones obtained (20.3%); transport and storage (12.9%); trade (12.9%); local manufacturing (10.6%); other service activities (6.4%); and energy and water (6.0%).
In a press release on the main economic results of the past year, the Central Bank reported that the country's economy grew by 12.3% in 2021, inflation stood at 8.50%, and Gross Domestic Product (GDP) is projected to grow between 5.5 and 6% this year.
Regarding the construction sector, it states that its performance at the close of 2021 was associated with the promotion of private investment for the development of important real estate projects of residential units, the expansion of installed tourist capacity, as well as the execution with public capital of initiatives for the reconstruction and maintenance of land communication routes and urban improvement.
The monetary authority highlighted, once again, the positive impact of the government's efforts to incentivize the growth of public investment in the last months of 2021, as well as to improve the collection of tax revenues to finance the execution of public spending on infrastructure, health and education, among others.
He pointed out the significant annualized increase of 33% in tax revenues at the close of December 2021, equivalent to more than RD$205.5 billion and some RD$88.5 billion
The Central Bank highlights that, when comparing the Dominican Republic's performance in 2021 with the latest GDP projections published by the International Monetary Fund for Latin America, this result places the country as the best performer in real terms compared to pre-pandemic levels.
“In this sense, GDP growth stood at 4.7% in 2021 compared to 2019, reflecting a real reactivation of the economy rather than a statistical rebound, contrary to the case of many Latin American economies, whose levels of economic activity will not exceed those existing prior to the pandemic ,” the institution highlighted.
Total employment (including formal and informal jobs) stood at 4.7 million people in October-December 2021, reaching a level statistically equal to that of the same quarter of 2019. This, according to the bank, allows us to affirm that employment levels have recovered to those prior to the start of the COVID-19 pandemic
In the fiscal sphere, he highlighted the acceleration of public investment, the increase in spending in the health and education sectors, as well as in social programs, with the aim of moderating the repercussions of the pandemic on jobs and family incomes.
“The process of consolidating public finances, with a considerable increase in revenue collection and a rationalization of public spending in 2021, allowed the fiscal accounts to reflect a primary surplus in that year, which contributes to the sustainability of public debt,” he said.
In 2021, tourism revenues reached US$5,680.6 million, representing a year-on-year increase of 112.5%, consistent with a faster-than-anticipated recovery, the Central Bank . "This performance reflects the success of the government's efforts to support the tourism sector and the COVID-19 vaccination campaign in the country," it noted.
Similarly, it was reported that remittances reached a record high of US$10,402.5 million in the January-December period, representing a year-on-year increase of 26.6%, explained by the continued improvement in economic conditions in the United States, the country of origin for 83.2% of these flows. Compared to remittances received during 2019, the growth is 46.8%.
Regarding total goods exports from January to December 2021, it was indicated that they showed a year-on-year growth of 21.3%, that is, an additional US$2,188.3 million compared to 2020, mainly explained by the increase in exports from free zones by 21.7%, where jewelry and related items, tobacco manufactures and textile garments showed the best performance.
