Sectors with the highest growth are construction, free zones, mining, and local manufacturing
The Dominican economy grew 13.4% in the first five months of the year and they estimate that at the end of the year the total growth will be between 8 and 9%.
The governor of the Central Bank of the Dominican Republic (BCRD), Héctor Valdez Albizu, explained that this increase during January-May 2021 was driven by the construction sectors (54.0%), free zones (30.1%), mining (16.2%), local manufacturing (15.9%), transportation and storage (14.6%), commerce (10.1%), communications (3.5%), real estate and rental activities (2.1%), agriculture (1.6%), energy and water (1.4% ) and other service activities (1.3%).
The sectors that had negative growth were: hotels, bars, and restaurants (8%); teaching (5%); public administration (5%); financial services (1.2%), and health (1.1%).
Supports salary increase
The governor of the Central Bank stressed that the salary readjustment that is made must take into account the cost of the basic family basket, with the purpose that in July the National Salary Committee (CNS) is going to meet to discuss the salary issue. “I have always been totally identified with that wages have been a bit behind for a long time because adjustments are always made for inflation. But this is not a salary increase but a correction, ”he said.
Valdez Albizu indicated that these data are from the monthly indicator of economic activity (IMAE) and the month of May 2021 compared to 2020 had a growth of 21.2% and if the same month is compared with 2019 the increase is 4.7%.
He said that these figures reveal that the economy is reactivated and if this dynamism continues, according to the models and the forecasting system of the Central Bank, the expansion will be between 8.0% – 9.0%, conservatively, and with an upward bias.
He stated that the arrival of tourists to the country reached the figure of 390,948 visitors in May 2021, that is, a proportion of 74.1% with respect to the number of non-resident passengers received prior to the pandemic in the same month of 2019.
From January to May, remittances totaled US$4,393.2 million. In May they were US$933.8 million, with an increase of 46.2%.
While exports from free zones also continue with an important dynamism, increasing by 55.1% in said month, equivalent to an additional US$214.6 million compared to May 2020.
On the other hand, Foreign Direct Investment (FDI) had an accumulated from January to March of US$960.9 million. It is estimated that at the end of 2021 it will reach US$2,925.3 million, an amount that would cover twice the projected balance of the current account.
Regarding imports from January to May, their total increased by 80.0% (an additional US$878.9 million), while non-oil ones grew by 66.3% (an additional US$664 million), which is in line with the accelerated recovery of domestic demand.
In another order, the Governor highlighted that the monetary policy rate (MPR) is at its historical minimum of 3.00% and the liquidity provision program amounts to RD$215 billion (approximately 5% of GDP).
And to date RD$196,285.1 million have been channeled to companies and households, through about 90 thousand new loans, refinancing, and debt restructuring.
Source:
Hoy