DMK Abogados begins today the monthly publication of the Report on the Dominican Economy prepared by the prestigious economist and business consultant, Henri Hebrard, in his desire to serve truthful and valuable information to his clients, friends, and related parties.
DMK Abogados en route to its 30th anniversary … for a better Dominican Republic!
As you can see, while the debt of the Non-Financial Public Sector (NFPS) closes 02-2021 at US$47,193.9 million (60.4% of GDP), the Consolidated Public Debt (DPC) closes at US$57,963.5 million, which is equivalent to 74.2% of GDP.
Regarding the debt service of the NFPS for what goes from 2021 to February (US$886.9 million between payments of principal and interest), it is located at a too high level as a% of the revenues of the central government (40.2% as of February 2021 vs. 34.3% as of February 2020).
If this service of the NFPS debt is measured by the only part of the interest payment (as% of income), a very significant increase is also observed, going from 28.6% (2020) to 35.1% (2021 ).
Likewise, we take the opportunity to report that we have just reviewed the main indicators of our projection for the Dominican economy in 2021:
GDP growth 2021: we revised upwards our projection, now estimating a strong rebound of 6.5% (vs. + 6.2% in the revision of the previous month), which will compare with the drop of -6.7% registered in 2020;
GDP value in US $: we significantly revised our projection upwards, with a very strong rebound of 12.5%, going from US$78,829.0 million (12-2020) to US$ 88,676.2 million (12-2021); the product of the combined impact of real GDP growth (+ 6.5%), very weak devaluation (an average of just 2.0%) and higher inflation rates;
Finally, we understand that there will not be time to agree on the Social Pact, so it will be necessary for President Abinader to assume the leadership of the much-needed structural reform agenda so that the changes caused by these reforms can be integrated into the 2022 Budget.
Source:
