The Dominican economy ended 2022 on a good note, after registering a growth of 4.9%, according to the latest report released by the Dominican Central Bank (BCDR) which highlights that growth forecasts were reached despite the challenging global situation.
The BCRD explains that the world economy was affected by the significant impact of two successive shocks during 2022, the first being the slowdown effects of the covid-19 pandemic and the second the Russian invasion of Ukraine.
“The results of the Dominican economy during the past year were reached despite the challenging global situation. To this effect, the global economy was affected by the significant impact of two successive shocks during 2022, the first being the slowdown effects of the COVID-19 pandemic and the second the Russian invasion of Ukraine. The aftermath of these events was mirrored in aggregate supply constraints and global inflationary pressures mainly due to disruptions in supply chains, high commodity prices in international markets, including oil, and rising container transportation costs. As a result, most countries adopted a tight monetary stance to control upward price pressures,” the BCRD explained in a press release.
The report stressed that the expansion of GDP in 2022 is a reflection of the strong macroeconomic fundamentals in the Dominican Republic, as well as its resilience to face external shocks. “This strength, together with the timely and prudent application of monetary and fiscal economic policy decisions, as demanded by events and circumstances, combined with the climate of social peace, transparency and legal security, have been decisive in maintaining economic stability and the flow of local and foreign investments in the country.”
The report also indicated that this can be seen in the positive assessment of the Dominican economy, both from international organizations and risk rating firms. A clear example of the good perception of the Dominican Republic in international markets is Standard & Poor’s decision to improve the country’s sovereign credit risk rating from ‘BB-‘ to ‘BB’.
It should be noted that prudent fiscal management with efficient debt management were important elements taken into account for the aforementioned improvement in the credit rating, in addition to the expectations of continuity of timely policies in the medium term, and the diversification of the Dominican productive apparatus.
Nominal GDP is forecast to increase by about US$18.476 billion to around US$114 billion, further improving the previously estimated debt-to-GDP ratio.
Likewise, this figure allows reaching a GDP per capita of approximately US $ 10,700 in 2022 higher than the US $ 8,971.9 seen in 2021, placing the country as the seventh economy in Latin America.
Source:
Hoy