The Dominican economy could grow 5.5% during the year 2021, according to the forecasts of the World Bank, which understands that in 2022 and 2023 it will be 4.8%.
In the world economic outlook, the international institution explains that with respect to the Caribbean, a 4.7% expansion in growth is expected, although the outlook for most of the economies that depend on tourism have been revised downward since January given that the recovery in this sector is still slow.
The World Bank indicated in its economic outlook for Latin America and the Caribbean that the growth of the regional gross domestic product (GDP) is expected to be 5.2% in 2021, assuming that there is a moderate advance in the distribution of vaccines in most of the countries, less restrictions on circulation, positive secondary effects derived from advanced economies and an increase in the prices of basic products.
In addition, growth in the region is estimated to decline to 2.9% in 2022. The report indicates that much of the region will take a long time to fully recover and return to pre-pandemic production levels and, furthermore, predicts that in 2022 GDP per capita in the region will be 1.5% lower compared to its level in 2019.
Through the document, he specified that the risks in relation to the outlook are mainly downward, which includes a slower than expected rate of vaccination against COVID-19, the emergence of new cases, adverse market reactions to difficult financial conditions. and alterations related to social unrest and natural disasters.
The World Bank explained that the recovery will last depending, to a large extent, on whether the pandemic is contained.
He noted that concerns about fiscal sustainability have increased because gross public debt in the average economy climbed to 64% last year, and external debt also increased.
Furthermore, disturbances associated with natural disasters are a persistent risk for the region. In the longer term, failing to adopt policies to remedy the damage caused by the pandemic, such as investing in new technology and infrastructure, would weaken prospects.
The World Bank indicates that expectations could be exceeded if there were, through commercial and trust channels, positive spillovers greater than anticipated due to the strong recovery in growth in the United States.
Growth in Central America is expected to reach 4.8% in 2021 with steady remittances and increases in commodity prices.
Source:
Diario Libre
