Dominican Republic reduces growth forecast for 2023 to 4.25%

The gross domestic product (GDP) of the Dominican Republic will grow 4.25% at the end of this year, that is, 0.25% less than what was estimated last November, the Ministry of Economy, Planning and Development reported this Friday.

In a statement, the portfolio specified that growth projections have been revised downwards for 2023 due to a less favorable international environment due to the tightening of global financial conditions and highlighted an expansion in real terms of GDP of 4.25 %

An improvement in the behavior of the Dominican economy is expected for next year with an expansion of real GDP of 5.0%.

economic prospects "they continue to be conditioned by the level of uncertainty that currently dominates global markets, as a result of the tightening of financial conditions and the economic slowdown of our main trading partners”, specifies the Macroeconomic Panorama 2023-2027 report, according to the note from the Ministry of Economy.

According to the information, the adoption of a restrictive monetary policy, the subsidies granted by the Dominican Government to mitigate the increase in fuel prices and the extension of the temporary suspension of adjustments to the electricity rate.

Inflation is expected to converge to the target range of 4% ± 1% during 2023, with expected year-end price growth of 4.5% and an average of 5.5%.

Likewise, the authorities project an average exchange rate of 56.79 pesos for each dollar, a reduction of 0.41 cents with respect to the forecasts of last November, and a depreciation rate of 3.0% in relation to the average. of 2022.


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