IMF describes as “positive” situation of the economy

The governor of the Central Bank, Héctor Valdez Albizu, received the mission of the International Monetary Fund (IMF), headed by Esteban Vesperoni, who for two weeks has carried out, in compliance with Article IV of the Agreement Establishing the Fund, an evaluation of the economy of the Dominican Republic, reviewing its current status through interaction with departments of the Central Bank, as well as with other public and private economic institutions in the country.

Vesperoni explained to the governor that the IMF’s assessment of the performance of the Dominican economy is positive, “demonstrating remarkable resilience, due in large part to the correct response that has been sequenced in monetary and fiscal policy in the country.”

He explained that the boost that monetary policy has given to the recovery of the economy, as well as the agility of the Government in offering aid to the most vulnerable sectors in times of weakness during the pandemic.

The IMF official stressed that “this year may present challenges due to a combination of elements such as the invasion of Ukraine, the pandemic that is once again gaining strength in relevant countries such as China, or the necessary normalization of monetary policy by the Federal Reserve (FED) of the United States, having been able to verify for our part that the Dominican Republic enters this period in a situation of strength”.

Vesperoni also found that the Dominican economy had a very important recovery in 2021 at the sector level, highlighting tourism for its importance and the constant growth in the number of tourists received.

Likewise, he stressed that “it is clear that the recovery of the Dominican economy in 2021 was not a statistical rebound, it was a real recovery of 5% in relation to the pre-pandemic, achieved in a climate of stability, in a period in which the external sector He has shown strength.” He also indicated that he was able to verify in his two weeks of meetings in the country that “the private sector understands and appreciates what has been achieved in terms of monetary policy.”

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Vesperoni pointed out that the most important challenge going forward is to face inflationary pressures, “there is no country in the world that is exempt from this, since we are talking about energy, food, production chains, transportation, among other challenges. of the global economy”. He highlighted as correct the decisions on the increases in the monetary policy rate by the Central Bank to keep the expectations of economic agents anchored on the evolution of this variable.

Regarding the perspectives, the head of the mission explained that “we see its economy converging to its potential level in a situation of a stable external sector and financial system.”

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Valdez Albizu highlighted that the economic reactivation process benefited from the extensive monetary stimulus program of approximately 5% of gross domestic product (GDP) implemented at the beginning of the Covid-19 crisis, as well as from the significant improvement in the health situation. In addition, he pointed to the rapid recovery of tourism. “During the first quarter of 2022, more than 1.7 million tourists have been received, which projects that this year about 7 million visitors will arrive.”

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