The President of the Republic, Luis Abinader, in his third Accountability, emphasized the achievements of his management in the national economy, highlighting the GDP growth of 4.9%, the good investment climate and the decrease in public debt from 61% in 2021 to 59.1% in 2022, 1.9%.
The president, when addressing the National Assembly, said that the Dominican Republic is among the countries with the highest global economic growth in 2022 and with one of the most dynamic economies in Latin America.
“The Dominican Republic, in the year 2022, has surpassed Ecuador in Gross Domestic Product, adjusted for purchasing power parity, becoming the seventh economy in Latin America,” said the president.
He highlighted that at the end of 2022, the consolidated debt with respect to the Gross Domestic Product was 59.1% and that when the government took office, in August 2020, this indicator was 61%. He explained that this reduction was achieved despite having faced the biggest external shock in history and the inflation caused by Russia’s invasion of Ukraine.
He said that, during 2022, the government had to face the expenses caused by Hurricane Fiona, of more than RD$16,000 million, which we faced with our own resources and without resorting to external financing.
Abinader pointed out that “this prudent and proactive management of the debt has been recognized by the International Monetary Fund, which in its latest report concludes that our country’s public debt is sustainable and that the policies that have been adopted are appropriate.”
International reserves
He added that they have closed 2022 with the highest level of international currency reserves in history with US$14,436 million and the national currency exhibited an appreciation of 2%, contrary to the depreciation observed in the currencies of most countries. The exchange rate is at 56 pesos per dollar compared to July 59, 2020.
Investments increase 27%
In addition, he indicated that the good climate of the Dominican economy has made new investments possible and that according to preliminary figures from the Central Bank, foreign direct investment increased more than 27% compared to the previous 2021, “reaching an unprecedented figure in the Dominican Republic of more than US$3,950 million, what he said shows the great confidence of foreign investors in the Dominican economy, even in an adverse international economic situation.
He stated that “the excellent macroeconomic figures confirm the correct path followed by this government, which also managed to reduce interest payments on the public debt of 2022 by RD$5,523 million, as a result of the appreciation of our currency and the liability management operation .
Collections grow 13.7%
Also at the economic level, the increase in State collection stood out, which at the end of 2022 reached 15.3% of GDP, exceeding by 13.7% what was collected in 2021, thanks to the evolution of economic activity, the fight against tax evasion and fraud and to the improvement of tax management.
He said that this increase has been dedicated to protecting the purchasing power of the working class and the most vulnerable households in the face of the inflationary situation that is plaguing the world economy.
For these purposes, more than RD$87,000 million were allocated to cushion the rise in mass consumption products, expand targeted social programs, and support the operations of the electricity sector and agricultural production.
low inflation
President Abinader pointed out that the family protection policy implemented by the Government has allowed the Dominican Republic to have one of the lowest inflation rates in Latin America, placing us below most of the countries in the region, including Colombia, Chile , Uruguay or Costa Rica, all of them with inflation above 8%.
He said that the government’s fiscal policy actions, combined with the “necessary and timely” restrictive monetary policy measures applied by the Central Bank, managed to reduce inflation, with a consequent decrease in economic growth that was reflected in the last quarter of last year. and will continue to be reflected in the first quarter of this 2023
