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Hurricane Fiona strongly impacts the eastern and northeastern provinces of the country
DOMINICAN REPUBLIC · In Brief · 20 Sep 2022

Hurricane Fiona made landfall in the Dominican Republic early Monday with winds of 150 kilometers per hour. It had a strong impact on east and northeast regions, mainly affecting the provinces of La Altagracia, El Seibo, Hato Mayor, Samaná, Duarte and María Trinidad Sánchez. So far there has been...

Inflation and economic growth slow as government negotiates 2022 budget amendment
DOMINICAN REPUBLIC · Report · 13 Sep 2022

Monthly inflation in August (0.21%) slowed sharply compared to average monthly inflation in January-July 2022 (0.76%). Economic activity growth also slowed in July (4.7% y/y). Even so, accumulated economic growth from January-July was 5.5%, compared to the same period in 2021. The Central Bank...

2022 Budget amendment Bill with higher deficit but no change in financing needs
DOMINICAN REPUBLIC · In Brief · 25 Aug 2022

The government delivered to the National Congress the Budget Amendment Bill for 2022, which increases the deficit to 3.6% of GDP, 0.6 pp higher than initially formulated. The novelty is that, thanks to the increase in tax revenues and savings in interest payments due to liability management opera...

Valdez Albizu ratified as Governor of the Central Bank
DOMINICAN REPUBLIC · In Brief · 12 Aug 2022

President Luis Abinader has ratified the current governor of the Central Bank, Hector Valdez Albizu, to remain in the position for the period 2022-2024. Valdez Albizu has held the position for 24 years (1994-2000 and 2004-2022). He has worked as Governor of the Central Bank in the administrations...

Avoiding economic crisis amid political litmus tests
DOMINICAN REPUBLIC · Report · 11 Aug 2022

Amid an increasingly restrictive monetary policy and increases in widespread subsidies, economic growth (5.6%) and inflation (9.5%) in H1 2022 maintained momentum compared to H1 2021. This was also true when compared with January-May 2022. Economic growth has been mainly associated with the stron...

The electricity rate frozen until further notice
DOMINICAN REPUBLIC · In Brief · 21 Jul 2022

According to the Electric Pact, a new quarterly adjustment of the electricity rate was required in July-September, which was issued on June 30 by the Superintendency of Electricity (SIE). However, this increase was rescinded by the SIE since two days ago the government asked the Economic and Soci...

Still growing, amid inflation-fighting and great uncertainty
DOMINICAN REPUBLIC · Report · 18 Jul 2022 · 1 response

The Dominican economy continues to grow, although at a slower monthly rate. In January-May 2022, the economy grew 5.6%, compared to the same period of 2021. But projections indicate that 2022 growth will end up at 5%, or possibly even less, at closer to 4.3%. For H2 2022, a significant growth slo...

A new increase in the monetary policy rate
DOMINICAN REPUBLIC · In Brief · 01 Jul 2022

Yesterday, the Central Bank decided an increase of 75 basic points in the monetary policy rate. The rate of the permanent facility for liquidity expansion (1-day Repos) increases from 7.00% to 7.75% per year and the interest-bearing deposit rate (Overnight) from 6.00% to 6.75% per year. This is t...

Inflation falls due to energy price freezes and tighter monetary policy
DOMINICAN REPUBLIC · Report · 14 Jun 2022

After a strong 1% rise in April, monthly inflation fell 0.5% in May, one of its lowest levels since September 2020. But there was no free lunch: the Dominican government has maintained its fuel subsidy plan during the first five months of 2022, thereby providing a subsidy of $318.4 million to mi...

​Increase of 100 basis points in the monetary policy rate
DOMINICAN REPUBLIC · In Brief · 01 Jun 2022

The Central Bank decided yesterday to increase the monetary policy rate from 5.5% to 6.5% per year. Since November 2021, the rate has increased 350 bp, as part of the Central Bank's policy decisions to counter rising inflation. The rate of the permanent facility for liquidity expansion (1-day Rep...

Vigorous recovery and resilience of Dominican economy despite challenges from global factors, according to IMF Mission
DOMINICAN REPUBLIC · In Brief · 17 May 2022

The IMF concluded the 2022 Article IV Consultation Mission and recognized that "the economy has shown a vigorous recovery after the pandemic, despite global factors that have generated challenges in terms of inflation." For the IMF, resilience and signs of policy sustainability are placing the Do...

Rallying, with inflation and police violence the main issues
DOMINICAN REPUBLIC · Report · 13 May 2022

Given the atmosphere of global uncertainty, everything would seem to indicate that the Dominican economy is managing to overcome the situation well, and without great difficulties, except for the problem of inflation. GDP grew 6.1% in Q1 2022, compared to the same period in 2021; exports of to...

Inflation and war drives economic growth outlook lower
DOMINICAN REPUBLIC · Report · 13 Apr 2022

Although the economy grew at a good pace in January and February, the persistence of inflation is worrying in a context of oil prices above $100 per barrel, and the uncertainty generated by the Russia-Ukraine war. Cumulative January-February GDP growth was 6% y/y, and inflation reached 8.98% in M...

Economic outlook grows complex, but is still manageable
DOMINICAN REPUBLIC · Report · 11 Mar 2022

The situation following Russia’s invasion of Ukraine complicates the 2022 economic outlook for the Dominican economy. The rise in oil and raw materials prices, plus the fall in the flow of tourists from both Russia and Ukraine, will make it more difficult to achieve inflation and fiscal deficit g...

​DR Government places foreign bonds and carries out liability management operation
DOMINICAN REPUBLIC · In Brief · 19 Feb 2022

The Ministry of Finance reported that sovereign bonds were placed in the international capital market for USD3.56 b. About USD2.3 b will finance the 2022 Public Budget, covering 63.6% of the total external financing to be contracted in accordance with Law 345-01. The remaining USD1.26 b are desti...