Dominican Rep: in spite of announcements, public spending remains sluggish
New figures on public spending for April show
that in spite of the announcements made by the government that it will
accelerate spending in public infrastructure, during that month, total spending
remained as sluggish as during the first quarter. Most likely, that meant a month of slow growth,
and an extension of stagnation. It is noteworthy that for the period
January-April, payment of interests on domestic and foreign debt was higher
than spending on public investment. However, we expect acceleration in public
spending in May and June, and a recovery of employment and sales figures.
Also, in May inflation rate measured by the CPI
was negative (-0.18%). That was the second month in a row with negative
inflation. That means that there is
still plenty of space for expansionary policies.