Dominican Rep: in spite of announcements, public spending remains sluggish

DOMINICAN REPUBLIC - In Brief 13 Jun 2013 by Pavel Isa

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.

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