Dominican Republic reduces growth forecast for 2023 to 4.25%.
Written by worldOneFm on April 8, 2023
Santo Domingo, D.R. The gross domestic product (GDP) of the Dominican Republic will grow by 4.25% at the end of this year, that is, 0.25% less than estimated last November, the Ministry of Economy, Planning and Development informed this Friday.
In a press release, the ministry said that growth projections had been revised downwards for 2023 due to a less favorable international environment, given the tightening of financial conditions at the global level. However, it highlighted an expansion in real terms of the GDP of 4.25%.
An improvement in the performance of the Dominican economy is expected for next year, with a natural GDP expansion of 5.0 %.
The economic outlook “continues to be conditioned by the level of uncertainty that currently dominates global markets, as a result of the hardening of financial conditions and the economic slowdown of our main trading partners,” states the report Macroeconomic Outlook 2023-2027, according to a note from the Ministry of Economy.
According to the information, adopting a restrictive monetary policy, the subsidies granted by the Dominican Government to mitigate the increase in fuel prices, and the extension of the temporary suspension of the adjustments to the electricity tariff have contributed to the slowdown in inflation.
Inflation is expected to converge to the target range of 4% ± 1% during 2023, with an expected year-end price growth of 4.5% and an average of 5.5%.
The authorities also project an average exchange rate of 56.79 pesos per dollar, a reduction of 0.41 cents concerning last November’s forecast, and a depreciation rate of 3.0% concerning the 2022 average.
