NewsWhore
09-29-2008, 02:20 PM
Despite the optimism reflected in recent statements by President Leonel Fernandez during his trip to the US, government figures show that the Dominican economy is already hurting from the impact of the US financial crisis. President Fernandez forecast that the worst of the US crisis was over, and said that remittances were on the rise, not in decline. Furthermore, Fernandez said that on the contrary, the country was benefiting from an unusual flow of US dollars as Dominicans abroad bring their savings back home, fleeing from possible difficulties in US banks.
But the current issue of Clave newspaper says that while there was a 6.58% increase in remittances from January-June 2008, there has since been a pronounced trend towards a decline, according to Freddy Ortiz of the local association of remittance companies.
The report by Edwin Ruiz also focuses on the growing trade deficit between the US and the DR, with the DR importing US$1.59 billion more than it exported from January to July 2008. In August alone, nevertheless, the deficit was US$266 million, the highest so far this year.
He warns that tourism will also suffer. As of July 2008, travel was up 5.21%, but this is below usual growth rates for the year. Ruiz points out that the crisis will have an impact on remittances, industrial free zone manufacturing contracts and tourism receipts.
He reports that during the first half of 2008, the balance of payments showed a negative balance of US$409 million. "If the US were to fall into recession, as analysts expect, then the Dominican balance of payments will deteriorate further," says the article. Business sectors are urging the government to reign in its spending.
More... (http://www.dr1.com/index.html#8)
But the current issue of Clave newspaper says that while there was a 6.58% increase in remittances from January-June 2008, there has since been a pronounced trend towards a decline, according to Freddy Ortiz of the local association of remittance companies.
The report by Edwin Ruiz also focuses on the growing trade deficit between the US and the DR, with the DR importing US$1.59 billion more than it exported from January to July 2008. In August alone, nevertheless, the deficit was US$266 million, the highest so far this year.
He warns that tourism will also suffer. As of July 2008, travel was up 5.21%, but this is below usual growth rates for the year. Ruiz points out that the crisis will have an impact on remittances, industrial free zone manufacturing contracts and tourism receipts.
He reports that during the first half of 2008, the balance of payments showed a negative balance of US$409 million. "If the US were to fall into recession, as analysts expect, then the Dominican balance of payments will deteriorate further," says the article. Business sectors are urging the government to reign in its spending.
More... (http://www.dr1.com/index.html#8)