US in recession

[NewsWhore]

While economists have known this for months, the US is now officially in economic recession, which is sending waves around the globe. Coupled with tumbling gas prices and limited spending by large and small banks, observers can only estimate the damage to the US and satellite economies like the DR over the coming months. Asian markets have also plummeted in recent days and although stocks showed some life at closing last week, they took another dive at closing yesterday. The US is the DR's largest trading partner and a recession in the US invariably spells trouble for the Dominican economy. Although some Dominican politicians and economists have said the DR is well prepared to handle the pressures of an international market and financial crisis, others have expressed concerns that the DR is in fact unprepared and has not instituted the proper mechanisms that could soften the blows of this crisis. According to economist Guillermo Caram and social expert Olaya Dotel, the 2009 national budget is an example of how the government has failed to focus on the possible difficulties of 2009. The experts say that once again the budget is more geared at building public works instead of investing in social programs. The budget has been set at RD$329 billion. According to Caram the new budget is an exercise in internal and external accumulation of debt. Caram added that in a tough fiscal year the government must be more even-handed with its policies and its emission of non-organic money.

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