Montas sees a 3% growth in GDP

[NewsWhore]

Minister for Economy, Planning and Development Temistocles Montas says that the forecasts of a 6% increase in the GDP for this year have been downgraded to a 3% growth rate due to the impact of the global economic crisis. Montas said that he felt that the country and the whole region would have reduced access to foreign credits since the lending institutions have increased their interest rates and have fewer resources at their disposal. He pointed out the decision by China and oil-producing nations to deposit their money in countries that have generated the crisis would permit a demand for large amounts of resources and causing the country and the region greater indebtedness and problems with economic growth and balance of payments. According to the official there will be fewer subsidies for LPG and the electricity sector as part of the country's measures to tackle the crisis. These subsidies consume some US$2 billion with electricity using US$1.3 billion of this. Montas spoke during a conference sponsored by the Santo Domingo Archdiocese, called "The financial crisis and its impact on the Dominican Republic, an opportunity for solidarity." The head of the Customs Department, Miguel Cocco and Dominican Telecommunications Institute (INDOTEL) chief Jose Rafael Vargas also took part in the discussions.

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