NewsWhore
09-16-2009, 05:40 PM
The DR's current budget deficit is not sustainable, according to Franco Uccelli, vice president of JP Morgan's Emerging Markets department. Uccelli expects the DR will end the year with a 3.5% deficit in its GDP, twice what the government had forecast. He spoke during a breakfast organized by the Spanish Chamber of Commerce.
Uccelli believes that to finance this deficit is unsustainable.
Uccelli said that considering possible projections by the World Bank, the DR's deficit in the non- financial public sector could finish at 4.7%.
The economist said that for the first time since 2004 the DR will finish the year with its deficit at more than 40% of its GDP. Ucelli says that the energy sector and fiscal issues are the nation's two biggest negative risk factors at the moment.
There is good news, according to Uccelli, who says the DR will finish the year with a 2% economic growth and could grow 4.5% in 2010.
Growth would be spurred by exports, remittances, tourism and investment, as the US economy recovers. The US is the DR's main trading partner. "The economy in the DR is very closely tied to the US," he says.
More... (http://www.dr1.com/index.html#3)
Uccelli believes that to finance this deficit is unsustainable.
Uccelli said that considering possible projections by the World Bank, the DR's deficit in the non- financial public sector could finish at 4.7%.
The economist said that for the first time since 2004 the DR will finish the year with its deficit at more than 40% of its GDP. Ucelli says that the energy sector and fiscal issues are the nation's two biggest negative risk factors at the moment.
There is good news, according to Uccelli, who says the DR will finish the year with a 2% economic growth and could grow 4.5% in 2010.
Growth would be spurred by exports, remittances, tourism and investment, as the US economy recovers. The US is the DR's main trading partner. "The economy in the DR is very closely tied to the US," he says.
More... (http://www.dr1.com/index.html#3)