NewsWhore
11-23-2009, 04:10 PM
In an interview in Listin Diario, Alejandro Santos, chief of the International Monetary Fund (IMF) mission to the Dominican Republic, said that growth prospects for 2010 are good, with recovery expected in the second half of the year. He promised that the Stand-by Arrangement the government signed recently would not bring tax reform or new taxes. He told the newspaper that the Central Bank would continue to manage the exchange rate, to prevent sudden shocks. He said the projected level of reserves is consistent with limited interventions in the exchange market. He forecast "sustained yet gradual recovery."
"The program involves implementing anti-cyclical policies during the last quarter of 2009 and the first two quarters in 2010. These policies are designed to stimulate domestic demand by an expansive fiscal position and flexible monetary policy. We expect that these policies will result in a more robust economic growth for the second half of 2010."
He said the government expects to reduce the debt-GDP level in the medium term. The level of debt is estimated to reach 40% of GDP in 2011 to decline to 35% of GDP in 2014, and continue to drop in following years. "To achieve this goal the government goal is a primary surplus of 2% of GDP for the public consolidated sector in 2012 and thereafter," he explained. He forecast the economy would grow 0.5% to 1.5% for 2009, but 2-3% in 2010.
He acknowledges the DR has been affected by the international financial crisis. "Nevertheless, with a growth rate of 1.5% in the first half of the year, and negative inflation, the Dominican economy continues to be one of the best performing economies in Latin America," he said.
More... (http://www.dr1.com/index.html#2)
"The program involves implementing anti-cyclical policies during the last quarter of 2009 and the first two quarters in 2010. These policies are designed to stimulate domestic demand by an expansive fiscal position and flexible monetary policy. We expect that these policies will result in a more robust economic growth for the second half of 2010."
He said the government expects to reduce the debt-GDP level in the medium term. The level of debt is estimated to reach 40% of GDP in 2011 to decline to 35% of GDP in 2014, and continue to drop in following years. "To achieve this goal the government goal is a primary surplus of 2% of GDP for the public consolidated sector in 2012 and thereafter," he explained. He forecast the economy would grow 0.5% to 1.5% for 2009, but 2-3% in 2010.
He acknowledges the DR has been affected by the international financial crisis. "Nevertheless, with a growth rate of 1.5% in the first half of the year, and negative inflation, the Dominican economy continues to be one of the best performing economies in Latin America," he said.
More... (http://www.dr1.com/index.html#2)