NewsWhore
02-16-2011, 02:50 PM
The International Monetary Fund (IMF) mission that visited February 1-14 to conduct discussions under the fifth review of the Stand-By Arrangement with the Dominican Republic has issued a statement saying that the program "continues to yield positive results." The statement calls for the government to increase taxation revenues and reduce electricity sector subsidies.
The mission, headed by Alejandro Santos, was in the DR to review progress on the US$1.7 billion in financial support over a 28-month period that began in November 2009.
The mission met with Vice President Rafael Alburquerque and senior government officials in the economic and social sectors. A Letter of Intent (LOI) is pending for the policies for the rest of 2011.
In the statement, the IMF states:
"The authorities' program continues to yield positive results. Real gross domestic product (GDP) is estimated to have grown by 7.8% in 2010, while headline inflation ended the year at 6.2%, within the Central Bank's target range of 6-7%. Core inflation (which excludes food and fuels) reached 4.2% (year-on-year) in 2010, somewhat below the average of the last 5 years.
"The current account balance for 2010 is estimated to have posted a deficit of 8.5% of GDP driven mainly by higher imports, and financed by foreign direct investment and public borrowing. For 2011 the economy is expected to expand at a rate of between 5.5 and 6%, in line with trend output growth, while inflation is expected to decline to between 5 and 6% by the end of the year.
"Discussions advanced on policies to meet the targets of the program for 2011. The program envisions a fiscal adjustment of about 1% of GDP to be achieved through additional revenue measures and a reduction in the subsidy to the electricity sector. The Central Bank reaffirmed its commitment to achieve the inflation target of 5-6 percent using its policy instruments. While there is agreement on the main macroeconomic objectives of the program, there are remaining issues that require further consultation and discussion. It was agreed to continue discussions in Washington in the following weeks."
More... (http://www.dr1.com/index.html#2)
The mission, headed by Alejandro Santos, was in the DR to review progress on the US$1.7 billion in financial support over a 28-month period that began in November 2009.
The mission met with Vice President Rafael Alburquerque and senior government officials in the economic and social sectors. A Letter of Intent (LOI) is pending for the policies for the rest of 2011.
In the statement, the IMF states:
"The authorities' program continues to yield positive results. Real gross domestic product (GDP) is estimated to have grown by 7.8% in 2010, while headline inflation ended the year at 6.2%, within the Central Bank's target range of 6-7%. Core inflation (which excludes food and fuels) reached 4.2% (year-on-year) in 2010, somewhat below the average of the last 5 years.
"The current account balance for 2010 is estimated to have posted a deficit of 8.5% of GDP driven mainly by higher imports, and financed by foreign direct investment and public borrowing. For 2011 the economy is expected to expand at a rate of between 5.5 and 6%, in line with trend output growth, while inflation is expected to decline to between 5 and 6% by the end of the year.
"Discussions advanced on policies to meet the targets of the program for 2011. The program envisions a fiscal adjustment of about 1% of GDP to be achieved through additional revenue measures and a reduction in the subsidy to the electricity sector. The Central Bank reaffirmed its commitment to achieve the inflation target of 5-6 percent using its policy instruments. While there is agreement on the main macroeconomic objectives of the program, there are remaining issues that require further consultation and discussion. It was agreed to continue discussions in Washington in the following weeks."
More... (http://www.dr1.com/index.html#2)