NewsWhore
05-30-2011, 03:30 PM
The Central Bank reports a marked slowdown in the economy during the first quarter of the year, as reported in Hoy. The pace of growth declined from 7.5 for the same quarter in 2010 to 4.3% this year. The deficit of the current account in the first quarter increased to US$853 million, US$452 million (112%) more than for the same period in 2010.
Economist Bernardo Fuentes says that this time around the capital and financial account of the balance of payments closed in red, with a negative balance of US$68 million in the first quarter of 2011. This has not occurred since the first quarter of 2004, during the worst days of the banking crisis.
Fuentes makes the point the balance of payments in the first quarter of the year closed with a negative balance of US$736 million, which caused a decline of international reserves of the Central Bank in order to prevent the depreciation of the Dominican peso.
Fuentes said the increase in the deficit could be attributed to the US$248 million in crease in the petrol bill, together with the increase in imports motivated in part by rising raw material prices.
Furthermore, the Fuentes report indicates that the slowdown in growth reflects the monetary and fiscal restrictions that the government has implemented to reduce pressures that could affect the currency exchange market and price levels.
The best performing sectors were farming, beverage industry, tobacco industry, commerce and telecommunications. Free zone industries also experienced a 10.3% growth rate, the first time since 2005. Mining is up 42.3%, since the resumption of operations by the Bonao ferronickel mine.
Diario Libre reports today that in the first quarter of 2011, the central government spent RD$79.46 billion, when its revenues were RD$63.27 billion, for a RD$16.18 billion deficit. Central government spending was up RD$6.08 billion, or about 8.3% for the first quarter. From January to March 2010, spending had been RD$73.37 billion.
More... (http://www.dr1.com/index.html#2)
Economist Bernardo Fuentes says that this time around the capital and financial account of the balance of payments closed in red, with a negative balance of US$68 million in the first quarter of 2011. This has not occurred since the first quarter of 2004, during the worst days of the banking crisis.
Fuentes makes the point the balance of payments in the first quarter of the year closed with a negative balance of US$736 million, which caused a decline of international reserves of the Central Bank in order to prevent the depreciation of the Dominican peso.
Fuentes said the increase in the deficit could be attributed to the US$248 million in crease in the petrol bill, together with the increase in imports motivated in part by rising raw material prices.
Furthermore, the Fuentes report indicates that the slowdown in growth reflects the monetary and fiscal restrictions that the government has implemented to reduce pressures that could affect the currency exchange market and price levels.
The best performing sectors were farming, beverage industry, tobacco industry, commerce and telecommunications. Free zone industries also experienced a 10.3% growth rate, the first time since 2005. Mining is up 42.3%, since the resumption of operations by the Bonao ferronickel mine.
Diario Libre reports today that in the first quarter of 2011, the central government spent RD$79.46 billion, when its revenues were RD$63.27 billion, for a RD$16.18 billion deficit. Central government spending was up RD$6.08 billion, or about 8.3% for the first quarter. From January to March 2010, spending had been RD$73.37 billion.
More... (http://www.dr1.com/index.html#2)