NewsWhore
09-16-2011, 03:50 PM
An International Monetary Fund (IMF) mission in the DR for the 7th review of the 2009 Stand-by Arrangement (SBA) says that the Dominican economy is growing at a healthy rate of about 4%, and that overall macroeconomic conditions remain positive. Santos said that given the less than favorable external conditions, the growth projection has been reduced to 4-5% for 2011, down from 5-5?%.
Mission director Alejandro Santos acknowledged that inflation in the DR continues on the rise, mostly driven by higher commodity prices. Headline inflation reached 10% August (year to year), but it is expected to fall to 7-8% by the end of the year, and to 5-6 percent in 2012 as monetary conditions remain tight.
"Program performance remains broadly satisfactory, although two performance criteria for end-June 2011 were missed, the target for the current deficit of the electricity sector and the target for the consolidated fiscal deficit. Implementation of the structural reform agenda continues broadly on track, although there are delays in specific areas.
"The recent fiscal actions adopted in mid-2011, such as the tax measures, the tighter supplementary budget and the adjustment to electricity prices put the fiscal objectives for 2011 within reach, including the consolidated public sector deficit of 3 percent of GDP, although some further refinements in policies are needed."
The IMF mission met with Central Bank Governor Hector Valdez, Minister of Finance Daniel Toribio, Minister of Economy Temistocles Montas, Minister of Industry Manuel Garcia, vice-president of the Public Electricity Corporation Celso Marranzini, as well as senior government officials.
More... (http://www.dr1.com/index.html#1)
Mission director Alejandro Santos acknowledged that inflation in the DR continues on the rise, mostly driven by higher commodity prices. Headline inflation reached 10% August (year to year), but it is expected to fall to 7-8% by the end of the year, and to 5-6 percent in 2012 as monetary conditions remain tight.
"Program performance remains broadly satisfactory, although two performance criteria for end-June 2011 were missed, the target for the current deficit of the electricity sector and the target for the consolidated fiscal deficit. Implementation of the structural reform agenda continues broadly on track, although there are delays in specific areas.
"The recent fiscal actions adopted in mid-2011, such as the tax measures, the tighter supplementary budget and the adjustment to electricity prices put the fiscal objectives for 2011 within reach, including the consolidated public sector deficit of 3 percent of GDP, although some further refinements in policies are needed."
The IMF mission met with Central Bank Governor Hector Valdez, Minister of Finance Daniel Toribio, Minister of Economy Temistocles Montas, Minister of Industry Manuel Garcia, vice-president of the Public Electricity Corporation Celso Marranzini, as well as senior government officials.
More... (http://www.dr1.com/index.html#1)