Economy heating up

[NewsWhore]

The Economy, Planning and Development (SEPD) Minister Temistocles Montas gave the first indication that the Dominican economy was heading towards an inflationary cycle when he told an audience of business and civic leaders that the "economy was overheating" due to the rapid growth experienced during the first quarter. Montas, speaking at the Hotel Gran Almirante in Santiago de los Caballeros, said that "there is a danger that if the pace of growth is maintained, the year could end with a deficit in the current accounts that could put economic stability in danger, and be mirrored by increasing inflation". The SEPD minister revealed for the first time that the IMF team that recently visited the country was also worried about this possibility. Montas was emphatic in stating that the government did not have a cash flow problem, but that the concern stems from "the overheating of the economy". The Santiago Development Association (APEDI) sponsored the minister's talk on the "Present and Future of the Dominican Economy". According to Montas, an increase in imports during the first quarter, far above what was expected, is what has caused the economic malaise.

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