US woes reflected in the DR

[NewsWhore]

The worrisome developments in the US economy could translate to increased concerns for Dominican consumers. The sharp increase in international petroleum prices coupled with the devaluation of the US dollar could lead to higher prices on a variety of products imported into the DR. According to Ricardo Rosario, director general of the National Business Federation (FENACERD) and Julian Antonio Parra, vice president of the National Trade Provisions Council (CNCP), the devaluation of the dollar will have a negative impact on trade and on Dominican consumers and could also affect trade with Europe. Rosario added that importers will have the choice of purchasing products from the US or China since trade with those countries is dollar-based and could help reduce monetary losses, if only slightly. European markets would be affected by the dollar devaluation because consumers as importers would rather purchase from the US or China, due to costs. Dominican emigre remittances to the DR are also likely to be affected by the US economy. Freddy Ortiz, president of the Dominican Remittance Business Association (ADEREDI) said that remittances would grow by about 5% and not the projected 8% to 10%. Unofficial projections for 2007 remittances put the figure at about US$2.737 billion.

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