Archive News

The fuel-price roller coaster is on the way up once again as the Ministry of Industry and Commerce announced price increases of as much as RD$4.40 per gallon. Premium gasoline goes up RD$4.00 to RD$149.90, regular goes to RD$139.90, a RD$4.40 increase. Diesel fuel went up to RD$119.40 for regular and RD$124.40 for premium, RD$2.70 increases for each. Even LPG was increased by RD$0.43 a gallon, now selling for RD$67.29.
According to the ministry, international prices experienced significant increases over the last week, pushed by better than expected economic news and a weaker dollar. Lower than expected unemployment numbers in the United States, an increase in raw material costs and Alcoa's return to positive earnings all helped to push shares and the prices of oil and derivatives. Alcoa reported surprising earnings on Wednesday and retailers reported sales increases for September, giving rise to improved expectations for recovery.

12 October 2009 - DR1 Daily News

The National Business Council (CONEP) says it will support the forthcoming IMF Stand-by Arrangement with the government on the grounds that the agreement would stabilize macro-economic elements by reactivating the economy. According to El Caribe, the main group representing the business sector in the Dominican Republic warns against further increases in the foreign debt or any new taxes, saying that current tax levels are sufficient to affect investments. CONEP sees the IMF agreement as a positive step in the face of the global economic crisis, whose main effects have been "the decrease in hard currency income at the same time as a decrease in the price of oil".
The document emphasizes the need for measures to provide more jobs and pour more resources into investment projects while preserving the DR's productive infrastructure. They said that "while the monetary authorities have been adopting measures to loosen the instruments of monetary policy, with the signing of the agreement with the IMF, greater resources will move quickly towards the productive sectors and in this way it is expected that there will be much greater economic activity." They reiterated their position that the investments should be in the framework of a program that prioritizes social spending, while taking into account the considerable levels of foreign debt and the effects on the nation's GDP.

12 October 2009 - DR1 Daily News

The DR and Chile have agreed to strengthen bi-lateral relations and will form a Feasibility Group aimed at developing economic and commercial opportunities between the two countries. The decision was made during a meeting that took place on 5 October and 6 October at the Foreign Relations Ministry. The meeting included discussions on cultural, political and cooperation opportunities.

08 October 2009 - DR1 Daily News

The Young Entrepreneurs Association (ANJE), the Association of Santiago Industrialists (ACIS) and the Dominican Business Federation (FDC), have all thrown their support behind the Dominican government's imminent Stand-by Arrangement with the International Monetary Fund (IMF). However, ACIS president Luis Nunez says the agreement will only work if there are no more taxes and the funds are well spent. He added that the agreement could lead to an economic recovery, but this would depend on the policies implemented by the government. FDC president Ivan Garcia says that the funds the DR will get will strengthen the reserves in the Dominican Central Bank and could help control inflation. Ricardo Bonetti of ANJE says that a tax increase should not be part of the agreement. Although the business sector is supporting the agreement, some have expressed concern that the agreement does not give details on how to spend the money or how to invest it.

08 October 2009 - DR1 Daily News

The DR has signed a letter of intent that will pave the way for the signing of a new Stand-by Arrangement with the International Monetary Fund (IMF) and will guarantee the DR access to an additional US$900 million in funds, this year alone. The agreement, which is the first for a Caribbean nation in more than two years, could include up to US$1.7 billion in funds for the DR during the 28 months of the agreement. The agreement was announced at the Annual Meeting of the Boards of Governors of the International Monetary Fund (IMF) and the World Bank Group being held in Turkey. As part of this new agreement with the IMF, the DR has agreed to reduce its budgetary deficit of 0.8% of the GDP to zero in 2010. The agreement calls for a 2% budget surplus by 2012. The agreement also requires reforms to the DR's crumbling electricity sector and a more efficient tax system. Yesterday, IMF Managing Director Dominique Strauss-Kahn congratulated Dominican authorities for the strength of the policies and reforms included within the agreement, "which demonstrates the commitment to strengthen the DR institutionally and economically." The Letter of Intent will now be sent to the Executive Director of the IMF for final approval. Although there have been calls from some quarters in the DR for the stability an IMF agreement would provide, there is also concern that a new "fiscal reform", Dominican political code for a tax increase, would come on the heels of this new agreement. Minister of Hacienda Vicente Bengoa, Governor of the Central Bank Hector Valdez Albizu and Economy, Development and Planning Minister Temistocles Montas were all attending the meeting in Istanbul when they signed the Letter of Intent.
See: www.imf.org/external/np/sec/pr/2009/pr09357.htm

07 October 2009 - DR1 Daily News

The United Arab Emirates and Dominican governments have just closed a deal that paves the way for immediate construction of a US$800 million electricity generation plant in the north western port of Manzanillo, in Monte Cristi province. Rumors that the UAE would build the plant have been circulating for close to a year, but this is the first concrete information on the subject. Listin Diario reports that the plant will run on natural gas, generating 600 MW of electricity. The final details of the contract were worked out yesterday between President Leonel Fernandez and UAE Foreign Relations Minister Sheikh Abdullah Bin Zayid Al Nahyan. The meeting took place at the Presidential Palace and construction is due to begin as soon as next week.

06 October 2009 - DR1 Daily News

Hoy reports that the DR was admitted to the Development Center of the Organization for Economic Co-Operation and Development (OECD) yesterday. The country's admission into the Development Center was announced by Minister of Economy, Planning and Development Temistocles Montas. The DR is now the 7th regional member of the Center, which has a total of 39 members from the OECD nations. The basic objective of the Development Center is to serve as a link between the world's most developed countries and countries with emerging economies.
Hoy reports that the process of becoming a member of the OECD Development Center began in 2004. It included an overhaul of the DR's planning and administrative financing system.
For more information, see: www.oecd.org/department/0,3355,en_2649_33731_1_1_1_1_1,00.html

06 October 2009 - DR1 Daily News

The cost of fuel has gone down by between RD$5.20 and RD$1.15 according to the latest price bulletin from the Ministry of Industry and Commerce. Both types of gasoline and diesel fuel went down in price as well as LPG for household and vehicular use.
LPG went down by RD$1.15 and is now RD$66.86 a gallon. Premium gasoline will be RD$145.90 a gallon and regular will be RD$135.50. Diesel fuel will be RD$116.70 for the regular grade and RD$121.70 for premium diesel. Even Avtur, the aviation fuel, was down RD$2.12 a gallon to RD$90.25.
According to the ministry, the international publications dedicated to petroleum prices, Platts and Opis LPG, are reporting lower prices for gasoline, kerosene and fuel oil because "they were pressured by a substantial fall in prices due to a weak demand and the news of an increase in United States inventories." Last week oil prices fell by US$8.00 a barrel.

05 October 2009 - DR1 Daily News

During the January-August period, the DR saw 67,000 fewer tourists than the year before, a 2.2% decrease. The main reason for the low numbers was a 1.1% decline in visitors during August. Yet, despite these shortcomings, predictions six months ago were far worse. According to Diario Libre, tourist arrivals from the United States, Canada, Russia, Portugal and Argentina have increased: in fact there were 22,000 more tourists from Canada and the United States in August than the previous year.
Tourism from the United States has been up for the past four months and in August it grew by 14%, with nearly 900,000 visitors so far this year, a 1.58% increase over 2008. This is due, in part, to the fact that travel to Europe is expensive and the weak dollar makes European travel less attractive than a tropical paradise. The outbreak of the AH1N1 influenza in the Mexican resort of Cancun also sent tourists to the DR. Tourism from Canada is up this year with over 500,000 visitors. As a matter of fact, data for the past three years, 2006, 2007 and 2008, shows that 2009 has been slightly better than 2007 or 2006. Russian visitors are up15% and tourists from France, after 10 straight months of decline, went up slightly in August.

05 October 2009 - DR1 Daily News

The International Monetary Fund (IMF) calculates that the Dominican Republic will see growth of 0.5% this year and 2% in 2010, the same numbers that it predicted for the country last April, according to its latest "World Economic Outlook" report.
Last year the country's GDP grew by 5.3%, according to the report. The IMF did improve, nonetheless, the predictions for inflation, which they had originally calculated at 1.7% for 2009 and 5.8% for 2010. Finally, IMF specialists are expecting a 0.9% inflation rate for 2009 and 5.4% for 2010. Last year, the Consumer Price Index (CPI) for Dominicans grew by 10.6%, reminds the report. On the current balance of spending, they expect a deficit of 6.1% of the GDP in both 2009 and 2010.

02 October 2009 - DR1 Daily News