El Siglo newspaper interviewed several economists for wrap up statements on the present state of the economy upon the change of government. Most concur the situation is tough but that this is because of the increase in the cost of fuel purchases. Isidro Santana: "An aura of economic crisis has been created when the Dominican economy is not in crisis. Even though the economy is not as one would want it to be, the panorama of stability and growth continues. The only new, negative issue, is the problem caused by the high prices of petroleum and the need that can no longer be postponed for the government to take decisions regarding internal prices of fuel that may help re-establish fiscal equilibrium," he explained. Andres Dauhajre: "The elected party will find a difficult situation due to the loss of the resources that were provided by the money generated by the difference in consumer prices for fuel and the cost of imported fuel. The present government has come to an end with debts that have been accumulating, no longer being able to count on the income the fuel differential generated and the economy also now endures very high interest rates. Hugo Guiliani Cury: "The PRD government will find an economy in a difficult situation with the pressure of the fiscal deficit and the increase in the international cost of fuel. The first problem the government will have to confront is the energy problem, and then the fiscal imbalance." El Siglo reports that the fuel bill in 2000 will be US$1,200 million, 100% more than in 1999. The increase in the cost of fuel has wiped out the healthy differential the government used to pay the foreign debt; thus the government has been depleting its international reserves. Central Bank international reserves are down to US$300 million from US$547 million at the end of last year. The government is confronted by the challenge of a RD$2,500 million subsidy to propane gas, a RD$4,000 million deficit with RD$50,300 million income expected for this year. On the positive side, inflation is estimated to be 5.65% this year, down from last year. Economic growth is estimated to reach 8.4%, with the most dynamic sectors being tourism and the construction industry. Meanwhile, United Nations study shows that 26% of Dominicans live below the line of poverty.
