The Centro de Investigación Económica de las Antillas (CENANTILLAS), a local think tank, foresees the DR will need to sign a stand by agreement with the International Monetary Fund in 2001. According to the organization, that operates under the umbrella of the Pontificia Universidad Católica Madre y Maestra, the economy will suffer a 20% deceleration in 2001, inflation will be double digit (13.5%) and the dollar will cost RD$17.75. He forecast fiscal and current account deficits. He forecast international reserves will maintain their declining trend. Pedro Silverio feels that signing with the IMF will be a more benign solution, than securing funds from other sources. The Central Bank governor, Frank Guerrero Prats yesterday said that international reserves are increasing, and that if petroleum prices stabilize at levels of US$28-US$25 the barrel, 2001 will be an excellent year for the economy. During the first half of 2000, the economy grew 10.5%. Central Bank authorities forecast the year will end with a 8.5% growth. For 2001 Cenantillas has forecast a 6.2% growth, as reported in El Caribe newspaper.
