Analyzing the economy in an interview in Hoy newspaper, Father Jose Luis Aleman, of the team of economic advisors of President Hipolito Mejia, said that the economy is starting to feel the effects of the deceleration of the US economy. He said this is evident in the slow down of contracts for work at the export free zones. Aleman, nevertheless, is optimistic that the Dominican economy will perform better than what most people perceive, as he believes that the negatives being felt now, such as increases in prices, are only temporary. Aleman told Hoy that the DR economy will find its due course this year, forecasting that by April all will note a substantial improvement that will change the pessimistic mood of people. He said that the fall of the peso versus the US dollar in the first part of the year, together with significant and generalized price increases strengthens the negative perceptions. "There has been an increase in prices, and there has not been an increase in salaries; if there is an increase in salaries, then one would suppose there will be greater unemployment. These are practically unavoidable things," said the well known economy professor. He said that he expects the government will soon have the necessary resources to start major projects that should reactivate the economy following the passing of the initial shock of the inflationist price adjustments in the first month of the year. "I believe the first months of the year are going to be a big hard. Now, as of March and April, things will get better," he said. He said that government efforts will result in an increase in farm production entering markets as of the start of spring. He favors that the Central Bank eliminate the exchange duty and allow the entrance of foreign banking to Dominican market. This he said would result in a lowering of interest rates, which he said is one of the most serious economic problems.
