Notwithstanding the rise in oil prices and restrictive monetary policy, economic activity in the DR grew 7.8% last year, reports the Central Bank. Thus the DR economy continues to be the fastest growing in the region. The Central Bank reports that year-end’s inflation was 9.02%, primarily due to the higher cost of fuel. According to the report, the economy was buoyed primarily by growth in Communications (15.7%), Tourism (15.7%), Mining (9.2%), Manufacturing (9%), Construction (5.2%), Farming (5%), Government (4.3%), Finances (3.2%), Housing (2.3%. The Dominican economy has sustained an impressive growth rate in the past five years, reporting since 1996 levels of more than 7.2% as the cover of the report highlights. Growth rates in the past have been 1996 (7.2%), 1997 (8.3%), 1998 (7.3%), 1999 (8%), and 2000 (7.8%). The Central Bank has forecast a 6.5% growth rate for 2001. This forecasted reduced growth rate, still the highest in Latin America, is attributed to the local interest rates, burden of new taxes, depleting international reserves due to the high cost of oil, and government expenditures, and to the effects of the slowdown in the US economy. The US is the DR’s main trading partner. For more on the report, see http://www.bancentral.gov.do/pubeco.html#anual
