Former president of the National Council of Business, Celso Marranzini, says he is confident the Dominican Republic will overcome the present economic crisis in the short or medium range. He urged that the political parties put aside their internal differences and that there be more cohesion in Congress and the government to work for the common good. He criticized the 5% charge on exported goods and services, as was approved by the Senate and now awaits approval in the Chamber of Deputies. Marranzini’s statements are part of an interview in the Listin Diario’s economic section today.
Concurring with his commentary is Lisandro Macarrulla, president of the Dominican Republic’s Association of Industries. Macarrulla told the newspaper that what we have on our hands is first and foremost a confidence crisis. He understands that business associations may point to sectors that are enjoying relative dynamic growth, such as those related to exports, tourism services, and remittances, among others. Nevertheless, he says local industry is affected by a critical situation, given that demand has dropped sharply as a result of the economic measures implemented by the government. Macarrulla said that Dominican companies that have contracted loans in dollars are hurting because of devaluation, while simultaneously registering increases in their costs, particularly power service and imports.
Macarrulla also stressed that the country needs to resume the agreement with the International Monetary Fund, in conjunction with a fiscal reform, so as to eliminate the temporary “band-aid” solutions that have been required in the economy.
The Listin Diario also reports that the National Business Council wants Congress to ratify the fiscal reform now, and not wait until July 2004 as was proposed by the government. The reason for the later date would be to allow the May 2004 presidential elections to take place first, but business sectors say the economy cannot handle any more transitory measures in the interim. The business sector has also advocated that the government reduce its spending. The Mejia administration has not abandoned its practice of hiring new employees, despite the pressures on the economy.