EIU Newswire on the Dominican Republic, released on 2 December, says that the campaign for the May 2004 Presidential election will take place in a context of widespread social discontent and protest. EIU highlights that, “despite his growing unpopularity and fierce opposition from within his own party, Hipolito Mejia intends to run for re-election. The former President, Leonel Fernandez, of the opposition Partido de la Liberacion Dominicana (PLD), is the favorite to win the election, however. Regarding the economic outlook, EIU states that the government will struggle to meet its IMF fiscal targets. According to the report, tax collection is depressed and the government is reluctant to make cuts to public spending in the run-up to the election. EIU continues to hold faith that if the incoming government manages to restore confidence to the people, a recovery would be in the prospects for 2005. In the meantime, the business information arm of The Economist Group states that after a contraction of 3.4% in 2003, the economy is likely to experience negative growth again in 2004, as inflation erodes real purchasing power and high interest rates and flagging confidence result in curbed investment. Regarding the outlook for funding, the EIU states that if the government is unable to win the support of a forthcoming IMF mission, official disbursements will remain frozen, thereby increasing the risk for default in 2004. The IMF suspended its two-year, US$600-million standby agreement weeks after it was signed, following the government’s highly controversial decision to renationalize the two Union Fenosa electricity distributors without seeking the IMF’s prior authorization.