The preliminary study from the Central Bank on the performance of the Dominican economy during the first half of 2007 reveals the existence of an important deficit in the balance of payments accounts. These are the accounts that track exports and imports as well as interests, dividends and remittances, among other things. According to an article by well known economist Gustavo Volmar in Diario Libre, the first half of each of the past four years has shown the following behavior: A surplus of US$804 million in 2004, a surplus of US$76 million in 2005, a surplus of US$11.9 million in 2006, and a deficit of US$802 million in 2007. Looking at the entire year shows 2004 with a surplus of US$1.04 billion; 2005 with a deficit of US$477 million and 2006 had a deficit of US$786 million. The report says that although these deficits have been covered by investments and loans from overseas, which have even allowed for an increase in hard currency reserves, the deficit’s increasing trend, combined with some aspects of the government’s economic policies and the stability of income, make it necessary to closely watch the behavior of the balance of payments. The report outlines aspects of economic policy, the government’s handicaps in the face of such a deficit and other issues such as foreign investments and foreign debts.
See http://www.bancentral.gov.do/publicaciones_economicas/…