In his Argentarium column in Diario Libre, economic analyst Alejandro Fernandez comments that the three leading productive sectors of the Dominican economy n manufacturing, construction and agriculture n barely received RD$4.3 billion in financing in 2015.
He compares this to the consumer, motor vehicles and housing, and banking sectors that received 12 times more, or RD$50.9 billion. He says that according to Central Bank figures there was RD$2.9 billion less for farming and RD$7 billion in motor vehicle financing in the year, which was much more than the total for manufacturing of RD$6.7 billion.
The government itself, including the Central Bank, also benefited from loans and bond placements for RD$83.2 billion. “In other words, in 2015 the productive sector received barely 5% of what the Dominican government received,” he expressed with concern.
He observes that even construction, the most dynamic sector with an 18% growth in 2015, received only RD$394 million more in 2015 than in 2014. He said the dynamism of the construction sector could be attributed to the boom in central government construction projects.
Fernandez expresses concern that in the last months of 2015 there was a significant increase in bank credit to the public sector reaching RD$90 billion in loans, without mentioning investments in government bonds. He mentioned that official statistics show that there was an increase of 90% or RD$42.7 billion to the public sector, while private credit to households and companies barely increased 12.7% to RD$89.8 billion.
He observes that it is not bad to finance imports, housing and the government, but what is missing is a balance when national savings are applied to the unmet needs to make the real economy more productive, sustainable and competitive.
http://www.diariolibre.com/economia/argentarium/ahorrar-pero-para-financiar-que-EN2359633
