The Central Bank has reported on a recent meeting with JP Morgan officials. Central Bank Governor Hector Valdez Albizu says the meeting was to review progress on strategic issues aimed at developing local financial markets and strengthening the tools available to the Central Bank to achieve its objectives in this direction. The international investment bank is interested in expanding its business in the Dominican Republic.
The Central Bank reports that JP Morgan sees the Dominican economy as having the best macroeconomic fundamentals in the region, making it more attractive to investors. The mission expressed interest in being part of innovative solutions and products to enhance the development of the Dominican Republic’s financial markets. JP Morgan expressed its intent to continue fostering the development of a successful long-term relationship with the country.
Central Bank Governor Valdez Albizu highlighted the macroeconomic stability prevailing in the country, the strength of its financial system, the exchange rate stability and the high levels of international reserves, the country’s judicial security and the climate of social peace.
Despite the external shocks, the Dominican economy has maintained a good performance by registering an average expansion of 5.6% in the monthly indicator of economic activity (IMAE) during January-May 2022. GDP is expected to grow around 5.0% by the end of 2022.
Valdez Albizu spoke about the favorable performance of the external sector. More than 3.5 million non-resident tourists have visited in the first semester, generating over US$4.12 billion in income. A record 7 million tourists are forecast for the year’s end.
Remittances are up to US$4.8 billion for the first half of the year and expected to close at around US$10 billion by year’s end.
Exports are up 14.9% from January to May 2022 – domestic exports 17.7% and free trade zone exports 12.7%.
By the end of the year, the current account deficit is projected to be between 3% and 3.5% of GDP, which would be comfortably financed by foreign direct investment, which is expected to reach US$3.5 billion this year.
This performance of foreign exchange generating activities, accompanied by an orderly foreign exchange market, has contributed to maintain the relative stability of the exchange rate, that has appreciated 5.0% in the first half of 2022. International reserves continue to strengthen, standing at over US$14.45 billion at the end of June, equivalent to 13.3% of gross domestic product (GDP) and approximately six months of imports.
The members of the JP Morgan delegation were Rob Cozzari, Geraldo Guanaes and Eugenio Alarcón.
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Central Bank
14 July 2022