Central Bank governor Hector Valdez Albizu revealed yesterday that the country’s GNP grew by 5.8% during the first six months of 2005, exceeding the expectations of the International Monetary Fund (IMF). This dynamic economic growth is being attributed to the private sector and is expressed in the 54% increase in imports of consumer goods, 34% of capital goods, and 15.3% of raw materials, stated Valdez Albizu. He explained that this growth is a response to business sector confidence in the official coordination of monetary and fiscal policies because the country is now on a path of recovery and stability. He projects that inflation will be no higher than 6% by the end of the year and reminded that the IMF had projected a consumer price index of between 11 and 13%, which it later reduced to 9%. Private consumption grew by 12.6% during the semester, and the sectors that experienced the greatest dynamism were agribusiness, tourism, telecommunications, finances, private property, industry and trade. Activities presenting negative growth during the semester were mining, electricity, water, and construction. He estimates that the exchange rate will close at RD$30 to US$1 or somewhat higher. Valdez Albizu was speaking at a press conference at the Central Bank.
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