Central Bank governor Hector Valdez Albizu says he is optimistic the Dominican economy will grow by 3% as originally forecast. He disputed the opinion of economist Ernesto Selman who forecast a major economic slowdown and a growth of just 1.5% of GDP.
Valdez said that in the first half of the year, growth was 1.6%. But he said that the government is stepping up public spending on the construction of schools, rural roads, granting financing and resources to farming, in addition to RD$20 billion in reserve funds available for private loans at 9% are expanding money in circulation which is expected to stimulate growth. He explained that accumulated annual growth to July was 4%.
He confirmed that the extension of the government austerity plan is to ensure there is no wasteful use of government resources. “I believe that any rationalizing of spending is good for the economy,” he said. Valdez said that the Central Bank recently injected US$150 million into the exchange market and the rate has dropped by more than 60 points.
Valdez spoke when speaking at the opening of the III International Economic and Financial Writers Workshop at the Central Bank.
http://www.diariolibre.com/economia/2013/09/18/i402833_valdez-albizu-dice-economaa-crecia-primer-semestre.html