The International Monetary Fund (IMF) projects that the Dominican economy will grow by 4.5% in 2014, up from 4% of GDP in 2013. The IMF mission visiting the DR last week has concluded that the economy had developed “better than expected” and welcomed the government’s commitment to macroeconomic stability.
The mission recommends broadening the tax base and lowering tax exemptions as well as continued expenditure restraint. The IMF mission statement, released yesterday, Monday 17 March, also calls for the development of a comprehensive electricity strategy that includes an automatic tariff adjustment mechanism. In the monetary aspect, it recommends increased exchange rate flexibility and monetary tightening to respond to market conditions and external pressures. In its conclusions, the mission advised against further borrowing by the public sector.
Dominican public debt increased 5% during the first year of the Medina administration, moving from 32.6% of GDP in 2012 to 38.5% in 2013. The government says that in 2012 the public debt was US$19.23 billion, and this increased to US$23.20 billion by year-end 2013, up US$3.96 billion. Of the total US$14.92 billion is foreign debt contracted with multilateral institutions, commercial banks and bonds. The internal debt is US$8.23 billion, including loans with commercial banks, bonds and the inter-governmental debt.
During the past five years (2009-2013) the public debt increased from US$13.25 billion to US$23.20 billion, and compared to GDP it grew from 28.4% to 38.5%. GDP increased from US$46.7 billion to US$60.2 billion.
www.imf.org/external/np/sec/pr/2014/pr14105.htm