GDP up 1.95% in 2004

The Central Bank of the Dominican Republic has released a report that says that the Gross Domestic Product (GDP) of the nation grew by 1.95% in 2004, well above most predictions at this time last year. Inflation for 2004 officially ended at 28.7%. These indicators exceed the goals set by the International Monetary Fund (IMF).

IMF technicians had set a goal of a ?1% negative growth rate in the GDP, but the latest figures show that the country recovered to nearly 3% over the prediction.

The Central Bank expects a growth rate of 2.5% for 2005. It also forecasts inflation for 2005 in the 12-15% range. Central Bank Governor Hector Valdez Albizu is confident the economic recovery will be sustained, and pointed to the decline in prices of many essential consumer items, as well as medicines.

Regarding the deficit that the Central Bank is facing, Valdez Albizu said that the sale of many of the assets as well as the new closed funds would provide funding for payments due on the certificates of deposit that are outstanding.