Global markets and Dominican economy update

The Delta variant continues to wreak major havoc on both financial markets and the global economy. Vaccines minimize but do not eliminate the harmful effects caused by the different strains of the coronavirus. Economic projections for the second half of this year are encouraging but could change depending on the pandemic.

Currently, both external and internal economic factors are positively impacting local business activity. As of August 2, 2021, the price of a troy ounce of gold is trending upward, while the price of a barrel of Texas intermediate crude oil has remained slightly above US$70.

Although outbreaks of the virus continue to have an impact in health and economic terms, as frankly the pandemic and the global economy have managed to coexist without major disruptions such as those we saw last year, or even in early 2021.

The Governor of the BCRD, Mr. Héctor Valdez Albizu, recently gave a press conference where he announced that the accumulated growth in the first semester of this year was 13.3%. Likewise, the domestic economy registered a considerable inter-annual expansion of 12.7% in the month of June.

The inter-annual expansion of June 2021 was compared to the pre-pandemic period of June 2019, reflecting a real increase of 4.7% in that month.

The Dominican Republic has received more than US$15 billion from FDI, exports, remittances and tourism, helping to sustain exchange rate stability.

The TPM was maintained at 3% for August 2021, which generates certainty for the different economic agents in terms of accommodative policies.

Advertisements

Leave a Reply

Your email address will not be published. Required fields are marked *

4 × two =