Government revises upward its economic growth forecast to 10%

The Dominican economy will increase by at least 10% in real terms in 2021, the Ministry of Economy, Planning and Development estimated on Wednesday.

The forecast is 2.5 points higher than the predictions of two months ago and was published in the document “Panorama Macroeconómico 2021-2025”, which gathers the official short and medium term projections on the main macroeconomic variables for the current year.

A few months ago, a 7.5% increase in the Gross Domestic Product (GDP) was projected.

The Ministry of Economy looks very optimistic when it states that the current forecast is a “conservative” one, although it makes it clear that “the country must remain cautious in view of the risks associated with the covid-19 pandemic, which conditions the economic perspectives, not only at a local level, but also worldwide”.

This is a situation that could change the current projections at any time, no matter how accurate the estimates may seem.

The Macroeconomic Panorama states that at the national level, the Dominican economy has demonstrated its resilience and recovery capacity in the face of the occurrence of adverse phenomena, registering historical expansion rates during the first half of 2021.

“In relation to the pre-pandemic period, economic activity has grown by around 4% in the first half of the year, being among the first six countries in the Latin American and Caribbean region with high potential to recover the GDP existing in the pre-pandemic,” he said.

“The timely implementation of monetary and fiscal policies has been essential for the continuation of the recovery process,” he concluded.

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