Minister of Economy, Planning and Development, Pavel Isa Contreras, confirmed that the Dominican Republic maintains its economic growth projection of 4.5% for the year 2023. In an interview on the Uno + Uno program, Isa Contreras highlighted that public investment is at a very high rate, with capital spending close to double what was seen in the first two months of last year.
Minister Isa Contreras also advanced that the Ministry of Economy will publish a new Macroeconomic Framework at the end of March, which will contain new macroeconomic projections, and which are unlikely to be far from 4.5%.
Isa Contreras explained that the construction sector is dragging down the growth rate due to the direct impact of the interest rate increase to contain inflation, a measure which has been correctly implemented by the monetary authorities to combat inflation.
However, the minister highlighted the measures taken by the Government to invigorate the construction sector, including the effort to maintain the growth rate of public works and the facility to liberalize resources from the legal reserve for low-cost housing.
Isa Contreras also highlighted the increase in minimum wages, which has increased the purchasing power and has allowed to contain inflation. Regarding the international bank failure, the minister pointed out that it does not have a direct effect on the country.
On the other hand, Isa Contreras spoke about the visit of the president of the World Bank, David Malpass, who visited the Dominican Republic to learn about the good experience of the country and to work on concrete issues such as the support of the World Bank to the energy and water sectors, as well as to the proposal of a new water law. The minister also highlighted the importance of the XXVIII Ibero-American Summit of Heads of State and Government being held in the country, where issues of environmental cooperation and digitality will be discussed.
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