Dominican economy’s 6.2% growth tops in Caribbean, LatAm
From Dominican Today
Santiago, Chile. – Dominican Republic’s 6.2%, GDP of 6.4% growth will lead in Latin America and the Caribbean economies this year and likely also 2017, the Economic Commission for Latin America and the Caribbean -ECLAC- said Thursday.
Dynamism in mining, construction, tourism and agriculture explain the figures, said the ECLAC in a Preliminary Balance 2016 report of the regional economy.
the report affirms that in the context of a fiscal consolidation program, the deficit of the Dominican central government is expected to be 2.3% of GDP at yearend 2016, implying a primary surplus of 0.6% of GDP.
It also notes that the decrease in the cos of fuel imports, due to low international oil prices, together with the dynamism of tourist flows and remittances, will compensate for a decrease in the exports of goods and will determine a reduction of the deficit from 1.9% of GDP in 2015 to 1.7% in 2016.
“The global balance of payments will close the year with a deficit of US$326 million resulting from a negative balance of US$760 million from the current account, offset in part by a surplus of US$435 million in the capital and financial account,” the entity said.
It said year-on-year inflation, which stood at 1.4% in September, will close with a rate below the lower limit of the target range of between 3% and 5% set by the Dominican Central Bank, while unemployment will close below 5.9% posted in 2015, due to expanded economic activity.
By 2017, ECLAC projects GDP growth of around 6.2% in the Dominican Republic boosted again by the dynamism of the construction, mining and tourism sectors, although an expected rebound of international oil prices could raise inflation over the target range of the Central Bank.
“As a result, the current account deficit will increase to 2% of GDP and the central government deficit is expected to remain around 2.3% of output,” EFE reports.
For more on this story go to: http://www.dominicantoday.com/dr/economy/2016/12/15/61713/Dominican-economys-62-growth-tops-in-Caribbean-LatAm
