Entrepreneurs and economists gave the results of the macroeconomic policies that the monetary authorities have implemented, specifically, to reduce the levels of inflation that impacts the Dominican Republic and the path towards its economic recovery, in the face of the ravages of the covid crisis -19 and the war between Russia and Ukraine.
During the panel “Recovery, Inflation and public finances”, held at the Money 2022 Economic Forum, Pedro Brache, president of the National Council of Private Enterprise (Conep); Miguel Collado Di Franco, executive vice president of the Regional Center for Sustainable Economic Strategies (Crees); Jorge Subero, executive vice president of Cap Cana, and economist Haivanjoe Ng Cortiñas, analyzed the strategies implemented by the monetary authorities.
Inflation, which currently stands at 8.24% year-on-year, and economic recovery are two variables that have kept the main players in the local economy busy, in the process of establishing measures and strategies to guarantee resilience and growth.
The first, to contain its impact, has been at a “very high cost,” says Collado Di Franco, since the Government has had to borrow significantly to manage it.
They understand that inflation has its origin reason for
the monetary measures taken by the Central Bank (BC), that is, “to the expansion of monetary credits that were applied in 2020, so today, the panorama that persists is a contraction that is absorbing the income and salaries of the Dominicans,” Collado explained.
He added that the growth of that debt is worrying because the world is changing, as well as the interest rate measures applied by the large international banks, which translates into higher costs to finance and cover it.
However, the president of the National Council of Private Enterprise (Conep) observes with greater “optimism” the role played by the country’s monetary authorities, he maintains that the economic measures that have been implemented between 2021 and 2022 will take effect next year “I think that we will grow in 2023 in a similar way to what was projected this year, which is 5%,” he said.
He motivated the private sector to continue making the corresponding investments, since the estimated positive, from the current context, must be observed in the long term, because inflation is not merely in the Dominican Republic, but a process that affects almost all countries globally.
In this sense, the executive vice president of Cap Cana said that investments during the crisis have boosted tourism, as a result it is one of the main sectors of thrust within the country’s productive activities, contributing to resilience and economic recovery.
Meanwhile, for the economist Haivanjoe Ng Cortiñas, the measures to curb inflation by the BC have been late, because “we have had persistent inflation for more than 26 months and it was the first of 2021 that the authority of the Board Monetary came to react by rising from 3 to 3.5%”, he indicated.