As a country, the Dominican Republic is a small economy, but it has been able to overcome this crisis. The fact that gross domestic product (GDP) grew much faster than expected, despite the oil situation affecting the global economy, is a positive sign for the nation.
If we add the recognition made by the investment division of the prestigious Bank of America, which has made a report related to the economic situation of our country, highlighting the efficiency with which the administration of President Luis Abinader has made in the face of the complex global inflation crisis.
It is worth noting the reports of the Central Bank of the country, where they indicate the large reserves of liquidities held by the Dominican State and the average interannual growth of the monthly indicator of economic activity (IMAE), which placed it at 5.6% for January-June 2022.
Reference is also made to the tourism sector, which accounted for a third of GDP growth in the first half of this year, surpassing pre-pandemic levels, whose projections are based on reliable data that predicts that , by 2023, the number of vacationers arriving by plane and cruise ship will increase to 7.7 million and 1.7 million, respectively, in the Dominican Republic.
In its report, the Central Bank on the fiscal situation of the Dominican Republic: after overcoming the peak months of fuel and food subsidies, when commodity prices were at their highest levels, it is evident that the budget deficit is lower than that observed in 2021 (2.5%); therefore, it is estimated that the financial health of the Dominican government will be able to successfully face the global economic crisis.
State finances have a strong liquidity position. According to the Bank of America report, the Dominican government has sufficient cash deposits; verifiable data from the Superintendence of Banks shows that the government held DOP 146 billion ($2.75 billion) in commercial banks (mostly BanReservas) as of June this year. Meanwhile, Central Bank statistics show DOP 114 billion ($2.15 billion) of central government deposits in the Central Bank at the end of July 2022. This represents nearly $5 billion in liquidity. Therefore, in a scenario of global economic crisis, the Dominican Republic has a vital reserve to face the challenges of the inflationary crisis. In addition, the administration of President Luis Abinader is internationally recognized as an efficient, serious and responsible government in the management of its finances, standing out at a time when the inflationary and economic crisis affects the world in a scenario of pandemic and conflicts. of war. .