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Economy grows 7.5% in first 3 months
posted on: May 7 2010 17:12 by Royston. Viewed 1654 times.
The Dominican economy grew 7.5% in the first quarter of this year, with the construction sector, agricultural and trade making the greatest contribution to the positive numbers, said the Central Bank governor.
What is clear is that in the Dominican Republic, "things are going well, there are more jobs, we are on track and the nation is regaining lost growth," said Hector Valdez Albizu yesterday.
The construction sector, which is an indicator for other sectors, grew by 19.4% against the same quarter of 2009, when it fell by 21.9%; trade, which last year was down 7%, grew 15.7% in this quarter; agriculture grew 9.6%, similar to the same period of 2009. The governor said that the figures given "are a growth on growth."
The area of energy and water grew by 9.5%, the local manufacturing sector had an increase of 9.3%, while in the same period last year had grown 3.3 percent.
Another sector registering positive numbers was communications, which grew 6%. Although last year during the first three months it increased by 21.4%.
Hotels, bars and restaurants grew 3% in the quarter.
The "robust growth", as defined by Valdez Albizu, at a press conference yesterday exceeded the period January to March 2009, when the expansion was just one percent.
The Governor said that the policies undertaken by the monetary authorities contributed to growth, in addition to low interest rates, reduced reserve requirements and the facilities given to sectors such as construction that influenced economic activities by gaining access to credit.
In short, according to preliminary results available, 92% of the sectors of economic activity are on the right path in the first three months of this year.
Valdez Albizu, said that the impression that "things have been improving," is supported by a World Bank survey that showed poverty in the country had fallen from 43% in 2004 to 34% today. He said that extreme poverty, meaning earnings of less than US$60 per month, fell from 16% to 9%.
With regard to external debt, he claimed that at 17.5% it is lower than that of other nations.
Albizu said that the bank was on target to comply with the commitment to the IMF to close the year with reserves of US$2,105 million, having current reserves of $US1,250 million.
The bank was due to receive yesterday the proceeds from the sale of US$750 million in bonds on the international market.
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