Economy will grow 4.5% and inflation will be 8%

Gross domestic product (GDP) will end 2011 with a real growth of 4.5%, higher than the average in the region of Latin America and the Caribbean. Very preliminary data are based on programmes for production and sales in closing a year of major companies that make up the activities economic.

This was revealed yesterday the Governor of the Central Bank, Héctor Valdez Albizu, in an interview granted to LISTÍN DIARIO, which explained that end of year figures are not yet available given that the companies provide the results of its operations a month after completion of each period. Inflation will be from 8%

Valdez, who had promised this interview to provide details of the behavior of the economy, stressed that to achieve this growth had been a titanic effort that only has been made possible by the support of President Leonel Fernandez and his commitment to the stability of the economy in the Middle u000aof a global financial turbulence historical.

"I think, Jairon, which achieve this growth, as I have said on other occasions, has been a titanic task only possible by the support of President Leonel Fernandez and his commitment to the stability of the economy...," said Valdez Albizu, who noted that last week the Economic Commission for Latin America (ECLAC) forecast also increased similar.

For the Governor of the Central Bank, this estimate would be indicating a satisfactory performance of the Dominican economy consistent with the macroeconomic framework and monetary program. In that regard felt that Dominicans should feel optimistic, because despite the adverse international environment has been able to overcome this deep global crisis with relative success and sustain growth and macroeconomic stability.

"This has been possible thanks to a combination of a monetary policy more" u000a"neutral with a setting of public spending during the first half of the year, with the aim of moderating the impact of imported on prices, inflation adjusted domestic demand to the potential of the economy," said Valdez Albizu.

On which sectors would be boosting growth, detailed, by way of first, according to preliminary estimates of the Department of national accounts, activities that present positive growth accounting for more than 90% of nominal GDP.

Highlighted the contribution to growth in 2011 for those oriented towards external demand, mainly export processing zones, tourism and mining. In his opinion, the case of zones zones is very positive news, because for the first time since 2006 this sector has managed to reverse the declining trend that showed growing over 14% in terms of value-added to GDP and 19% in its contribution to revenues from currency. u000aOther information stressed is that despite international crisis, 2011 November had reached 148,867 passengers last year and the data available on the flow of non-residents, which includes domestic and foreign, pointing to growth around 5% to close a year.

With respect to the performance of the agricultural sector, stressed that it has maintained healthy growth, hoping that at the end of 2011 it will grow above the average for the economy as a whole, contributing to supply domestic demand, tourism and even significantly increasing export volume, taking advantage of high prices of commodities on international markets.

Valdez Albizu explained that this is the case of traditional export commodities such as sugar, coffee, cocoa and tobacco, as well as non-traditional such as organic products, highly quoted in international markets such as banana, chili, u000avegetables and mango, among others. Other positive news showing preliminary results, according to the Governor of the Central Bank, is that the industrial sector as a whole would grow approximately 6.5%, with the local growing around 5.5 manufacture %.

"Is worth noting that the construction sector would grow close to 3.0 per cent", stepped forward.

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Inflation controlled despite the
function environment of the BANCENTRAL
the Governor of the Central Bank explained that inflationary pressures caused by high prices of oil and other primary goods, has been a subject of concern for all net-importing countries of these goods, but that in the case of Dominican, being price stability over the primitive function of the Central Bank, has been a truly daunting task to keep inflation in single digits during 2011.

Offered the scoop that inflation at the end of u000a2011 will be on Al 8.0%, i.e. in single digits. Is "to give you an idea of the impact of the external shock on domestic inflation, 73% of the cumulative inflation growth mainly due to exogenous factors, resulting in increases in the prices of transport fuels, electricity, food and non-alcoholic beverages", said. He also stressed that there are significant benefits with the implementation of a scheme of inflation targeting (inflation targeting), because the economic agents will have wide certainty because they know in advance the inflation target that the Monetary Authority is working to achieve.

Mining will be determinant
Héctor Valdez Albizu ahead of the monetary program for 2012 envisages economic growth between 4.5% and 5.0%, with a target of inflation of 5.5%, as well as a current account deficit which is situated around 5.5% of GDP, assuming even that the prices u000aoil will remain above the US$ 100 on average during the entire year.

"This result considered improving the performance of the mining sector, with exports of gold for $1,300 million, ferronickel around $600 million and drive to continue registering non-traditional exports," explained.

To ask you about a new year message, argued that its inescapable commitment is with the macro-economic stability and inflation control. "As I said last October in the discourse of anniversary of the Central Bank: A nation is like a balance, to maintain the balance needing support, stability macroeconomic.

Something that we have won, once we lost, we must take care with much zeal", expressed.

Urged Dominicans of goodwill, both public sector and the private sector, to banish the pessimism, the inertia and the cultural practice of considering that "everything" u000a"it is wrong".

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