Dominican monetary policies pave way for growth

Significance

The relative sluggishness is due partly to the delayed impacts of financial tightening and reduced global demand. While domestic demand has been the primary engine of growth, the pace of private consumption has slowed compared to the elevated levels of the preceding year.

Impacts

• The president's reluctance to risk losing support ahead of next year’s election makes significant legislative changes unlikely before May.
• The peso is expected to remain stable in the near term, supported by increased foreign reserves from multilateral loans.
• The government's ongoing push for mining and energy-sector development will prompt increased protests from critical communities.
• Remittance income is expected to exceed USD10bn in 2023, for the second time in history.