The economy grew 4.1% in 2013 but unemployment continues at 15%
SD. After a burst at 7.2% in the fourth quarter, the growth of the Dominican economy during 2013 settled at 4.1% which surpasses the 3% growth that was estimated by the economic team since the start of the year.
“It went beyond all expectations,” exclaimed the governor of the Central Bank, Hector Valdez Albizu, as he announced on Thursday the preliminary results of the economy during a press conference in the Americo Lugo Hall of the Central Bank.
After an extensive presentation of good results, the maximum authority of the monetary policy commented: “These are a lot of positive reports.”
But the unemployment rate, which behaves as if immune to the economic growth, is still at 15%, higher, even, that the 14.5% registered in 2012. Valdez Albizu explains it like this: while it is true that during 2013 there were 69,801 new jobs created, this increment was absorbed by the growth of the economically active population, keeping unemployment immovable and leaving the old unemployed without jobs.
The official attributed the growth to the coordinated measures of the fiscal and monetary policies, applied since last May. He mentioned the dynamics of public spending in support of the micro-, small, and medium companies, farming and housing construction.
Moreover, he stressed as a crucial factor the freeing up of RD$20.2 billion in resources from the legal reserves ordered by the Monetary Board on 8 May 2013 which permitted the channeling of credit to manufacturing, farming, commerce, housing and personal consumption.
The information on the results of the economy were released to reporters that were present through a presentation by Hector Valdez Albizu and by a press communique that was given out as the press conference ended.
Nevertheless, different from former years, a detailed report with the necessary data for carrying out economic analysis was not released or given out.
The sector with the greatest movement was mining, which was affected by the startup of the exploitation of the Pueblo Viejo gold mine, grew 151%. This was followed by construction (7.3%) pushed along by the increase in financing that permitted the construction of 3.450 new housing units; hotels, bars and restaurants (6.3%); financial intermediation and insurance (10.5%) and farming (4.4%).
The sectors with a more modest growth were local manufacturing (0.5%); free zones (2.5%); and services (3%). And commerce showed signs of a recovery with a 2.0% growth in the last quarter, said Valdez Alvizu.
During 2013 inflation was kept at 3.88% which is below the goal for the year which was set between 4% and 5%.
In the meantime, the balance of payments, which registers all of the monetary transactions of the country with the rest of the world, closed with a surplus of US$938.5 million he said. Regarding the current accounts deficit, this fell to 4.5% of GDP (in 2012 it was 6.7%) according to the words of the Central Bank governor.
In spite of being the unlucky number year 13, last year was ” extremely satisfactory.”
Central Bank promise
“I guarantee the stability of the exchange rate in 2014,” the Central Bank governor, Hector Valdez Albizu, promised.
“Our commitment is to the control of inflation,” he said. And he added that as a consequence, if inflation is controlled, the exchange rate is controlled,
For 2014, the goal of the monetary program is to achieve an inflation rate of between 3.55 and 5.5%.
Category: DR News |