World Bank: DR positioned for growth
A World Bank report, “Latin America: In Search of Lost Growth,” released on Tuesday 14 April 2015, says that the DR is in a better position to maintain its economic growth than most countries in Latin America. The World Bank economists highlight that the recent decline in commodity prices resulting from weaker demand from China has affected regional growth for the Latin America and Caribbean region.
The report adds that regional commodity exporting countries from South America are driving the economic slowdown in the region. “In contrast, the countries that benefitted from terms of trade gains (mostly the commodity importing countries in Central America and the Caribbean, which struggled in the aftermath of the 2008-2009 global financial crisis) are now facing a more benign external environment and experiencing steady or improving growth rates that are at present generally above the regional average.”
The report states that in contrast, Central American economies like the Dominican Republic and Guatemala, as well as some South American economies like Bolivia and Colombia, grew in 2014 at rates that exceeded their beginning of year forecasts.
The report highlights that the Dominican Republic is among the countries that are benefitting from the recovery in the United States at a time when moderate growth is expected for China. China appears to be settling down around a lower and more sustainable growth trajectory where consumption will play a bigger role.
This semiannual report, a product of the Office of the Chief Economist for Latin America and the Caribbean Region of the World Bank, examines the macroeconomic challenges for Latin America and the Caribbean (LAC) as the global economy settles into equilibrium with more modest growth and lower commodity prices.
Source: DR1, live.worldbank.org
Category: DR News |