|Despite the upbeat reports by government officials regarding the effects of the international financial crisis on the DR, a report issued by the Royal Bank of Scotland (RBS) says the crisis has heavily impacted the DR. The RBS forecasts the DR will only grow by 0.6% in 2009. The report also indicates that tax revenue has decreased by 15%, during the first four months of the year and will only make up 13.5% of the GDP at year's end down 2.3% from 2008. |
According to the report, exports are down 24%, tourism income declined 8%, remittances dropped 7% and direct investment is down 40%.
The report explains that a large decline in imports has allowed for a reduction in the deficit of the current accounts on the balance of payments, which is expected to finish the year at 5.7% of the GDP, down 2.2% from 2008.
RBS expects the central government's debt to increase by 27% of the 2009 GDP, which is 2.5% higher than 2008.
Central Bank Governor Valdez Albizu has said that the Dominican economy grew by 1% during the first four months of 2009 and that the accumulated inflation rate during the last five months was only 1%. He says the government's goal is to achieve 3% growth by year's end.
RBS, Britain's biggest bank in balance sheet terms, itself posted the largest annual loss in British corporate history last year.