The director of the General Directorate of Government Accounting (Digecog), Félix Santana García, stated that given the level of indebtedness, which now stands at almost 70% relative to gross domestic product (GDP), “nothing can be done if the money diverted by the prevailing corruption of previous government is not recovered and if the pandemic does not diminish its negative effects “.
Santana alluded to the data contained in the report published by the Economic Commission for Latin America and the Caribbean (ECLAC) on the balance sheet of the economies of Latin America and the Caribbean 2020 after the impact of coronavirus (COVID-19) in the countries that make up the area.
“Although the economic and financial picture of the Dominican Republic presented by ECLAC is not entirely favorable for 2021“The situation will improve as the pandemic diminishes through the massive application of vaccines and the money diverted by the corruption of previous government is recovered,” he said, according to a statement.
The study notes that in the Dominican Republic the GDP reported a fall of 5.5% and at the end of 2020 the fiscal deficit of the central government is estimated at 9.9% of GDP, when it had been of 2.2% in 2019.
The report indicates that the current account deficit will close at 3% of GDP, while in 2019 it was 1.3%, due to the contraction in revenue due to the fall in tourism. Year-on-year inflation will close at a 5% limit in the target range and unemployment fell by 8.8%.
Santana complained that tax collection contracted by 17.1%, with a 19.1% reduction in taxes on goods and services; while social spending showed its most significant rise of 192.6% real year-on-year.
He explained that to face the crisis the Government received loans from various international agencies such as the World Bank (US $ 150 million), the Inter-American Development Bank (US $ 486 million), the International Monetary Fund (US $ 650 million) and the issuance of sovereign bonds totaling $ 3.8 billion, demand reached $ 9.6 billion, 2.5 times the initial amount issued.
“Yet President Lluís Abinader has never been in favor of debt“In the face of this economic and financial picture presented by ECLAC on the Dominican Republic, there has been no other more viable alternative to making use of the confidence offered by the Government to obtain international loans,” he said.
Santana believes that “with transparent management, the fight against corruption, good investments and control of the pandemic, the Dominican nation will have a more promising 2021 in the face of the crisis situation that has not been caused by the current authorities, but has been inherited “.