Macroeconomic Forecast Dominican Republic

December 2006 | Macroeconomic Forecasts

BMI View: The current account deficit came in at an accumulated US$436.4mn (equivalent to 1.6% of GDP) in the first three quarters of 2006, representing a 77.5% y-o-y increase from the corresponding year-earlier period. The results reflect a notable increase in the demand for imports, which increased by 11.6% y-o-y to US$847.7mn, and the uptick in international oil prices. Free zone exports decreased by 5.9% y-o-y to US$3.3bn in the January to September 2006 period, highlighting the urgency with which the government must push through the final stages of the DR-CAFTA agreement with the US to improve the country's medium-term external position.

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