Regarding the effects of high inflation, Pável Isa Contreras said that the current government administration has promoted significant salary increases over the past and stimulated economic growth to increase labor income.
Santo Domingo Dominican Republic. (September 2023). The Minister of Economy, Planning and Development, Pavel Isa Contreras, highlighted the effectiveness of the policies implemented by the state to control the rate of price growth through subsidies for food and fuel and a controlled monetary policy.
“Inflation rate has already normalized. We are seeing a relatively normal pace of price growth, which is the pace we saw before the pandemic. “The anti-inflationary policy has been effective, with a combination of subsidies to prevent food and fuel prices from rising too much,” the economist and researcher said when approached by reporters.
The minister clarified that reducing the inflation rate does not mean that prices will come down, but rather that their growth rate will come down. “In all the economies of the world, prices are increasing every year. The challenge is to maintain reasonable growth,” he said.
The head of the Ministry of Economy highlighted that the Dominican Republic was able to normalize the pace of price growth faster than many countries.
Isa Contreras pointed out that the current government administration has promoted significant salary increases over the past and stimulated economic growth to increase labor income, regarding the effects of high levels of inflation that have affected people’s purchasing power.
The inflation rate is expected to be around 4% by the end of this year, which is considered a normal level for the country.
In turn, the economist pointed out that the second half of the year is estimated to witness more economic activity.
SD2050 Escrow Signature
Minister Isa Contreras revealed the terms with Andrés van der Horst, general manager of Fiduciaria Reserves, after signing the agreement for the Santo Domingo Public Trust 2050 (SD2050).
The role of the Ministry of Economy in said agreement is to be the representative of the Dominican government, its immigration and trustee of the public trust.
