Dominican Economy 2004

El Caribe summarizes the performance of the DR economy in 2004. Overall, for the year, the economy grew by 2% with decreases in both the inflation and key interest rates. Although inflation for the year last summer had been projected at 45%, it ended the year at 28.74%. Interest rates charged by the Central Bank dropped from 59.6% to 25.3%, certainly a significant reduction, while the exchange rate against the dollar lowered from 42 to 31 pesos. The communications sector grew by over 19%, a great sign that technology is beginning to impact the country. All this was achieved in spite of the impact on tourism caused by some major hurricanes.

The Consumer Price Index report released by the Central Bank in November is also full of good news. Prices are finally declining on just about everything which shows up on the year end inflation rate reduction. Even prices on things like health care and transportation dropped in November.