Economic performance and policy implementation have deteriorated in the past two years in the Caribbean nation, the IMF said in a statement today. The economy will probably grow less than 4 percent this year after expanding 7.8 percent in 2010 and 4.5 percent last year, according to the statement, which followed a Nov. 5-16 visit to the country by IMF staff.
Dominican banks are “well capitalized” and recent changes to boost tax revenue are a positive development, the fund said.
“Macroeconomic policies should be geared towards reducing fiscal and external vulnerabilities,” the IMF said. That would require a stronger fiscal position and “a tighter monetary stance that is consistent with strengthening the international reserves position.”
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