BTN News: The government of the Dominican Republic, led by President Luis Abinader, is considering the continuation of fuel subsidies as a strategic measure to control inflation, according to VÃctor -Ito- Bisonó, Minister of Industry, Commerce, and Mipymes (MICM). This announcement was made during the “Economic 2024: Transforming Data into Opportunities for Our People” forum, emphasizing the government’s commitment to maintaining economic stability and shielding citizens from the adverse effects of rising fuel prices. These subsidies, which have been in place, are credited with keeping the country’s inflation rates below double digits, a notable achievement given the economic challenges facing many other countries in the region.
Bisonó highlighted that the current economic policies have received international recognition for their effectiveness. The continuation of fuel subsidies, in particular, has been instrumental in keeping inflation under control, with the Consumer Price Index (CPI) remaining at manageable levels. The minister underscored that without these subsidies, the Dominican Republic might face inflationary pressures similar to those seen in countries like Colombia, Panama, Ecuador, and Chile, where the removal of subsidies led to significant cost increases for their populations.
For the week of August 17 to 23, the government allocated 410 million pesos in fuel subsidies. These subsidies include 17.99 pesos per gallon for regular diesel, 12.38 pesos for optimal diesel, 21.41 pesos for regular gasoline, 15.23 pesos for premium gasoline, and 13.61 pesos for LPG. This proactive approach is intended to prevent international price hikes from impacting local consumers, thereby preserving their purchasing power and contributing to overall economic stability.
Minister Bisonó also took the opportunity to highlight the achievements of his administration, particularly in the areas of anti-corruption, quality improvement, and transparency. He noted that the MICM has significantly contributed to the country’s GDP, with sectors under its jurisdiction generating an average of 9,732 million dollars in exports from 2020 to 2023. This period saw a remarkable 40% increase in exports, reflecting the resilience and growth of the Dominican economy.
Foreign direct investment (FDI) has also seen substantial growth, rising from 678 million dollars in 2019 to 1,133 million dollars in 2023. This represents 25% of total FDI and an average of 34% of foreign exchange generation between 2021 and 2023. These investments have bolstered key sectors of the economy, contributing to the employment of over 3 million people, which accounts for 66% of the country’s workforce. Bisonó attributed this success to the synergy between local industries and free trade zones, as well as initiatives such as the National Industrialization Plan, which has streamlined investment processes, improved regulatory frameworks, and fostered productive linkages and human capital development.
The minister also pointed to the importance of nearshoring as a strategy for attracting foreign investment and expanding existing operations. The “Ruta Industrial” initiative has played a key role in identifying challenges and opportunities faced by businesses, allowing the government to tailor its support to where it is most needed. This has been particularly important for sectors like tobacco, which is not only a significant economic driver but also a cultural heritage that is proudly marketed under the “Made in the Dominican Republic” label.
Looking ahead, Bisonó emphasized the government’s commitment to innovation and competitiveness over the next four years. The focus will be on creating high-quality jobs with better wages, fostering an environment of trust, stability, and well-being, both for international investors and within the broader economic landscape of the Dominican Republic. This forward-looking approach aims to continue the positive momentum and ensure sustained economic growth that benefits all segments of society.
