President Abinader announces a broad reform agenda, as he’s sworn in for his second term
During his August 16th swearing in ceremony for his second term, President Luis Abinader promised to implement a broad agenda of economic, social and political reforms that would make the Dominican Republic a developed country, with a strong democracy and a fair economy that would solve people's real problems. He also delivered a detailed report on the results of his first term. Although the president outlined a list of reforms to be promoted, and objectives to be pursued, he did not go into any detail about how these objectives would be achieved.
A few days before the swearing-in ceremony, Abinader presented his proposal for a constitutional reform, the timing meant to give him an opportunity to hear suggestions before sending this reform bill to Congress. We’ll have to wait a few more days to find out what strategy the government will follow, to present its reform proposals in other areas as well.
It is worth noting that, while several heads of state and top government representatives were in attendance at Abinader’s swearing-in ceremony, the Declaration of Santo Domingo was issued, calling for the publication of Venezuela’s recent electoral records, and for the respect of the will of Venezuelans.
Economic activity accelerated in June, to 6.2% y/y. That’s good news for the authorities, who are betting on the economy expanding at its potential rate in 2024. Although y/y inflation in July remains at the lower end of the range, monthly inflation began climbing in June.
The monetary policy rate remained unchanged in July, but a slightly greater slack in the economy's liquidity conditions was evident. Yet the average monthly interbank interest rate continued to rise, while the lending rate remained low in June and July, and private sector credit growth was lower in July compared to June.
The average exchange rate appreciated slightly in July, in a context of expansion of the main sources of foreign currency generation in June.
A budget amendment was approved, with a spending increase to be mainly financed by tax revenues received in H1 2024, which were higher than originally budgeted. Two laws were also approved in July that are part of the set of laws aimed at modifying the fiscal regime: the Fiscal Responsibility Law and Law 25-24 that modifies article 11 of Law No. 11-92, which approves the Tax Code of the Dominican Republic.
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