Santo Domingo. – The government changed the forecast of economic performance and estimates that the Gross Domestic Product (GDP) will decline by 4% at the end of 2020, which would be the worst result of the Dominican economy in more than 10 years.

This is a correction agreed between the authorities of the Ministry of Economy, Planning, and Development, Finance, and the Central Bank of the new government of Luis Abinader.

The previous administration calculated that the economy would not grow this year, as the variation in GDP for this year remained at 0%, based on a mid-term review of the macroeconomic estimates.

The new economic performance goal is derived from the preliminary figures contained in the 2019-2020 Macroeconomic Outlook of August 19 of this year, as stated in the letter sent this Monday by President Abinader to Congress with the reformulated 2020 budget.

“The lower economic activity resulting from the health measures adopted to protect the health of the population in the face of the COVID19 pandemic imposes an important challenge as a consequence of the reduction in tax collections,” the letter says.

On August 24th, the Executive Power sent a complimentary budget bill to the National Congress for 202 billion pesos that will be obtained through domestic or external financing.

The new budget revenue estimate is 610,362.6 billion pesos, while the calculated expenses are 1.2 billion pesos, which marks a deficit of resources of 599,225.4 billion pesos that must be covered to balance the fiscal accounts.