Above: the Dominican Republic (CJ Photo)

By the Caribbean Journal staff

Economic growth in the Dominican Republic decelerated in early 2013, according to the International Monetary Fund, which recently concluded a post-programme monitoring discussion with the country.

The deceleration came in the context of “fiscal contraction and weak confidence,” the Fund said, with real GDP growth at 1.6 percent in the first half of 2013.

That came after the country’s economy grew by nearly 4 percent in 2012 and 4.5 percent in 2011.

The IMF said the outlook for the Dominican Republic was for a “gradual economic recovery,” but downside risks remained, mostly from challenges to economic recovery in the US. oil price shocks, lower gold prices and large public sector financing needs.

The country’s real GDP is projected to grow by 2.0 percent this year, according to IMF estimates.