The Economic Landscape in Central America and the Dominican Republic: External Challenges and Internal Strengths

Peer Reviewed icon Peer Reviewed
Date issued
Jan 2019
Subject
Economic Development;
Financial Market;
Foreign Direct Investment;
Financial Institution;
Monetary Policy;
Macroeconomy
JEL code
F30 - International Finance: General;
E22 - Investment • Capital • Intangible Capital • Capacity;
G21 - Banks • Depository Institutions • Micro Finance Institutions • Mortgages;
G20 - Financial Institutions and Services: General;
E31 - Price Level • Inflation • Deflation;
E44 - Financial Markets and the Macroeconomy;
G10 - General Financial Markets: General;
E20 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy: General
Country
Dominican Republic
Category
Monographs
This report describes the current situation of the region of Central America and the Dominican Republic and its outlook for 2019. It also analyzes the recent reduction in the food price pattern and its relationship with the expected increase in international prices and the local production . Finally, it examines the channels through which the reduction of global liquidity could be transferred to the region, including the banking sector, the financial markets, and the foreign direct investment inflows. It is worth noting that to date there have been no substantial effects in the region. However, it is important to continue monitoring the performance of the various transmission channels while strengthening the foundations to be better prepared for global events that increase risk aversion.
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