Domin. Rep. Economic Outlook
April 12, 2022After the economy recorded double-digit growth last year, activity appeared to weaken in Q1 2022, although this was largely due to a tougher base effect. Year-on-year growth in January–February was still robust, with the economy rebounding month-on-month in February amid the removal of remaining Covid-19 restrictions, after contracting month-on-month in January due to the outbreak of Omicron. Moreover, the tourist sector remains vibrant: Annual growth in visitor arrivals in January–February averaged 172%. However, a year-on-year fall in remittances and increased inflation in the first two months of Q1 bode poorly for private spending in the quarter. New government measures such as fuel subsidies will only go some way to cushion the blow to household purchasing power. In other news, the U.S. reduced its alert level for travel to the Dominican Republic in April, which should aid tourism ahead.
Dominican Republic Economic GrowthGDP growth should be lower this year due to a less favorable base effect, a normalization of remittances, elevated commodity prices and tighter monetary policy. That said, growth will likely remain healthy due to the recent removal of all Covid-19 restrictions, buoyant tourism and strong investment activity. FocusEconomics panelists see the economy growing 5.2% in 2022, which is down 0.4 percentage points from last month’s forecast, and expanding 4.6% in 2023.
Dominican Republic Economy Data
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Dominican Republic Facts
|Exchange Rate||52.96||0.80 %||Jan 01|
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Dominican Republic Economic News
April 12, 2022
Consumer prices rose 0.67% from the previous month in March, coming in below the 0.92% rise recorded in February.
April 4, 2022
Economic activity expanded 5.8% in year-on-year terms in February, which followed January's 6.3% increase.
March 31, 2022
At its end-March meeting, the Central Bank of the Dominican Republic (BCRD) decided to increase its policy rate by 50 basis points to 5.50%. The decision came as a surprise to some analysts, who had expected a smaller rate hike.
March 11, 2022
Consumer prices rose 0.92% from the previous month in February, lower than the 1.18% rise logged in January.
March 2, 2022
Economic activity expanded 6.3% in year-on-year terms in January, which was a deterioration from December's 10.6% increase.