Dominican Republic: Pace of economic growth speeds up considerably in Q2
August 25, 2016
The economy grew 8.7% in the second quarter of the year in annual terms, according to preliminary data from the Central Bank. Q2’s considerable expansion represented an acceleration over the already robust 6.1% growth registered in the previous quarter and the fastest pace of growth in six years.
In its flash release, the Central Bank of the Dominican Republic provided Q2 data for GDP growth, while for the breakdown of GDP by sectors it only provided H1 data in a year-on-year comparison. According to the Central Bank, in the first half of this year, the economy expanded 7.4%, accelerating from the 7.2% growth in H1 2015 on the back of improvements in the mining and quarrying, local manufacturing and agricultural sectors. In contrast, manufacturing in free economic zones, and the construction and service sectors decelerated. The mining and quarrying sector saw an impressive 25.1% year-on-year expansion in H1 2016 (H1 2015: -15.9% year-on-year). The local manufacturing growth rate accelerated from H1 2015’s 5.7% to 6.0%, while in the same period manufacturing activity in the country’s special economic zones swung from 5.8% growth to a mild 0.6% drop. The agricultural sector recorded a robust 8.0% increase (H1 2015: +4.4% yoy). The construction sector expanded a strong 17.7%, which nonetheless represented a slowdown compared to the 19.4% growth recorded in the first half of last year. Finally, growth in the services sector decreased slightly, from 6.4% in H1 2015 to 6.1% in H1 this year; the deceleration was driven by weaker growth in the retail sales and transportation sectors.