Dominican Republic

Economic Growth Comes to Virtual Standstill

The economy is taking a hit from the global economic downturn, in particular through weaker external demand, dwindling tourism and declining overseas remittances. As a result, economic growth came to a virtual standstill in the first quarter and will likely remain extremely weak throughout the year. On a positive note, due to rapidly declining inflation, the Central Bank has been able to slash interest rates in recent months, providing some support to domestic demand.