Domin. Rep. Economic Outlook
October 9, 2018The economy continues to perform well so far in H2. Economic growth was rapid in July, supported by retail, mining and quarrying, and manufacturing in duty-free zones. Moreover, tourist arrivals were up year-on-year in July and August—likely supported by the strong U.S. labor market—while private credit growth remained in double-digits in September, despite moderating due to recent monetary tightening. Robust economic growth has boosted tax revenues, which grew markedly in the year to July. Coupled with constrained public spending, this has helped the government strengthen its fiscal position so far this year. This comes after a stellar economic expansion in H1, underpinned by a surge in fixed investment and buoyant private consumption. On 28 September, the government presented its 2019 budget to Congress, which aims to shrink the budget deficit through improved tax collection, while simultaneously increasing social spending.
Dominican Republic Economic GrowthGrowth will likely moderate slightly going forwards after several quarters of above-potential readings but should still compare favorably to regional peers. Strong fixed investment and spillovers from the expansion in the U.S. economy, which should continue to fuel remittances, exports and tourism activity, are expected to drive the economy. Downside risks stem from higher oil prices, tighter international financial conditions and elevated debt servicing costs. FocusEconomics panelists expect GDP growth of 5.5% in 2018. For 2019, panelists see the economy expanding 5.0%, which is up 0.3 percentage points from last month’s forecast.
Dominican Republic Economy Data
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Dominican Republic Facts
|Exchange Rate||49.92||0.80 %||Oct 12|
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Dominican Republic Economic News
October 4, 2018
On 28 September, the government presented its 2019 budget to congress, and parliamentary approval should not be too difficult given the government’s absolute majority in both chambers.
Dominican Republic: Inflation falls in August, Central Bank leaves rates on hold and adopts a more dovish stance
September 13, 2018
Consumer prices rose 0.03% in August over the previous month, contrasting July’s 0.02% fall.
September 5, 2018
The Dominican Republic’s economy continued to grow at an elevated pace in July, with economic activity rising 6.5% according to the Central Bank’s monthly indicator for economic activity (IMAE, Indicador Mensual de Actividad Económica).
August 31, 2018
Consumer prices fell 0.02% in July over the previous month, contrasting June’s 0.21% rise.
August 7, 2018
The Dominican Republic’s economy continued to accelerate in June, with economic activity rising 7.3% according to the Central Bank’s monthly indicator for economic activity (IMAE, Indicador Mensual de Actividad Económica).