Domin. Rep. Economic Outlook
November 10, 2020The economy contracted 7.2% in Q3 according to preliminary data, much milder than Q2’s 16.9% collapse. The softer drop was likely due to an incipient recovery in tourism following the reopening of borders in July. Moreover, remittances surged in the quarter as the U.S. labor market recovered, which should have buttressed private consumption. However, the economic panorama was still downbeat: The hotels, bars and restaurants subsector fell, as visitor arrivals were still down sharply year-on-year, while the retail and transport sectors also declined. Turning to Q4, momentum should be improving, with visitor arrivals likely up from Q3. However, the extension of the curfew in mid-October will continue weighing on domestic activity, while Haiti’s decision to impose a USD 800 fee on the Dominican Republic’s exports will hurt the external sector—Haiti is the country’s second most important trading partner.
Dominican Republic Economic GrowthThe economy should bounce back next year, supported by a recovery in the U.S.—the key source of exports and remittances—and stronger domestic activity. However, a potentially slow recovery in tourist arrivals, further waves of Covid-19, instability in neighboring Haiti and elevated public debt are risks to the outlook. FocusEconomics panelists see the economy growing 5.2% in 2021, down 0.4 percentage points from last month’s forecasts, before expanding 4.8% in 2022.
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
March 31, 2021
At its end-March meeting, the Central Bank (BCRD) kept the policy rate at 3.00% for the seventh month running.
March 30, 2021
Economic activity expanded 1.1% compared to the same month a year earlier in February, which contrasted January's 1.8% decrease.
March 16, 2021
Economic activity decreased 1.8% year-on-year in January (December: -1.0% yoy), with the sharper decline likely due to the tougher restrictions in place during the month to stem rising Covid-19 cases. Meanwhile, the trend pointed down, with the annual average variation of economic activity coming in at minus 7.2%, down from December's minus 6.7% reading. The economy should bounce back strongly this year.
March 12, 2021
Consumer prices rose 0.68% in February over the previous month, a smaller increase than the 0.97% rise seen in January.
Dominican Republic: Central Bank keeps rates steady in February, but provides extra financing to firms
February 28, 2021
At its end-February meeting, the Central Bank (BCRD) kept the policy rate at 3.00% for the sixth month running.