Domin. Rep. Economic Outlook
October 13, 2020Recent data suggests that the economy remained downbeat in Q3, although the performance was likely much improved from Q2’s coronavirus-induced collapse. Economic activity contracted sharply in July–August—albeit at a softer rate than in the second quarter—due to depressed activity in the hotels, bars and restaurants sector amid weak tourist arrivals. More positively, remittances surged in July and August owing to a stronger U.S. labor market, which should have supported private consumption somewhat. In politics, the government presented the draft 2021 budget to parliament in early October. Total spending is expected to fall sharply from 2020, as the government looks to rein in the fiscal shortfall and crisis-related expenditures ease, which will likely weigh on the recovery somewhat next year.
Dominican Republic Economic GrowthThe economy will shrink sharply this year, amid prolonged domestic Covid-19 restrictions and a depressed tourism industry. Next year the economy should bounce back as the external sector recovers, although a possible lengthy pandemic, a slow recovery in tourist arrivals and instability in neighboring Haiti are risks to the outlook. FocusEconomics panelists see the economy shrinking 5.4% in 2020, before expanding 5.6% in 2021, which is unchanged from last month’s forecast.
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
October 11, 2020
Consumer prices rose 0.60% over the prior month in September, down from August’s 0.78% rise.
October 1, 2020
On 1 October, the government submitted to Congress its 2021 budget proposal—the first under new President Luis Abinader.
September 30, 2020
At its end-September meeting, the Central Bank kept the policy rate at 3.00%, following a sizable rate cut in August.
September 29, 2020
Economic activity declined 7.2% compared to the same month a year earlier in August, which was above July's 8.8% decrease.
September 10, 2020
Consumer prices rose 0.78% over the prior month in August, down from July’s 1.88% rise.