Domin. Rep. Economic Outlook
July 14, 2020The economy likely plummeted in the second quarter as the full force of Covid-19 was felt. GDP was down roughly 30% year-on-year in April, with the hotels, bars and restaurants; construction; and mining sectors particularly hard hit. Moreover, visitor arrivals in April and May virtually stopped altogether due to border closures, hitting the crucial tourism sector. More positively, the government reopened international borders from 1 July, which should help rekindle economic activity heading into Q3. Nevertheless, the recovery in the tourism sector will still be gradual, due to ongoing domestic restrictions and downturns abroad. Meanwhile, in politics, opposition leader Luis Abinader won the 5 July presidential elections and will assume office in mid-August. Broad policy continuity is expected.
Dominican Republic Economic GrowthThe economy is seen contracting this year. Social distancing measures will restrain domestic activity, while the downturn in the U.S.—the key source of remittances, tourist arrivals and exports—will hit the external sector. Fiscal and monetary stimulus should limit the downturn, although elevated new Covid-19 cases and instability in neighboring Haiti are risks to the outlook. FocusEconomics panelists see the economy shrinking 4.2% in 2020, which is down 0.7 percentage points from last month’s forecast, before expanding 5.6% in 2021.
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
August 4, 2020
The economy contracted 16.8% in the second quarter according to monthly economic activity (IMAE) data as domestic lockdown measures and the border closure crushed activity (Q1: +0.2% year-on-year).
July 31, 2020
At its end-July meeting, the Central Bank (BCRD) left its policy rate unchanged at 3.50% for the fourth straight meeting.
July 16, 2020
Consumer prices rose 1.70% over the prior month in June, contrasting May’s 0.11% fall.
July 16, 2020
Economic activity was down 13.6% year-on-year in May.
June 30, 2020
At its end-June meeting, the Central Bank (BCRD) left its monetary stance unchanged for the third straight meeting, after substantial easing in March to combat the Covid-19 fallout.