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
5 years of Dominican Republic economic forecasts for more than 30 economic indicators.
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Dominican Republic Facts
|Exchange Rate||52.96||0.80 %||Jan 01|
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Dominican Republic Economic News
May 31, 2021
At its end-May meeting, the Central Bank (BCRD) decided to keep the policy rate at 3.00%.
May 26, 2021
Economic activity expanded 47.1% year-on-year in April (March: +10.6% yoy).
May 13, 2021
Consumer prices rose 0.41% in April over the previous month, a smaller increase than the 0.60% rise recorded in March.
April 30, 2021
At its end-April meeting, the Central Bank decided to keep the policy rate at 3.00% for the eighth month running.
April 28, 2021
Economic activity expanded 10.6% year-on-year in March (February: +1.1% yoy).