Domin. Rep. Economic Outlook
December 7, 2017The economy seems to have found its footing following a lackluster performance through most of Q2 and Q3, the latter partly the result of severe disruptions in economic activity caused by Hurricanes Irma and Maria. A looser monetary stance and measures implemented by the Central Bank have proven successful at shoring up growth in credit lending to the private sector as well as increasing the money supply, annual growth of which stagnated in June but has been accelerating since. Remittances up to September recorded another double-digit growth rate, which likely provided some support to private spending in the third quarter. However, the country is not completely out of the woods: Tourism arrivals for October showed a second consecutive decline compared with the previous year; the Central Bank has attributed this to the hurricane-induced temporary shutdown of tourist facilities in the north-east of the country.
Dominican Republic Economic GrowthOur panelists expect economic activity to regain some momentum in the second half of the year. GDP growth will be buoyed by the Central Bank’s accommodative monetary measures as well as by the government’s USD 431 million fiscal stimulus package aimed at rekindling growth. External forces will also support the domestic economy: A weaker peso will boost the country’s exports next year, while healthy remittance inflows will buttress household spending. FocusEconomics panelists expect GDP of 4.6% next year, unchanged from last month’s forecast. For 2019, panelists see the economy expanding 4.5%.
Dominican Republic Economy Data
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Dominican Republic Facts
|Exchange Rate||48.06||0.80 %||Dec 06|
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Dominican Republic Economic News
October 31, 2017
Economic activity increased 3.7% in August from the same month a year earlier, according to the Central Bank’s monthly indicator for economic activity (IMAE, Indicador Mensual de Actividad Económica).
October 10, 2017
Consumer prices increased 0.64% in September compared to the previous month, which was above August’s 0.57% month-on-month increase and the highest rise in nine months.
September 30, 2017
A second data release confirmed that the economy’s performance in the second quarter was lackluster, with economic momentum shifting into a lower gear on a slump in fixed investment growth.
September 11, 2017
Consumer prices increased 0.57% in August compared to the previous month, which was above July’s 0.18% month-on-month increase.
August 31, 2017
In Q2, the economy struggled to keep up with the performance seen in recent years.