Dominican Republic: Decline in economic activity softens in November
December 29, 2020
Economic activity fell 3.4% compared to the same month of the previous year in November, which was a less pronounced contraction than October's 4.3% decrease and marked the best result since February. November’s result was underpinned by a much softer contraction in the mining subsector and stronger growth in construction. However, the hotels, bars and restaurants subsector remained in the doldrums amid still-weak tourist arrivals. The gradual economic recovery since the middle of the year has been supported by fiscal and monetary stimulus, and surging remittances.
Meanwhile, the trend pointed down, with the annual average variation of economic activity coming in at minus 6.1%, down from October's minus 5.4% reading.
The decline in economic activity could have moderated further in December, although at the outset of 2021 momentum will likely be held back by the tightening of restrictions, including tougher curfew hours and the closure of dine-in services at bars and restaurants.