Dominican Republic: Decline in economic activity softens in October
Economic activity dropped 4.3% year-on-year in October (September: -5.6% yoy). The result marked the best reading since February, signaling that the economy is gradually on the path to recovery. In October, activity continued to be dragged down by the hotels, bars and restaurants subsector amid still-subdued tourist arrivals, which more than offset growth in areas such as heath, telecommunications and construction.
Meanwhile, the trend pointed down, with the annual average variation of economic activity coming in at minus 5.4% in October, down from September’s minus 4.6%.
In the remaining months of the year the Central Bank sees the decline in economic activity continuing to moderate, although surging Covid-19 cases abroad and the domestic curfew will likely keep a lid on momentum. Next year, growth should return on a revival in tourism and external demand. However, the uncertain evolution of the pandemic at home and abroad is a downside risk.