Dominican Republic: Economic activity grows at record pace in April
Economic activity expanded 47.1% year-on-year in April (March: +10.6% yoy). The reading marked the best result on record. While partly the result of a favorable base effect, economic activity in April was also higher than in April 2019, highlighting that underlying economic dynamics improved in the month. The economy was aided by the vaccination rollout—which has been brisk compared to regional peers—surging remittances, the strong expansion in domestic credit and recovering visitor arrivals.
Meanwhile, the trend improved notably, with the annual average variation of economic activity coming in at a one-year high of minus 0.8%, up from March’s minus 6.0% reading.
While year-on-year growth rates will likely ebb ahead on a less pronounced base effect, underlying momentum should strengthen as the vaccination rollout continues at home and abroad, and thanks to vast U.S. stimulus. However, still-high new Covid-19 cases pose a risk.