Dominican Republic Economic Activity May 2021

Dominican Republic

Dominican Republic: Economic activity growth dips in May

June 29, 2021

Economic activity expanded 21.2% year-on-year in May (April: +47.1% yoy). While May’s reading was partly driven by a base effect, economic activity was also 4.7% higher than in May 2019. Construction and domestic manufacturing led the expansion in May. Moreover, the hotels, bars and restaurants subsector surged in annual terms, although this was largely because the country was closed to international tourists in May last year, as visitor arrivals are still only three quarters of their pre-pandemic levels.

Meanwhile, the trend improved sizably, with the annual average variation of economic activity coming in at an over one-year high of plus 2.0% in May, contrasting April's minus 0.8%.

High new Covid-19 cases forced the government to reimpose some restrictions from late-May, which will likely drag on activity slightly in the near term. However, underlying momentum should strengthen later in the year as the vaccination rollout continues at home and abroad, and thanks to vast U.S. stimulus. Year-on-year GDP growth will continue to ebb on a less favorable base effect.

FocusEconomics panelists see the economy growing 5.8% in 2021, up 0.5 percentage points from last month’s forecast, before expanding 5.1% in 2022.


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Dominican Republic Economic Activity Chart

Dominican Republic Economic Activity May 2021

Note: Year-on-year changes of GDP in %.
Source: Dominican Republic Central Bank and FocusEconomics Consensus Forecast.

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