Dominican Republic: Economic activity plunges in April
June 8, 2020
Economic activity was down 29.8% year-on-year in April (March: -9.4% year-on-year) due to Covid-19 containment measures, which included a curfew, border closures and the shutdown of non-essential businesses. Looking at individual sectors, the hotels, bars and restaurants; construction; and mining sectors saw the sharpest declines.
As the Central Bank commented in its press release, the economy likely bottomed out in April, and future economic activity readings should exhibit less pronounced declines, due to the reopening of the economy from mid-May and as the impact of March’s substantial monetary easing is felt. That said, the possible reinsertion of lockdown measures if case numbers rise sharply is a downside risk.