Dominican Republic: Economic activity records lowest expansion since February in October, but remains robust
Economic activity grew 9.7% year-on-year in October (September: +10.6% yoy). The result marked the worst reading since February, but still means that the Caribbean country is set for one of the highest growth figures in the region in 2021 and will exceed pre-pandemic output in the process.
Comparing the year-to-date breakdown for January–September to January–October, the services sector grew more strongly at 9.2% (January–September: 8.8%), while the hotels, bars, and restaurants sector performed particularly well amid improved visitor arrivals. Agricultural growth was also stronger in January–October relative to January–September. Nonetheless, manufacturing growth slowed.
Meanwhile, the trend improved, with the annual average growth of economic activity coming in at plus 9.6% in October, up from September’s 8.4% reading.
While year-on-year growth readings will keep falling ahead on a tougher base effect, underlying momentum should remain healthy next year as the vaccination rollout advances at home and abroad, tourist arrivals continue to recover and as U.S. stimulus measures boost remittances and demand for the Dominican Republic’s exports.