Dominican Republic: Economic activity remains strong at the outset of the year
March 28, 2019
The Dominican Republic’s economy continued to expand at an elevated pace in the first two months of 2019, although year-on-year growth was down somewhat from the rates observed last year, due to a less favorable base effect. According to the Central Bank’s monthly indicator for economic activity (IMAE, Indicador Mensual de Actividad Económica), growth clocked 5.8% year-on-year in February, and averaged 5.9% in the first two months of the year.
The construction, mining and financial services sectors performed particularly well, growing close to or above 10% annually in January-February. Looking at GDP by expenditure, investment and private consumption supported the economy, underpinned by a healthy credit expansion and supportive monetary conditions.
Looking ahead, the economy should maintain a strong growth trajectory, although there will still be a slowdown compared to 2018 amid ebbing momentum in the U.S and a tough base of comparison following stellar growth in 2018.
Author: Oliver Reynolds, Economist