Dominican Republic: Economic activity remains strong at the outset of the year
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.