Dominican Republic: Economy loses steam in January but remains solid
March 7, 2020
Economic activity grew 4.7% year-on-year in January, down from December’s 6.7% expansion but still marking a robust pace of growth compared to regional peers. January’s growth was driven by the construction and financial services sectors, as the economy continued to benefit from last year’s monetary stimulus.
Looking ahead, the Dominican Republic should record a healthy expansion over 2020 as a whole, underpinned by domestic demand. However, the coronavirus poses a downside risk to growth, due to the likely impact on tourism and external demand.
Author: Oliver Reynolds, Economist