Dominican Republic: Growth remains sprightly in October thanks to looser monetary stance
November 30, 2019
The economy expanded 5.2% in October according to Central bank data, up slightly from September’s 5.1% growth.
While a breakdown by sectors is unavailable, the Central Bank’s recent monetary easing—in the form of 100 basis points of rate cuts since June and a DOP 34 billion liquidity injection—supported credit provision and was likely an important driver behind October’s reading.
Looking ahead, monetary stimulus measures should continue to feed through to the economy in coming months, aiding consumption and investment. Turning to 2020, growth is likely to ebb in line with a slowing U.S. economy, although the Dominican Republic should continue to outperform regional peers.
Author: Oliver Reynolds, Economist