Dominican Republic: Economic growth moderates in the first quarter
May 25, 2011
According to preliminary Central Bank estimates for the first quarter, GDP increased 4.3% over the same period last year. The reading came in below the 8.3% rise recorded in the last quarter of 2010, marking the weakest quarterly result since the Q3 2009. However, the result was affected by a high comparison base, as the economy had expanded a strong 7.5% in the first quarter of 2010. At the sector level, the moderation was broad-based, with all the main sectors slowing compared to the previous quarter. The services sector experienced the strongest moderation, expanding 2.5% year-on-year, down from the 7.3% yoy rise recorded in the previous quarter. Finally, while agriculture rose a paltry 0.5% over the same period last year (Q4 2010: +4.1% yoy), industry remained resilient and expanded 7.2% (Q4 2010: +9.2% yoy), as a strong pick-up in construction and mining (Q1 2011: +7.9% yoy; Q4 2010: +4.1%) partially compensated for moderation in local manufacturing (Q1 2011: +6.8% yoy; Q4 2010: +8.4%) and in free-trade zones manufacturing (Q1 2011: +10.3% yoy; Q4 2010: +26.9%). More complete data for economic growth in the third quarter will be published on 30 June. The Central Bank expects the economy to grow 5.5% in 2011.
Author: Armando Ciccarelli, Head of Data Solutions