Dominican Republic: Economy decelerates in Q1
July 8, 2015
According to more detailed data from the Central Bank, the economy expanded 6.5% in the first quarter, thus marking a deceleration over the 6.6% expansion observed in the previous quarter. The figure matched the expansion reported in the preliminary estimate and marked the slowest increase in nearly two years.
In Q1, private consumption grew 4.1%, which was an acceleration over the 2.2% seen in the previous quarter. In addition, growth in fixed investment accelerated from 11.4% in Q4 to 16.4% in Q1. Conversely, government spending increased 9.0%, which was slightly down from the 10.0% rise seen in the previous quarter.
On the external side of the economy, exports grew a weak 0.6% in Q1, which marked a notable deceleration over the 9.4% increase observed in the previous quarter. Conversely, growth in imports accelerated from 5.8% in Q4 to 10.4% in the first quarter, marking the fastest increase since Q4 2010. As a result, the net contribution of the external sector to overall economic growth dropped from plus 0.9 percentage points in Q4 to minus 4.1 percentage points in the first quarter.
Author: Dirina Mançellari, Senior Economist