Dominican Republic: Economy decelerates in Q1
July 7, 2014
According to more detailed data from the Central Bank, in the first quarter GDP rose 5.5% over the same period last year. The figure met the preliminary estimate and represented a deceleration compared to the 7.3% expansion recorded in Q4, which had marked the highest growth rate in three years.
Q1’s slowdown came as a result of a deceleration in both the domestic and external sectors. Fixed investment slowed from a 10.7% increase in Q4 to a 2.6% rise in Q1. In addition, private consumption added 2.0% in the first quarter (Q4: +2.4% year-on-year), while government consumption jumped to a 6.0% increase (Q4: +0.1% yoy).
On the external side of the economy, exports accelerated from a 10.2% rise in Q4 to a 13.8% increase in Q1. In addition, imports rose 4.3% in the first quarter, which was up from the flat reading recorded in the previous quarter. As a result, the external sector’s net contribution to overall economic growth fell from 3.3 percentage points in Q4 to 3.1 percentage points in Q1.
Author: Dirina Mançellari, Senior Economist