Dominican Republic: Economy decelerates in Q2
October 8, 2015
According to more detailed data from the Central Bank, the economy expanded 6.2% in the second quarter, thus marking a deceleration over the 6.6% expansion observed in the previous quarter. The figure marked the slowest increase in two years.
In Q2, private consumption grew 4.1%, which was an acceleration over the 3.9% seen in the previous quarter. In addition, growth in fixed investment accelerated from 15.8% in Q1 to 16.5% in Q2. Conversely, government spending increased 8.7%, which was down from the 9.4% rise seen in the previous quarter. On the external side of the economy, exports grew 2.9% in Q2, which marked an acceleration over the weak 0.6% increase observed in the previous quarter. Conversely, growth in imports decelerated from 10.4% in Q1 to 8.7% in the second quarter.
On a sector level, in Q2, growth in agriculture decelerated from 5.4% in Q1 to 1.5% in Q2. Moreover, services grew 4.9% year-on-year, which was down from the 6.3% increase seen in the first quarter. Conversely, industry improved and grew 8.5% in Q2, which was up from the 6.5% increase seen in Q1.
Author: Dirina Mançellari, Senior Economist