Dominican Republic: Economy decelerates slightly in Q4
April 16, 2015
According to more detailed data from the Central Bank, the economy expanded 6.6% in the last quarter of 2014, thus marking a slight deceleration over the 6.8% expansion observed in the previous quarter. For the full year 2014, GDP expanded an impressive 7.3%, which is up from the revised 4.8% increase tallied in 2013 (previously reported: +4.6%). The new growth figures reflect the recent revision of the base year and composition of GDP.
In Q4, private consumption grew 2.2% over the same quarter last year, which was a slowdown over the 2.6% increase seen in the previous quarter. In addition, growth in government consumption decreased from 14.0% in Q3 to 10.0% in Q4. Conversely, fixed investment performed better and grew 11.4% in Q4, which was up from the 7.3% increase recorded in the previous quarter.
On the external side of the economy, exports accelerated and grew 9.4%, which was an improvement over the 6.2% increase seen in Q3. In addition, growth in imports increased from 3.4% in Q3 to 5.8% in Q4. The net contribution of the external sector to overall economic growth remained unchanged at the previous quarter’s 0.9 percentage points.
Author: Dirina Mançellari, Senior Economist