Dominican Republic: Economy grows at fastest pace in more than two years.
October 25, 2010
According to preliminary Central Bank estimates for the third quarter, gross domestic product (GDP) increased 7.8% over the same period last year. The reading came in above the revised 7.4% rise (previously reported: +7.5% year-on-year), marking the fourth consecutive quarter with GDP growth above 7.0% and the strongest quarterly result since June 2008. At the sector level, the quarterly reading reflected a strong rise in services, which jumped 8.5% year-on-year, up from the 7.5% yoy rise recorded in the previous quarter. Meanwhile, industry rose 4.9% over the same period last year (Q2: +7.9% yoy) and finally, agriculture expanded 1.3% (Q2: +6.1% yoy). More complete data for economic growth in the third quarter will be published on 30 December. Meanwhile, on 22 October, the International Monetary Fund (IMF) completed the second and third review of the Stand-By Arrangement (SBA) signed by the country and the IMF in November 2009. As the country met all the requirements set for the second and third review, the IMF allowed the immediate disbursement of a USD 249 million tranche of the total USD 1.72 billion loan agreed to under the SBA. Owing to the strong performance of the economy, the Central Bank raised its growth forecast for this year from the previously expected 6.0% to the current 7.0%.
Author: Armando Ciccarelli, Head of Data Solutions