Dominican Republic GDP

Dominican Republic

Dominican Republic: Economy slows in Q3 on decelerating domestic demand

January 1, 2015

According to more detailed data from the Central Bank, the economy grew 6.3% in the third quarter over the same period the previous year. The result was a slowdown over the 7.5% increase observed in the second quarter.

Q3’s expansion came on the back of a deceleration of domestic demand, while the external sector improved compared to the previous period. Private consumption grew 2.5% in Q3, which was down from the 4.3% rise seen in Q2. In addition, fixed investment grew 5.6% (Q2: +11.0% year-on-year). On the other hand, government consumption accelerated from a 6.8% growth in the second quarter to a 14.0% increase in the third.

On the external side of the economy, exports accelerated from a 4.0% rise in Q2 to a 6.2% increase in Q3. Conversely, imports grew 3.4%, which was down from the 5.8% increase seen in Q2. As a result, the external sector’s net contribution to growth swung from minus 0.7 percentage points in Q2 to plus 0.9 percentage points in Q3.

According to a preliminary estimate from the Central Bank, the economy expanded 7.1% in 2014 over the previous year, which marked a significant improvement over the 4.6% rise seen in 2013. The figure was driven by expansions in all of the economic sectors with construction and mining recording the biggest expansions over the previous year.

The government’s 2015 budget projects that the economy will grow 5.0% in 2015. FocusEconomics Consensus Forecast see the economy growing 4.4% in 2015, which is up 0.3 percentage points from last month’s forecast. For 2016, panelists expect economic growth at 4.5%.

Author:, Senior Economist

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Dominican Republic GDP Chart

Dominican Republic GDP Q3 2014 0

Note: Year-on-year changes of GDP in %.
Source: Dominican Republic Central Bank and FocusEconomics Consensus Forecast.

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