Dominican Republic: GDP expands at slowest pace in almost five years
May 31, 2013
According to preliminary Central Bank estimates for the first quarter, GDP increased a meagre 0.3% over the same period last year. The figure was down from the 3.9% expansion recorded in the previous three-month period and marked the slowest growth rate since the third quarter of 2008.
At the sector level, the weak reading was largely the result of a contraction in the industry sector, which fell 1.2% in annual terms, contrasting the 1.4% rise recorded in the previous quarter. In addition, both agriculture (Q4 2012: +3.4% year-on-year; Q1 2013: +1.2% yoy) and services (Q4: +3.0 yoy; Q1: +1.2% yoy) slowed notably compared to the previous quarter.
The Bank sees GDP expanding 3.0% in 2013. FocusEconomics Consensus Forecast participants are more optimistic than the Central Bank and see the economy growing 3.9% in 2013, which is unchanged from last month's forecast. For 2014, panellists anticipate economic growth to pick up to 4.8%.
Author: Armando Ciccarelli, Head of Data Solutions