Dominican Republic: GDP growth moderates in the first quarter
July 8, 2011
According to a more complete set of Central Bank data, GDP grew 4.3% in the first quarter, which almost halved the 8.3% pace recorded in Q4 2010 and, in fact, marked the slowest quarterly expansion since the third quarter of 2009. That said, the result was affected by a high comparison base, as GDP had expanded a strong 7.5% in the same quarter last year. The Q1 reading reflected slower growth both in the domestic and the external sector. Total consumption decelerated from an 8.2% rise in Q4 to a 4.7% expansion in the first quarter, while fixed investment improved from an 8.9% increase to a 10.0% expansion in Q1. Meanwhile, exports rose 6.3% (Q4 2010: +16.5% year-on-year), while imports increased 8.4% (Q4 2010: +12.0 yoy). As exports decelerated more than imports, the net contribution to growth of the external sector stepped down from minus 0.6 percentage points in the fourth quarter to minus 1.5 percentage points in the first quarter. The Central Bank expects the economy to grow 5.5% in 2011.
Author: Armando Ciccarelli, Head of Data Solutions