Consumption in Dominican Republic
Dominican Republic - Consumption
Economy plunges in Q2 overall, although contraction eases in May and June
The economy contracted 16.8% in the second quarter according to monthly economic activity (IMAE) data as domestic lockdown measures and the border closure crushed activity (Q1: +0.2% year-on-year). While a breakdown by sector has yet to be made available, Q2’s reading was likely driven by steep falls in the hotels, bars and restaurants; construction; and mining sectors. More positively, economic activity started to recover in May and June, after reaching a low point in April, as containment measures were lifted.
Turning to the second half of the year, despite the reopening of international borders from 1 July, the rebound in the economy could stall after the government reimposed the state of emergency until 10 August due to surging new Covid-19 cases. Health concerns will also temper tourist arrivals.
Regarding the medium-term outlook, Carlos de Sousa, economist at Oxford Economics, comments: “We expect a sharp rebound in 2021, supported by expansionary fiscal and monetary policies, but the economy will remain below its pre-crisis trend as the tourism sector is unlikely to recover its 2019 level until 2023.”
The panel expects the economy to contract 4.2% in 2020, which is down 0.7 percentage points from last month’s estimate, and to expand 5.6% in 2021.
Dominican Republic - Consumption Data
|Consumption (annual variation in %)||6.5||5.5||3.9||5.2||4.8|
5 years of economic forecasts for more than 30 economic indicators.
Dominican Republic Consumption Chart
Source: Dominican Republic Central Bank and FocusEconomics calculations
Dominican Republic Facts
|Exchange Rate||52.96||0.80 %||Jan 01|
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December 1, 2022
Economic activity increased 3.8% compared to the same month of the previous year in October, which was a deterioration from September’s annual 4.8% increase.
November 30, 2022
At its 30 November meeting, the Central Bank of the Dominican Republic (BCRD) opted to keep the policy rate unchanged at 8.50%, halting its monetary policy tightening cycle.
November 3, 2022
Inflation came in at 8.2% in October, down from September’s 8.6%.
October 31, 2022
At its 31 October meeting, the Central Bank of the Dominican Republic (BCRD) delivered another 25 basis point hike, raising its policy rate to 8.50%.
October 25, 2022
Economic activity increased 4.8% compared to the same month of the previous year in September, which was a deterioration from August's annual 5.4% increase. Consequently, annual average economic activity growth moderated to 6.8% in September (August: +7.3%), which marked an over one-year low. Lastly, on a seasonally-adjusted month-on-month basis, activity slid 0.2% in September, which was a deterioration from the prior month’s 1.3% expansion.