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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September 9, 2021
Consumer prices rose 0.80% in August over the previous month, accelerating from the 0.54% increase logged in July.
September 2, 2021
Economic activity rose 12.1% year-on-year in July (June: +12.7% yoy).
August 31, 2021
At its end-August meeting, the Central Bank (BCRD) decided to keep the policy rate at 3.00%.
August 8, 2021
Consumer prices rose 0.54% in July over the previous month, decelerating from the 0.63% increase logged in June. Inflation decreased from 9.3% in June to 7.9% in July, but remained above the Central Bank’s target range of 3.0%–5.0% for the ninth straight month.
July 30, 2021
At its end-July meeting, the Central Bank (BCRD) decided to keep the policy rate at 3.00%.