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
| 2015 | 2016 | 2017 | 2018 | 2019 | |
|---|---|---|---|---|---|
| Consumption (annual variation in %) | 6.5 | 5.5 | 3.9 | 5.2 | 4.8 |
Dominican Republic Consumption Chart
Source: Dominican Republic Central Bank and FocusEconomics calculations
Dominican Republic Facts
| Value | Change | Date | |
|---|---|---|---|
| Exchange Rate | 52.96 | 0.80 % | Jan 01 |
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Economic News
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Dominican Republic: Economic activity growth recedes to 20-month low in October
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.
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Dominican Republic: Central Bank pauses tightening cycle in November
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.
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Dominican Republic: Inflation drops to lowest level since November 2021 in October
November 3, 2022
Inflation came in at 8.2% in October, down from September’s 8.6%.
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Dominican Republic: Central Bank tightens policy further in October
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%.
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Dominican Republic: Economic activity growth eases in September
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.
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