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: Central Bank continues tightening cycle in July
July 31, 2022
At its 31 July meeting, the Central Bank of the Dominican Republic (BCRD) raised its policy rate by 50 basis points to 7.75%.
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Dominican Republic: Central Bank continues tightening cycle in June
June 30, 2022
At its 30 June meeting, the Central Bank of the Dominican Republic (BCRD) raised its policy rate by 75 basis points to 7.25%.
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Dominican Republic: Inflation moderates in May
June 10, 2022
Consumer prices increased 0.49% from the previous month in May, easing from April’s 0.96% rise.
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Dominican Republic: Inflation moderates in May
June 9, 2022
Consumer prices increased 0.49% from the previous month in May, picking up from April’s 0.96% rise.
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Dominican Republic: Economic activity growth slows in April
June 3, 2022
Economic activity increased 4.7% in year-on-year terms in April, which was below March’s 6.4% increase.
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