Dominican Republic: Revised data confirm acceleration in Q2
September 30, 2013
According to a more complete set of data, GDP grew 2.8% in the second quarter over the same period last year. The figure was well above the 0.3% rise recorded in the first quarter and was in line with the preliminary estimate.
The improvement in the second quarter was due to an acceleration in exports and a softer contraction in domestic demand. Total consumption swung from a 2.6% drop in Q1 to a 0.6% rise in Q2, as both private consumption and government spending rebounded compared to the previous period. On the other hand, fixed investment contracted at the fastest rate since Q3 2009, falling 13.1% (Q1: -3.8% year-on-year).
On the external side of the economy, exports rose 9.7% (Q1: +6.6%yoy), while imports dropped 5.2% (Q1: -2.6% yoy). As a result, the external sector's net contribution to overall growth rose from 3.3 percentage points in the first quarter to 4.7 percentage points in the second.
The Central Bank sees GDP expanding 3.0% in 2013. FocusEconomics Consensus Forecast participants are more optimistic than the Central Bank and see the economy growing 3.9% in 2013, which is unchanged from last month's forecast. For 2014, panelists expect economic growth to pick up to 4.8%.