Dominican Republic: Revision confirms largest GDP expansion since Q4 2010
December 30, 2013
According to a more complete set of data, GDP grew 5.5% in Q3 2013 over the same period of the previous year, which was well above the 2.8% rise recorded in Q2. The print was in line with the preliminary estimate and marked the strongest result since Q4 2010.
The improvement in Q3 was due to an acceleration in domestic demand. Total consumption expanded a robust 2.9% in Q3 - up from the 0.6% rise tallied in Q2 - as a result of a 3.4% increase in private consumption (Q2: +0.7% year-on-year). On the other hand, public spending contracted 9.7% (Q2: -3.9% yoy). Fixed investment slowed its pace of contraction and declined 8.2% (Q2: -13.1% yoy).
On the external side of the economy, exports rose 4.3% (Q2: +9.7% yoy), while imports dropped 6.8% (Q2: -5.2% yoy). As a result, the external sector's net contribution to overall growth inched down from 4.7 percentage points in Q2 to 4.5 percentage points in Q3.
The government's 2014 budget projects that the economy will grow 4.5% this year. FocusEconomics Consensus Forecast participants are less optimistic than the Central Bank and see the economy growing 3.5% in 2014, which is unchanged from last month's forecast. For 2015, panelists expect economic growth to pick up to 4.0%.