Dominican Republic: Economic activity growth wanes in July
Economic activity rose 4.8% in year-on-year terms in July, which was weaker than June’s 6.2% increase. According to preliminary data, the deceleration stemmed from softer growth in the agricultural, construction and services sectors, coupled with declining mining and quarrying output. On the flipside, manufacturing activity gathered steam.
On a seasonally adjusted monthly basis, economic activity rose at a more moderate pace of 0.2% in July (June: +0.6% mom). Meanwhile, annual average economic activity growth rose to 4.4% in July (June: +4.3%), pointing to an improving trend.
Oxford Economics analyst Pierre Delage commented on the outlook:
“Stronger consumption and investment amid the easing cycle started by the central bank last year, and a recovery in exports of goods and strong tourism inflows, will boost demand-side growth this year. However, downside risks persist such as extreme weather events, spillovers from Haiti’s security crisis, and the US economy slowdown.”