Dominican Republic: Economic activity records slowest growth since February in September but remains robust
Economic activity expanded 10.6% in year-on-year terms in September, which was a deterioration from August’s 11.7% increase. September’s result marked the worst reading since February, but still means that the Caribbean country is set for one of the highest growth figures in the region in 2021 and should exceed pre-pandemic output. In Q3 as a whole, the economy grew 11.4%.
Looking at the breakdown for Q3, the agricultural sector grew 1.2% (Q2: +3.5%), the mining industry shrank by 1.2% (Q2: +19.9%), local manufacturing grew by 6.3% (Q2: +19.9%), the free zone manufacturing sector grew by 11.7% (Q2: +57.4%), the construction sector grew by 9.9% (Q2: +68.3%), and the services sector grew by 12.6% (Q2: +17.3%).
Meanwhile, annual average economic activity growth rose to 8.4% in September (August: +7.0%). This signals an improving trend in the sector.
While year-on-year growth readings will keep falling ahead on a weaker base effect, underlying momentum should be strong in the remainder of H2 as the vaccination rollout advances at home and abroad, tourist arrivals recover and as U.S. stimulus measures boost remittances and demand for the Dominican Republic’s exports.