The Central Bank of the Dominican Republic (BCRD) reports an economic expansion of 4.3% in May 2024. This brings the accumulated average interannual growth to 4.9% for the first five months of the year.
The BCRD highlights the resilience of the Dominican economy amidst global uncertainties and a domestic electoral cycle. The expansion is attributed to effective monetary policy, the liquidity provision program implemented since mid-2023, and the execution of capital expenditures by the government.
Key highlights:
• Credit expansion: Private sector credit in national currency grew by 20.3% year-on-year in May 2024, reaching RD$290,071.4 million. This was driven by increased lending for consumption, housing, commerce, construction, and manufacturing.
• Tourism: The hotels, bars, and restaurants sector exhibited a 9.2% year-on-year accumulated variation in January-May 2024. This was supported by the arrival of 3,716,262 tourists by air and 1,284,635 cruise passengers during the period.
• Construction: The construction sector experienced a 4.4% year-on-year growth in January-May 2024. The sector is expected to further improve in the coming months as uncertainties surrounding reforms dissipate.
• Manufacturing: Local manufacturing registered an average year-on-year increase of 2.7% during the first five months of 2024, mainly driven by the performance of other food products and the manufacture of common metals. Free zone manufacturing expanded by 5.8% year-on-year, supported by exports of US$3,469.0 million in January-May 2024.
• Agriculture: Farm activity showed a 4.0% year-on-year growth in January-May of this year, with increases in the production of rice, bananas, avocados, chicken, eggs, and other products.
• Mining: The only sector to register a negative performance was mining, with a 16.5% year-on-year decline. This was primarily due to the temporary suspension of operations by the local ferronickel mining company since December 2023 and the slowdown in gold extraction due to the required facility readjustment plan for the continuity of mining activity in the country’s main deposit in Sanchez Ramírez province.
The Central Bank says that overall, the Dominican economy continues to demonstrate strong performance, driven by various sectors, particularly tourism, construction, and manufacturing. The BCRD remains committed to maintaining price stability and supporting sustainable economic growth.
Read more in Spanish:
Central Bank
27 June 2024