2024News

Growth sneaks above 6%, June inflation was 3.46%

The Central Bank reports the economy continues to demonstrate significant growth with a 6.2% increase in June 2024 compared to the same month in the previous year. This growth has resulted in an average annual expansion of 5.1% for the first half of 2024, positioning the country as the fastest-growing economy in Latin America during this period.

The growth occurred within a stable price environment, attributed to effective monetary and fiscal policies that helped navigate global economic risks, including high international interest rates and geopolitical uncertainties.

The Ministry of Economy announced that the inflation rate for June was 3.46% year over year. This inflation level is within the parameters set by the Central Bank (4%+/-1%).

According to the latest economic statistics, the underlying inflation rate was 3.98%, down 1.35% from a year ago. Major players in the numbers for June were food and non-alcoholic beverages, transportation, and goods and services.

The Dominican peso continues to devaluate against the United States dollar and was quoted at RD$58.99 to the dollar, a 7% depreciation over the past year.

The economic activity reflects the resilience of the national production sector, despite challenges such as volatility in commodity prices due to international conflicts.
Sector contributions in June 2024 were:
• Construction: 4.9%
• Free zone manufacturing: 5.9%
• Service sector: 5.5%, with notable growth in real estate, transportation, and hospitality, supported by the arrival of over 4.4 million tourists in the first half of the year.
• Agricultural growth: The agricultural sector saw a 4.2% increase, driven by higher production of various crops and livestock, aided by government support.

The Central Bank also reports significant credit expansion. There was a 16.5% annual increase in credit to the private sector in national currency, contributing positively to economic performance.

Read more in Spanish:
Banco Central
Diario Libre

29 July 2024