The Central Bank of the Dominican Republic (BCRD) has announced preliminary economic data for October 2024, revealing a robust 5.4% year-on-year expansion. This growth trajectory has propelled the country’s economy to an average of 5.1% expansion from January to October compared to the same period in 2023.
The Central Bank is bullish on the outlook for the Dominican Republic. It reports the country is well-positioned to maintain a robust growth trajectory, supported by strong macroeconomic fundamentals and the resilience of its productive sectors.
The Central Bank attributed this robust performance to a stable price environment, with annual inflation remaining well within the target range of 4.0% ± 1.0% at 3.16% in October. These outcomes are a testament to the effectiveness of both monetary and fiscal policies implemented to mitigate the risks posed by the global economic landscape, including geopolitical tensions in the Middle East and Eastern Europe.
The sustained growth of the United States economy, with a 2.8% annualized quarterly growth rate in the third quarter of 2024, has had a positive spillover effect on the Dominican Republic. Given the country’s deep economic ties with the US, particularly in remittances, tourism, net exports, and foreign direct investment, the robust US performance has provided a significant tailwind.
The Central Bank says that the Dominican Republic’s economic expansion has been driven by a broad-based recovery, with the services sector leading the way. Activities such as financial intermediation, hotels, restaurants, transportation, real estate, and communications have all contributed significantly to the overall growth. Additionally, local manufacturing and the free zone manufacturing sector have also shown robust performance.
The construction sector has also experienced a notable upswing, with a 6.8% year-on-year growth in October. This expansion is attributed to increased sales of construction materials, particularly cement.
The financial intermediation sector has exhibited strong growth, fueled by a 12.5% expansion in credit granted to the private sector in domestic currency. While mining experienced a contraction for the first ten months of the year, recent months have shown a positive trend, driven by increased gold production.
The tourism sector has continued to be a major driver of economic growth, with the country expecting to welcome 11.5 million visitors by the end of 2024.
Read more in Spanish:
Central Bank
26 November 2024