In a press conference called on Thursday, 26 January 2017, Central Bank Governor Hector Valdez Albizu announced that the preliminary data indicates the Dominican economy grew 6.6% in 2016. This would be the third time the Dominican Republic reports the largest GDP growth in the Latin American region.
The annual rate of inflation in the Dominican Republic came in at 1.70%, which, according to the Central Bank, is the second lowest rate ever recorded in the country in the past 33 years. Valdez also said that the current account deficit closed at -1.5% of GDP, the lowest in this decade.
Other good economic news is that the country’s gross international reserves are at a historic level of US$6,047.4 million, while net international reserves are at US$6,046.7 million, equal to 3.9 months of imports.
The Central Bank also reported that US$24.3 billion in foreign exchange entered the country in 2016. Tourism receipts reached US$6,721.5 million.
The official open unemployment rate is recorded as 7.1%, with almost 150,000 jobs created in 2016.
The Central Bank also reports that 1,072,400 Dominicans moved out of poverty, and 480,692 Dominicans from extreme poverty in the past year.
Central Bank statistics for the year show that the most dynamic sectors of the economy were: Mining (up 26.5%), Financial Intermediation (11%), Farming (9.6%), Construction (8.8%), Other Services (6.8%), Hotels, Bars and Restaurants (6.4%), Commerce (5.9%), Transport and Warehousing (5.3%), Education (5.2%) and Local Manufacturing (4.8%).
Data shows that remittances at US$5.3 billion for the first time surpassed the five billion mark, for a 6.1% annual growth.
Total exports were up 3.5%, including 8.6% growth in non-free zone exports. Imports were up 3.1%, given the reduction of US$216.7 million due to the decline in fuel import prices.
Direct foreign investment was US$2,593.4 million, for an inter-annual increase of 16.7%.
The Central Bank governor highlighted the exchange stability in 2017. He said the peso depreciated 2.5%, ending with a relation as of 30 December 2016 of RD$46.71 to the US$1.00. This was below the forecasted for the 2016 National Budget.
Valdez praised the financial system, saying total assets increased 12% with a bank payment delinquency of only 1.6%.
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Banco Central
Banco Central
27 January 2017
