2020News

Health crisis affects exports

The latest data on the performance of Dominican trade during the Covid-19 health crisis show a major drop, according to the Foreign Commerce Panorama # 8, published by the Dominican International Commerce Observatory (ODCI). According to the entity, between January and March 2020, exports averaged US$837 million per month. For May and June, the average had dropped US$601 million, a 28% reduction. This reduction was observed in national products as well as exports from Industrial Free Trade Zones.

The document also shows that imports are off, too, going from US$1.56 billion between January and March, to US$1.157 in April and May, a decline of 26%. Imports of consumer goods fell by 25%, raw materials fell by 21% and capital goods fell by 36%. Oil imports were down by 43% due to the partial lockdown, and the reduction in international prices.

On the positive side, the trade deficit is down, from US$723 million between January to March, to US$555 million in April and May. However, the outlook for the rest of the year is not very rosy. The Observatory is projecting a US$1.4 billion reduction of exports compared to 2019, and a US$2.4 billion decline in imports.

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OCDI

26 July 2020