Central Bank reports economy grew 13.3% in first half of the year

Central Bank Governor Hector Valdez Albizu reported on key indicators that confirm the Dominican economy is on a firm path to recovery following the economic crisis caused by the Covid-19 pandemic.

The Central Bank reports these indicators for the economy for January-June 2021:

• The Monthly Economic Activity Indicator for June was up 12.7% compared to June 2020. As reference the pre-pandemic period of June 2019, the increase would be 4.7% compared to June 2021.
• The faster-than-expected recovery allows for an upward update of the growth projection for 2021 to a range between 9% and 10%.
• The economic activities with the greatest expansion were: construction (42.2 %), free trade zones (31.7 %), local manufacturing (14.3 %), transportation and storage (13.7 %), mining (11.4 %) and commerce (10.7 %).
• In June, 462,536 tourists entered the country, approximately 80% more than in the same month of 2019. It is projected that the total number of non-resident visitors could be around 4 million by the end of this year.
• Year-over-year inflation is declining and went from 10.48% in May to 9.32% in June.
• The Central Bank’s forecasting system indicates that inflation will continue to decline as it moves down to the target range of 4% ± 1%.
• The foreign exchange influx has allowed for international reserves to reach a record of US$12,611.6 million at the end of June, equivalent to 7.2 months of imports and 14.4% of GDP.
• By the end of June, the Dominican peso showed an appreciation of 2.1%.
• The monetary policy rate has remained at its historical minimum of 3%, after a decline of 150 basis points during 2020.

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Central Bank

30 July 2021