Dominican economy grows 5.5% between January-July 2022

Central Bank projects that the Dominican economy could grow by the end of the year by more than 5%.

The Central Bank of the Dominican Republic informed that the Dominican economy registered an average growth of 5.5% in January-July of this year.

In a press release, it informed that the Monthly Economic Activity Indicator (IMAE) registered an accumulated average variation of 5.5 % in said period, compared to the same of the previous year, after having experienced an inter-annual increase of 4.7 % in July, similar to the growth rates of April and May of 4.7 and 4.8 %, respectively.

According to the agency, the accumulated expansion so far allows maintaining the forecast that the economy would be ending the year with an increase of the Gross Domestic Product (GDP) around its potential, in line with the projections of the International Monetary Fund (IMF) and the Economic Commission for Latin America and the Caribbean (ECLAC). The latter organization placed it at 5.3%, among the best performances in the region and practically double the average growth of 2.7% expected for the region.

The BCRD says that this projection would be contributed to by the continuation of private investment initiatives associated with Foreign Direct Investment (FDI) flows that are expected to reach an amount exceeding US$3.5 billion this year, as well as the execution of public investment projects announced by President Luis Abinader and contemplated in the budget.

“While it is true that credit still shows a dynamic behavior, interest rates have been increasing in response to the measures of gradual and orderly withdrawal of monetary stimulus by the Central Bank of the Dominican Republic to combat inflation and avoid overheating of the economy, as most central banks worldwide have done,” says the financial institution’s report.

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