Dominican Republic: Economic activity growth cools in December
Latest reading: Economic activity expanded 3.1% year on year in December, down from November’s 3.9% rise. Looking at preliminary data, weaker momentum in the construction, manufacturing and mining sectors chiefly drove the moderation. Meanwhile, the agricultural and services sectors continued growing at a healthy pace.
The trend pointed down, with the annual average growth of economic activity coming in at 5.0%, down from November’s 5.1%.
Panelist insight: EIU analysts said:
“We expect GDP growth to decelerate slightly in 2025, as a weaker US economy weighs on tourism and inflows of workers’ remittances. Tourist arrivals and receipts will continue to grow but more slowly, coming from a high base in 2024. Government consumption growth will also slow, as it will be coming down from the 2024 election cycle, and the Abinader administration will advance fiscal consolidation. Net export growth will be bolstered by tourism, but weighed on by sluggish US growth and partially closed borders with Haiti (the Dominican Republic’s third-largest export destination), as security concerns will keep bilateral relations strained.”