Santo Domingo, RD.
The Central Bank of the Dominican Republic (BCRD) reported that the latest available figures from the monthly indicator of economic activity (Lower) show year-on-year growth of 12.1% for July 2021, And in cumulative terms for the first seven months of this year, the cumulative average variation is 13.1%.
In a statement announcing the preliminary results of the behavior of economic activity in July this year 2021, the monetary institution explains that “as stated in previous publications related to the behavior of the economy, to isolate the statistical effect on the basis of comparison of the previous year, compares the IMAE of January-July 2021 with respect to the same period of 2019 (pre-pandemic), results in an increase of 3.5%.
good performance
The BCRD notes that the behavior in the first seven months of the year has allowed an upward revision of GDP projections, Which point out that 2021 would close at a rate of double-digit year-on-year expansion, ie 10% or more, placing the Dominican Republic as one of the few countries in Latin America that would be able to completely reverse the contraction of the ‘economic activity of 2020 in just one year.
GDP in RD $ 91,561.3 MM
Another relevant aspect is that nominal GDP would stand at US $ 91,561.3 million at the end of 2021, according to recently updated figures from the macroeconomic framework agreed between the Ministry of Economy, Planning and Development, the Ministry of Finance and the Central Bank. This result would more than offset the decline experienced in 2020 in just one year and exceed by $ 2,655.2 million its pre-pandemic level of 2019.
It indicates that the improvement would contribute to a reduction in the debt level indicator as a proportion to GDP. Additionally, The Dominican Republic will be one of the first countries to recover its per capita income in the region, as noted by the International Monetary Fund (IMF).
Invigorating sectors
By analyzing in detail the behavior of economic growth in January-July 2021, it is verified that the activities that recorded the most significant year-on-year expansions with respect to 2020 were: construction (36.5%), free zone manufacturing (28.6%), hotels, bars and restaurants (22.0%), transport and storage (14.2%), local manufacturing (12.9%), trade (11.1%) and exploitation of mines and quarries (9.8%), among others.
With regard to prices, he states that there has been a moderation in oil and some agricultural goods and that these lower external pressures have been reflected in a moderation in year-on-year inflation, from 10.48% in May to 7.88% in July.
growth
The monetary institution says the economy continues to surpass pre-pandemic levels.
last July
In July 2021 the IMAE recorded a year-on-year growth of 12.1%.
variation
Taking as a reference the pre-pandemic period of January-July 2019, the accumulated average variation would be 3.5% in the first seven months of 2021. The double-year year-on-year expansion, 10% or more.