The dominican economy record a cumulative growth from 5.0% in January-November 2022, reported today the central bank of the country, an institution that also observes a moderation of growth rate during recent months, since in the first three quarters of the year there were increases of 6.1%, 5.1% and 5.0%, respectively.
“The slowdown in domestic demandmainly from the investment component, due to high costs of the raw Materials Y Construction materialsas well as the operation of the transmission mechanism of the monetary policy oriented towards the reduction of inflationary pressures”, said the bank in a statement.
In this sense, the results of its forecasting system suggest that the expansion of gross domestic product (real GDP) would be around 5.0% by the end of 2022.
Regarding nominal GDP, it is projected to reach around 113,000 million dollarswhich would contribute to the debt public sector consolidated end the year below 60% as a proportion of GDP.
With this level of nominal output, the bank estimated that the GDP per capita goes from 8,971.9 dollars in 2021 to a value close to $10,600 in 2022.
The central bank highlighted the recent improvement on the rate risk sovereign credit rating from ‘BB-‘ to ‘BB’ by Standard & Poor’s Global Ratings, “reflecting the climate of stability in the country”.
Services sector: the pointer
When analyzing the sectoral behavior of January-November 2022, the bank highlighted the incidence of service activities Taken together, they make up approximately the 60.0% of the total economy and present an interannual variation of 6.6% in the referred period.
Among the sectors that compose it, he highlighted the performance of hotels, bars and restaurants (25.2%), health (11.0%), other service activities (8.3%), public administration (7.8%), transport and storage (6.7%), financial services (5.6%) and commerce (5.5%).
“Activity hotels, bars and restaurantsin terms of real value added, showed a relative interannual variation of 25.2%being the one with the greatest contribution to the total expansion of the monthly indicator of economic activity (IMAE) for January-November of 5.0%”, he said.
On agriculturalindicated that he registered a 5.0% growthfree zone activity grew 5.9%, local manufacturing 2.6% and construction 0.6%.
The variation of 0.6% of construction sector reflects a moderation in your pace of growth associated with the combination of substantial rise recorded in the prices of inputs, such as cement, rods and paintsand a readjustment of construction schedules due to the effect of higher interest rates, he said.
He observed that the public capital spending minor to budget and a slower running than expected has also been reflected in the aggregate performance of the activity.
According to preliminary data at the end of November, the capital expenditure represented a 1.8% as a proportion of GDP, 0.8 percentage points below 2.6% of GDP contemplated in the supplementary budget for the year.
Regarding the variation of -8.3% in mining during the first 11 months of 2022, the bank noted that this continues to reflect a lower production of gold and silverassociated with the decrease in the level of mineral concentration in the extractions carried out.
In this regard, it recalls that a project to extend the useful life of the mine of Old Town until 2044.
“The accumulated average growth of 5.0% in January-November 2022 turns out to be favorable, despite the slowdown in construction activity and the contraction exhibited by the mining sector in the aforementioned eleven months. Indeed, said behavior together with the recent evolution evidenced by the main macroeconomic indicators, reflect resilience of the dominican economy in the context of the challenging international situation,” the bank concluded.