The Monthly Indicator of Economic Activity (IMAE) shows a year-on-year growth of 12.1% for July 2021, and in accumulated terms for the first seven months of this year, it registered an average accumulated variation of 13.1%.
SANTO DOMINGO. -The construction sector continues to have the highest indicator of economic growth in the country, in the first seven months of this year, according to the latest available figures from the Monthly Indicator of Economic Activity (IMAE, of the Central Bank).
With 36.5% growth, construction continues to lead the economic sectors in the January-July 2021 period, compared to the same period last year. It is followed by Free Trade Zone Manufacturing (28.6%), Hotels, Bars and Restaurants (22.0%), Transportation and Storage (14.2%), Local Manufacturing (12.9%), Trade (11.1%), and Mining and Quarrying (9.8%), among others.
The increase in construction is mainly associated with the execution of investment projects of public-private partnerships for a greater supply of medium and low cost housing units and tourist accommodation, as well as the continuation of the rehabilitation and maintenance works of the road infrastructure.
This dynamism is evident in higher sales volumes of key construction inputs, such as cement and metal structures, to meet the demand generated by these projects. Furthermore, it is worth noting that this sector has been one of the main beneficiaries of the liquidity facilities made available by the Monetary Board to productive sectors and households in the context of the COVID-19 pandemic.
The retail sector recorded an 11.1% year-on-year increase in its real value added during the first seven months of 2021, consistent with the growth in local production of agricultural and manufactured goods and the volume of tradable imports. Similarly, during this period, nominal sales at the country's main retail chains and department stores increased by 16.2%.
Manufacturing activity continues to demonstrate remarkable performance in terms of added value. In particular, Free Trade Zones have made a significant contribution to the reactivation of economic activity, registering a year-on-year increase of 28.6% during January-July 2021, reflected in export levels, which totaled US$4,079.6 million during that period
Likewise, local manufacturing shows an average variation of 12.9%, mainly explained by the manufacture of petroleum refining products, chemical substances and products, beverage and tobacco products, as well as direct inputs for construction.
Regarding the Hotels, Bars, and Restaurants sector, which registered a year-on-year expansion of 22.0% in the first seven months of 2021 in terms of real value added, it has responded very positively to the broad set of measures implemented by President Luis Abinader and the Tourism Cabinet, in close collaboration with the private sector. Promotional plans for the Dominican Republic as a safe and attractive tourist destination for recreation and investment have also contributed to this growth.
This favorable performance recorded by the sector is based on the sustained increase in the arrival of non-resident passengers to the country, accumulating a total of 2,461,630 tourists in July, for a year-on-year growth of 61.0%, equivalent to 932,376 additional non-resident travelers.
In particular, the number of non-resident visitors received in July 2021 is equivalent to a remarkable 95.4% of the total for July 2019, the latter being a regular period without a pandemic.
