The Hotels, Bars, and Restaurants sector registered the highest growth, at 32.9% in the first seven months of this year. Agriculture grew by 2.9%, Local Manufacturing by 4.3%, Free Trade Zone Manufacturing by 7.2%, Construction by 1.9%, Services by 7.6%, Energy and Water by 6.2%, Commerce by 6.3%, Transportation and Storage by 7.3%, Communications by 5.4%, and Financial Services by 5.8%.
SANTO DOMINGO - The construction sector registered only 1.9% growth in the first half of this year, according to the Monthly Indicator of Economic Activity (IMAE) of the Central Bank of the Dominican Republic (BCRD).
According to the report, the IMAE shows an average cumulative variation of 5.5%, compared to the same period of the previous year.
According to the report on preliminary results of economic growth as of July 2022, this behavior occurs after the economy experienced a year-on-year increase of 4.7% in July, similar to the growth rates of April and May of 4.7% and 4.8%, respectively.
The Hotels, Bars, and Restaurants sector registered the highest growth, at 32.9% in the first seven months of this year. Agriculture grew by 2.9%, Local Manufacturing by 4.3%, Free Trade Zone Manufacturing by 7.2%, Construction by 1.9%, Services by 7.6%, Energy and Water by 6.2%, Commerce by 6.3%, Transportation and Storage by 7.3%, Communications by 5.4%, and Financial Services by 5.8%.
Real Estate and Rental Activities grew by 4.2%, Education by 4.5%, Health by 11.4%, and Other Service Activities by 9.9%. In contrast, Mining and Quarrying fell by -10.9%.
Furthermore, the accumulated expansion maintains the forecast that the economy would end the year with an increase in 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).
ECLAC says it placed growth at 5.3%, among the best performances in the region and practically double the average growth of 2.7% expected for the region.
This projection would be supported by the continuation of private investment initiatives associated with Foreign Direct Investment (FDI) flows, which 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 included in the budget.
These favorable prospects reflect the resilience of the Dominican economy in the context of an adverse international environment characterized by a slowdown in global growth prospects, says the Central Bank of the Dominican Republic (BCRD)
Services account for 60%
of the economy. Service activities constitute approximately 60% of the size of the economy and registered a year-on-year variation of 7.6% during the period in question. Among these, hotels, bars, and restaurants stand out (32.9%), equivalent to one-third of the economic expansion recorded this year; followed by health (11.4%), transportation (7.3%), commerce (6.3%), and financial services (5.8%), among others.
The dynamism of this sector was driven by external demand for the tourist services offered by the country, reflected in the arrival of 4,282,207 non-resident passengers during the first seven months of the year, equivalent to a year-on-year growth of 74.0%, as well as an average room occupancy rate of over 70%.
Also noteworthy is the influx of 735,000 tourists in July, a record high that exceeds by 30.3% the arrival of passengers in the same period of the previous year, according to official information provided by the Ministry of Tourism.
Credit to the private sector in local currency registered a growth of 13.9% year-on-year at the close of July 2022.
