Economy grew 4.7% in first half, below potential: Central Bank

Santo Domingo.- During the first half of 2019 the economy grew 4.7%, below its potential, notes the Central Bank in its Open Page report, “International economic outlook and perspectives of the Dominican economy,” which explains that as a result of the recent expansionary monetary policies the year will close at 5%, “in line with its potential.”

In the report, which explains the impact of the uncertainty experienced in the international environment caused by the trade war between the United States and China, the Central Bank notes that according to the Consensus Forecast, the Dominican Republic would continue to lead the regional growth with 5.3% during 2019.

On the economy’s performance Open Page indicates that “in the domestic sphere, the pace of expansion of economic activity has moderated beyond what was expected in recent months, due to the deterioration of conditions at an international level and uncertainty factors of a domestic nature, characteristic of the pre-electoral cycle, which have conditioned the consumption and investment decisions of economic agents.”

In terms of prices, year-on-year inflation stood at 1.40% at the end of July, for the ninth consecutive month below the lower limit of the target of 4% ± 1%.