Dominican economic activity grew 2.4% in May, the highest rate so far this year

Santo Domingo.- The Ministry of Economy, Planning, and Development in the Dominican Republic has published the “Macroeconomic Situation Report: Situation Monitoring” for June 2023. According to the report, the Monthly Indicator of Economic Activity (IMAE) showed year-on-year growth of 2.4% in May, higher than the expansions recorded in the previous four months of the year. The accumulated growth of the IMAE for the first five months of 2023 was 1.4%.

The report attributes this positive economic performance to the coordinated implementation of expansionary monetary and fiscal measures, which have contributed to the country’s solid macroeconomic fundamentals.

Regarding growth expectations, the real gross domestic product (GDP) is projected to grow by 4.0% in 2023, and economic agents anticipate a growth rate of around 5.0% for the year 2024, reflecting a positive outlook for the Dominican economy.

In terms of inflation, the report states that it was within the target range established in the monetary program for June, with a year-on-year variation of 4.00%. This rate is the lowest recorded since July 2020. Core inflation, which excludes volatile items, registered an interannual variation of 5.33%.

The report also highlights the groups that contributed to attenuating the variation in the price index for June, particularly in the Housing and Transportation categories, which experienced negative variations and incidences in the overall inflation rate.