Dominican Rep: surprising figures of GDP growht for 2013 (Q4 and Q1-Q4)

DOMINICAN REPUBLIC - In Brief 22 Jan 2014 by Pavel Isa

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The Central Bank just released data of GDP growth for Q4 2013 and for the whole year. The figures are surprising and have been received with disbelief by many analysts. According to the Bank, in Q4 GDP grew at 7.2% compared to Q4 of 2012. As a result, GDP growth for 2013 was 4.1% compared to 2012 as for Q3 the estimated rate was 5.5%. These figures are above regional average and also above estimated growth by both the Dominican government and international institutions such as the IMF and UN’s ECLAC. At the end of 2012 and in early 2013, the government estimated overall growth for the year at 3%., while IMF estimates set average regional growth at 2.7% while ECLAC set it at 2.6%. Some economists such Ernesto Selman and Miguel Collado from CREES, a conservative think tank, expressed doubts on the official figures as general imports and imports of oil decreased by 7% compared to 2012. “If imports decreased, it was because capital investment reduced as well as production”, Selman expressed. The Central Bank reported that leading activities in 2013 were agriculture (4.4%), mining (151%), construction (7.3%), tourism (6.3%) and finance (10.5%).