Tuesday, May 2, 2017

Dominican Republic Current Account Update

In the first quarter of 2017 solid growth of airport arrivals and external remittances provide the Dominican Republic with an encouraging start of the year as far as hard currency inflows are concerned. For an import dependent country like the Dominican Republic monitoring tourism growth and external remittances is important for Current Account dynamics.
Structural CA deficits have been financed oer the years with Capital and Financial Account surpluses, strong FDI investments and favorable external conditions (ZIRP and NIRP policies in the core countries) have improved the USD reserves balance yet growing external debt must be monitored.
We will keep track of remittances and airport arrivals as good coincident indicators for the current account developments this year and we will post here periodic updates on this issue. 

 Strong Growth of total airport arrival: first quarter of the last four years chart

As of March 2017 total airport arrivals are up a solid 4% versus 2016

Total yearly airport arrivals 2004-2016

Dominican Republic: Remittances per month of the year

Dominican Republic:  Cumulative remittances  up a solid 6.3% as of February 2017