Tuesday, June 20, 2017

Dominican Republic economy update

Taking a closer look at the latest string of economic data released by the BCRD we can say that the Dominican Central Bank is doing a good job so far balancing inflation control and economic growth:

1-Inflation looks under control stabilizing just above 3% in May 2017

2-The index of construction prices looks stable:

3-Manifacturing activity is still running at a 6% y/y growth rate in May 2017

Looking at the main monetary aggregates' dynamic with both M1 and M2 frowth rate falling rapidly we do not expect price pressure in the coming months and we expect economic growth to continue thanks to a favourable loans creation dynamic.

Loans to the private sector still growing at an healthy pace 

The Jan 27 5.95% USD bond of the Dominican Republic is well bid trading close to a 5% yield level signaling good market confidence and otimism in the Dominican Republic.