Inflation and Headwinds In US To Depress 2022, 2023 Growth Outlook For Dominican Republic

• The Dominican Republic is expected to grow by 4.6% in 2022 and 4.8% in 2023, from 12.3% in 2021, on the back of a stronger than expected Q1 2022 (6.1% y-o-y) owing to the recovery of the tourism sector.
• The latter also supported a 32.2% expansion in exports, while fixed investments grew 8.4% benefitting from increased capital inflows into the tourism sector.
• However, it is expected that elevated inflation and a possible US recession will weigh on private consumption and weaker US growth could dampen investment inflows and external tourism demand. 

(Source: Fitch Solutions)