Growth in The Dominican Republic Will Slow Towards Historic Trend in 2022

• Fitch Solutions forecast that growth in the Dominican Republic will slow to 4.8% in 2022, from an estimated 10.8% in 2021, as weaker external demand and tighter monetary conditions constrain economic activity. 
• Nevertheless, the market will remain a regional outperformer, averaging 4.6% annual growth from 2023-2026, as tourism rebounds further and falling unemployment supports consumption. 
• However, the global spread of the Omicron variant of COVID-19 presents downside risks to Fitch’s growth outlook, particularly if travelers in the US and other developed markets are more reluctant to travel to the Dominican Republic. 
• The DR’s economy has rebounded at a faster pace than other Caribbean economies in recent quarters as swift COVID-19 vaccine roll-out, recovering labour market, and robust external demand has bolstered headline growth.

 (Source: Fitch Solutions)