Macroeconomic Forecast Dominican Republic

March 2007 | Macroeconomic Forecasts

BMI View: Last year's stellar growth rate fuelled import demand and helped push the current account deficit further into the red. While final balance of payments figures for 2006 have yet to be published, our projection of a current account deficit equivalent to 2.5% of GDP is in line with recent government estimates. The merchandise trade deficit likely came in at around 12% of GDP, as robust consumption and high international oil prices fuelled imports, while conversely, the maquila export sector (especially textiles) lost further ground to East Asian competitors. Going forward, we see the current account deficit deteriorating further in 2007, reaching 2.7% of GDP.

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