Key insights
- BofA cut its Dominican Republic GDP forecast to 3% due to a sluggish recovery and exposure to the oil shock. While the tourism sector is a bright spot, the rest of the economy is lagging. The central bank has limited room to ease monetary policy. This news has a slightly negative impact on US equities as it reflects broader global growth concerns.
Investing.com - Bank of America cut its GDP growth forecast for the Dominican Republic to 3% as the recovery will likely be sluggish this year, the firm said in a research note.
The tourism sector recovery is positive news for growth, according to Bank of America. The rest of the economy is recovering at a slower pace.
The opportunity for reforms is fading, the firm said. The Dominican Republic is highly exposed to the oil shock.
The government has room to support the economy, Bank of America said. The central bank has less room to ease.
Bank of America did not specify the timing of the forecast revision or provide a previous growth estimate for comparison.
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