Dominican Republic's economy grows but faces structural challenges

The Dominican Republic recorded a 4.5% GDP expansion in the first half of 2024, driven largely by construction, which contributed about 30% of June's growth and posted a 6.7% increase for the semester, spurred by a 22.6% rise in credit. Haitian migrant workers account for 68.3% of the construction labor force, limiting the sector's impact on local wages and employment. Mining, boosted by higher gold and silver prices, added 11.3% growth for the semester and 18.1% in June, but creates few jobs, employing fewer than 8,000 people.

Meanwhile, foreign exchange inflows from direct investment, remittances, tourism and exports reached US$26.5 billion between January and June, supporting the peso’s 8% appreciation and raising international reserves to US$15.8 billion—about 11% of GDP and enough for six months of imports. Inflation eased to 5.67% in June, with the Central Bank keeping the policy rate at 5.25%.

Despite these gains, sectors that generate most jobs—commerce, manufacturing, free‑zone activities and agriculture—showed modest growth, raising concerns about broader prosperity for the Dominican middle class.