# Dominican Republic economic growth and inflation > Live situation record from CLSTR: https://clstr.news/situations/dominican-republic-economic-growth-and-inflation > Updated: 2026-08-23T15:43:33.000Z. Sources: 11. Developments: 6. The Dominican Republic’s economy showed a 4.5% GDP expansion in the first half of 2024, fueled by a 6.7% increase in the construction sector and an 11.3% growth in mining. While foreign exchange inflows from tourism, remittances, and exports reached US$26.5 billion, supporting an 8% peso appreciation and raising reserves to US$15.8 billion, structural challenges remain. The construction sector relies heavily on Haitian migrant workers, who comprise 68.3% of the labor force, potentially limiting local wage impacts. Furthermore, modest growth in commerce, manufacturing, and agriculture has raised concerns regarding middle-class prosperity. Inflationary pressures continue to pose risks to the financial sector, where negative real interest rates may discourage savings and eroding purchasing power increases credit risk. By August 2026, the rising cost of living for food, housing, and healthcare outpaced wage growth, with annual inflation exceeding the Central Bank's target. These economic pressures are increasingly visible in the real estate market, where rising costs for materials, labor, and transport, alongside land scarcity in urban and tourist zones, are impacting housing affordability. As of late August 2026, the real estate market is seeing a progressive accumulation of available inventory, specifically within middle and middle-high apartment segments. According to the Association of Builders and Housing Promoters (Acoprovi), a slowdown in sales is being driven by the rising cost of mortgage financing. Adding to these fiscal pressures, the nation’s public debt has reached US$80.4 billion, representing 59.6% of its GDP. Economist Jaime Aristy Escuder has warned that the country may require fiscal adjustments to ensure sustainability. He noted that if U.S. interest rates remain high, the Dominican Republic’s risk premium could rise from 167 basis points to between 180 and 200 points, potentially pushing rates to approximately 7% and increasing interest payments for the state. ## Timeline ### 2026-08-23: Dominican Republic may face fiscal adjustments, economist warns Economist Jaime Aristy Escuder warns the Dominican Republic may need fiscal adjustments and spending cuts due to high U.S. interest rates and rising debt financing costs. 2 sources. https://clstr.news/cluster/dominican-republic-may-face-fiscal-adjustments-economist-warns ### 2026-08-21: Dominican Republic public debt reaches US$ 80.4 billion The Dominican Republic's public debt has reached US$ 80.4 billion, or 59.6% of its GDP, raising concerns about long-term economic growth and fiscal capacity despite no immediate crisis predicted. 2 sources. https://clstr.news/cluster/dominican-republic-public-debt-reaches-us-804-billion ### 2026-08-16: Dominican Republic housing market faces rising costs and urban expansion Rising construction costs and land scarcity are impacting housing affordability in the Dominican Republic, while urban expansion continues in areas like Santo Domingo Norte via key infrastructure developments. 2 sources. https://clstr.news/cluster/dominican-republic-housing-market-faces-rising-costs-and-urban-expansion ### 2026-08-07: Inflationary pressures impact Dominican Republic and Guatemala Inflation is driving economic instability in the Dominican Republic and Guatemala, fueled by rising fuel costs and impacting purchasing power, savings, and credit risk. 2 sources. https://clstr.news/cluster/inflationary-pressures-impact-dominican-republic-and-guatemala ### 2026-08-01: Dominican Republic's economy grows but faces structural challenges Dominican Republic posted 4.5% GDP growth in H1 2024, led by construction and mining, while foreign exchange inflows hit $26.5 bn and reserves rose to $15.8 bn; inflation eased to 5.7% and policy rate stayed at 2 sources. https://clstr.news/cluster/dominican-republics-economy-grows-but-faces-structural-challenges ### 2026-07-16: Dominican Republic consumer inflation climbs to 5.67% in June 2026 Dominican CPI jumped to 5.67% YoY in June 2026, above the 4% ± 1% target, driven by transport, food, and services costs. 20 sources. https://clstr.news/cluster/dominican-republic-inflation-hits-57-in-june-surpassing-central-bank-target --- Cite as: Dominican Republic economic growth and inflation. CLSTR, https://clstr.news/situations/dominican-republic-economic-growth-and-inflation