[REVISION HISTORY]

Dominican Republic economic growth and inflation

Updated 6 times since CLSTR started tracking revisions of this situation.

What changed

2026-08-22 20:37 UTC → 2026-08-24 16:09 UTC · added ~~removed~~

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, which has diminished household purchasing power. The National Statistics Office (ONE) reports 15,259 homes in immediate supply through its Building Offer Registry, with most stock concentrated in the Metropolitan Region. financing. Adding to these fiscal pressures, the nation’s public debt has reached US$80.4 billion, representing 59.6% of its ~~GDP following 21 years of~~ GDP. Economist Jaime Aristy Escuder has warned that the country may require fiscal ~~deficits.~~ 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.

Versions

Only revisions since CLSTR began indexing content versions appear here. Select a version to see what changed compared to the one before it.