Dominican Economy Grows 2.1% in 2025

  • The Central Bank of the Dominican Republic (BCRD) reported that the country’s economy recorded accumulated growth of 2.1% in 2025, according to the Monthly Indicator of Economic Activity (IMAE).
  • Economic performance was driven mainly by the agricultural and mining sectors, along with financial intermediation services and activities related to hotels, bars, and restaurants, which showed solid momentum throughout the year.
  • To stimulate economic activity, the Central Bank reduced the Monetary Policy Rate (MPR) by a cumulative 50 basis points during the second half of 2025, bringing monetary conditions closer to a neutral stance in line with inflation expectations. In addition, the BCRD implemented an RD$81Bn liquidity program to support productive sectors.
  • As a result, financial conditions eased, reflected in a decline in the interbank rate from 12.6% in June 2025 to 7.1% in January 2026, as well as lower deposit and lending rates across the banking system, helping to strengthen domestic demand.
  • The 2.1% growth in 2025 is a sharp deceleration from the country’s decade-long average of 5.0%+, signalling a rare "cyclical cooling" caused by a convergence of high international interest rates, tighter global liquidity, and a significant moderation in private investment, specifically in the construction and manufacturing sectors. This slowdown was further exacerbated by supply-side disruptions, including Hurricane Melissa and power grid instabilities, as well as labour shortages in agriculture and construction following tighter migration enforcement measures by the country in response to escalating instability in its neighbour, Haiti.
  • Within 2026, growth is expected to rebound to 4.0–5.0%. This acceleration is underpinned by a shift toward monetary easing, already reflected in a reduction of the policy rate to 5.25%, alongside a doubling of public infrastructure investment to approximately RD$200Bn. Additional support comes from a stronger external sector, driven by record gold prices and resilient foreign direct investment, which reached $5Bn in 2025.

(Source: Dominican Today, NCBCM Research)