Dominican Republic Economy Grows 5.1% in March, Highest in 11 Months Amid Global Uncertainty

• The Dominican Republic’s economy expanded 5.1% year-over-year in March 2026, marking its strongest monthly growth in 11 months, according to preliminary data from the central bank, signalling a notable pickup in economic momentum.
• Growth was driven primarily by construction, free-zone manufacturing, and financial intermediation, including insurance and related activities, pointing to broad-based expansion across both real and services sectors.
• For Q1 2026, economic activity, as measured by the Monthly Economic Activity Indicator (IMAE), grew 4.1%. This reflects a gradual recovery, with growth strengthening from 3.5% in January to 3.9% in February and accelerating further in March.
• Despite the improving domestic performance, the external environment remains highly uncertain, with Middle East tensions contributing to oil price volatility and disruptions to maritime trade through the Strait of Hormuz, prompting downward revisions to global growth forecasts by the International Monetary Fund.
• The central bank reiterated its commitment to maintaining price stability and closely monitoring global developments, highlighting the risk that external shocks, particularly energy price increases, could spill over into domestic inflation and economic conditions.
• Following a slowdown in 2025, when growth eased to 2.1%, the latest data positions the Dominican Republic among the fastest-growing economies in the Caribbean, although the sustainability of this recovery will depend on external conditions.
• The rebound reflects strong domestic demand and sectoral recovery. But with the economy still highly exposed to external shocks, particularly oil prices and global trade disruptions, growth momentum, while improving, remains vulnerable in the near term.

(Source: Dominican Today)