Dominican Republic Economy Grows 4.6% in July as Construction Leads

The Dominican Republic economic growth rate accelerated across several major sectors in July, according to the Monthly Indicator of Economic Activity (IMAE). Construction posted the strongest expansion among the country’s main productive activities, while financial services, tourism-related businesses and manufacturing also contributed to the broader performance.

Construction grew 8.1% year over year, followed by free-zone manufacturing at 5.5%, local manufacturing at 3.7% and agriculture at 1.9%. Services as a whole increased 4.8%, helping sustain economic activity despite continued pressure on global production costs from geopolitical tensions, oil prices and freight rates.

Construction Remains the Main Growth Driver

The construction sector’s 8.1% expansion was supported by private investment projects and stronger public investment. Higher sales volumes of key construction materials provided an additional indication of increased activity across the sector.

Faster approval processes for new projects and stronger financing also supported construction. Credit directed to the sector rose 18.2% year over year through the end of July, representing more than RD$28 billion in additional financing compared with the same period in 2025.

The combination of investment and credit growth makes construction one of the clearest sources of momentum in the Dominican economy during 2026. Its performance also supports activity among manufacturers and suppliers that provide materials and other inputs to the building industry.

Manufacturing and Free Zones Continue to Expand

Free-zone manufacturing increased 5.5% in July, supported by stronger exports of footwear, electrical products and manufactured tobacco. The sector remains an important part of the Dominican Republic’s export-oriented industrial base.

Local manufacturing grew 3.7%, with gains in metal products, non-metallic mineral products and other manufacturing industries. Agriculture recorded more moderate growth of 1.9%.

Mining was the main major exception, contracting 15.9% during the month. The decline was associated primarily with lower extraction volumes of gold and silver, offsetting part of the expansion recorded in other productive sectors.

Financial Services and Tourism Add Momentum

Financial intermediation, insurance and related activities expanded 8.4% in July. Private-sector credit in both local and foreign currency grew 8.0%, equivalent to approximately RD$192 billion more than in July 2025.

Tourism-related activity also continued to support the economy. Hotels, bars and restaurants grew 5.6% as international visitor arrivals increased. The Dominican Republic received 921,682 tourists in July, 6.7% more than a year earlier.

For the first seven months of 2026, international arrivals through the country’s airports reached 5,885,025 visitors, representing 9.4% year-over-year growth. Tourism therefore remains an important source of demand for accommodation, food services, transportation and other businesses connected to international travel.

Other service activities also recorded significant gains in July. Education increased 8.0%, other market services rose 6.1%, professional services and transportation and storage each grew 5.2%, and electricity and water expanded 4.6%.

Growth Continues Despite External Pressures

The July results came as international geopolitical tensions continued to place pressure on production costs, particularly through higher oil prices and freight expenses. For an economy that relies heavily on imports of energy and goods, changes in international commodity and transportation costs can influence businesses across multiple sectors.

Even so, the Dominican Republic entered the second half of 2026 with broad-based expansion across construction, manufacturing, services and tourism. The economy’s cumulative 4.5% growth through July reflects a recovery that is being supported by investment, credit and continued external demand.

The latest figures reinforce the importance of construction, export manufacturing, tourism and financial activity to the country’s economic performance. At the same time, the sharp contraction in mining shows that growth remains uneven across sectors and that external conditions can significantly affect individual industries.

The Central Bank of the Dominican Republic reported the July IMAE results on August 25, providing the latest official snapshot of economic activity as the country moves through the second half of the year.