Dominican Republic Poverty Rate Falls to 13.75% in Q2

Monetary poverty in the Dominican Republic fell to 13.75% in the second quarter of 2026, marking a 2.9-percentage-point decline from the 16.65% recorded during the same period last year.

The latest figure, presented by Hacienda Vice Minister Alexis Cruz during the government’s weekly economic briefing at the National Palace, extends a downward trend that followed the sharp deterioration caused by the COVID-19 pandemic. Poverty had been close to 26% in 2019 before rising to around 30% in 2020.

Household Income Drives the Decline

Cruz attributed the improvement primarily to higher average household income and a better distribution of those resources. He also pointed to increases in minimum wages that outpaced inflation, continued growth in formal and informal employment, and expanded social programs aimed at lower-income families.

For the first half of 2026, the monetary poverty rate averaged 14.58%, compared with 17.35% during the same period in 2025. That represents a 2.77-percentage-point decline over the year.

Labor income increased across all regions of the country, although the pace varied considerably. The Southern region recorded the strongest growth, at 27.4%, followed by Ozama at 13.1%, the Eastern region at 12.5%, and the Northern region at approximately 1%.

Lower-Income Households See Stronger Informal Income Growth

The government also highlighted changes among the lowest-income segment of the population. In the first income quintile, earnings from informal work grew faster than income from formal employment, a trend authorities said reflects improved conditions for workers who have traditionally remained outside the formal labor market.

For this group, informal income increased by 14.4% in Ozama, 12.8% in the East, 12.4% in the North and 9.9% in the South. The figures suggest that income gains were not limited to higher-earning households, although the distribution of those gains remains an important part of the broader poverty picture.

Inflation Remains a Key Factor

The poverty figures were presented alongside an inflation rate of 5.13% accumulated so far this year, slightly above the monetary authorities’ target range. Cruz projected that inflation could move closer to 4.75% by the end of 2026.

Keeping price increases under control is particularly relevant for lower-income households because essential goods and services account for a larger share of their budgets. Cruz said efforts to contain inflation have therefore been part of the government’s response to international price pressures.

The latest figures are also part of a broader economic recovery from the pandemic shock. The continued decline in monetary poverty indicates that the improvement in employment and household income has increasingly translated into gains in measured economic well-being.

Government Says Downward Trend Is Broad-Based

Cruz said the government uses several poverty measurements, including calculations based on labor income, income plus remittances, and income incorporating additional household benefits such as school meals. He maintained that the downward trend is present across the published measurement series.

The Dominican Republic’s poverty rate remains an important indicator of whether economic growth is reaching households across different income groups. The latest results show a substantial improvement from the pandemic-era peak, while the regional differences in income growth underline the uneven pace of that recovery.

Authorities have linked the decline to a combination of wage increases, employment growth, income gains and social protection measures. The challenge going forward will be to sustain those improvements while keeping inflation under control and ensuring that economic gains continue to reach the country’s most vulnerable households.