DOMINICAN REPUBLIC · ECONOMY · CENTRAL BANK
The Dominican Republic’s economy grew 5.6% in September from a year earlier, the central bank’s governor announced on Friday 23 October, taking growth for the first nine months of 2026 to 4.6%.
Key Facts
- —September The economy grew 5.6% from a year earlier, and 4.6% over January to September.
- —Forecast The central bank expects growth of about 4.5% for 2026 as a whole.
- —Prices Inflation was 5.12% in September, just above the 3% to 5% target range.
- —Dollar income Tourism brought in about US$9.7 billion and remittances more than US$9.4 billion from January to September.
- —Interest rate The policy rate rose 25 basis points to 5.50% after the September meeting.
The Dominican Republic’s economy grew 5.6% in September compared with a year earlier, and growth for January to September reached 4.6%, Governor Héctor Valdez Albizu of the Banco Central de la República Dominicana (BCRD) announced on Friday 23 October. He gave the figures at the bank’s 79th anniversary ceremony, and the bank published a summary and the speech the same day.
For US readers the figures show how a popular Caribbean destination, and the home country of a large diaspora in the United States, is holding up while inflation runs above target. The bank also puts tourism income at about US$9.7 billion and remittances at more than US$9.4 billion for the first nine months of the year.
In Plain English
- BCRD is the Banco Central de la República Dominicana, the central bank, led by Governor Héctor Valdez Albizu.
- IMAE is the bank’s monthly indicator of economic activity, its month-by-month measure of the economy’s output.
- Year on year means a month is compared with the same month a year earlier, so a weak base month flatters the result.
- Policy rate is the interest rate the central bank sets to steer borrowing costs and prices; it is now 5.50%.
- Inflation target is 4%, with a band of one percentage point either side.
What the Central Bank Announced
In the speech, Valdez Albizu said the IMAE grew 5.6% year on year in September, “highlighting the dynamism of domestic investment and the resilience of the external sector” (our translation). The cumulative gain for January to September was 4.6%.
For those nine months the bank named construction (8.2%), mining and quarrying (5.2%), local manufacturing (3.4%) and free-trade-zone production (2.8%) among the sectors behind the expansion. Services as a whole grew 4.6%, led by financial services (7.8%), hotels, bars and restaurants (5.6%) and other services (5.4%).
The governor expects the economy to expand about 4.5% in 2026, which he called one of the highest growth rates in Latin America. Listín Diario carried the same sector figures on Saturday 24 October, including construction at 8.2% and mining at 5.2%.
From the Governor’s Speech, January to September
- —Exports About US$13.2 billion of goods; free zones and national exports each topped US$6.5 billion.
- —Tourism About US$9.7 billion in tourism income.
- —Remittances More than US$9.4 billion sent home by Dominicans abroad.
- —Foreign investment About US$4.5 billion, mainly in energy, tourism and real estate.
- —Reserves More than US$15.2 billion at the end of September, about 5.4 months of imports.
- —Jobs 5,271,005 people employed in the second quarter, up 2.9%; unemployment 5.3% in April to June.
How September Compares
The bank’s published monthly series, which ran only to August as of Sunday 25 October, shows growth of 3.8% in August and 6.4% in June. September’s 5.6% would therefore be the second-fastest month of 2026, after June.
Part of the jump comes from a weak comparison month, because the same series shows September 2025 grew only 1.1%, among the slowest months of last year. The file also gives 4.46% growth for January to August, which the governor’s 4.6% for nine months lifts a little.
Monthly Growth in 2026, Year on Year
- —January 3.5%
- —February 3.9%
- —March 5.1%
- —April 3.8%
- —May 4.7%
- —June 6.4%, the fastest month so far
- —July 4.6%
- —August 3.8%
- —September 5.6%, the governor’s preliminary figure
For the whole of 2025 the same series shows growth of 2.1%, so the 4.6% so far in 2026 is more than double that pace. The September number is the governor’s preliminary figure and had not yet been added to the monthly file, which carries a note that its latest figures are preliminary.
Prices, Interest Rates and the Peso
Consumer prices rose 5.12% in the 12 months to September, the bank’s price report shows, down from a peak of 5.67% in June but still above the target of 4% plus or minus one percentage point. Core inflation, which strips out the most volatile prices, stood at 4.61%, inside the range.
The governor blamed the temporary breach mainly on pressure from the global energy shock and said he expects inflation to return to the target range in the last quarter, provided international risks and weather effects on farm output stay contained. He added that the 25-basis-point rise in the policy rate to 5.50%, decided at the September meeting, was meant to keep expectations anchored.
He also said the peso had appreciated 5.4% by the end of September, helped by foreign-currency inflows from tourism, remittances and investment, although the bank’s summary does not state the period it covers. The bank’s treasury notice puts its buying rate at RD$60.3454 and its selling rate at RD$60.7345 to the US dollar at the close on Friday 23 October.
What It Means for You
If you are visiting, a stronger peso, which the governor says has gained 5.4%, means a US dollar buys fewer pesos than before, with the bank’s Friday rate at about RD$60.3 to RD$60.7 to the dollar. Prices quoted in dollars do not change, but anything priced in pesos, from taxis to meals, costs a little more in dollar terms.
Dominican Today, citing central bank data, reported that the country received 2,186,532 US tourists in January to July, up 4.1% from a year earlier. If you send money to family there, each dollar now converts into fewer pesos, even as the bank counts more than US$9.4 billion in remittances for nine months.
If you invest or own property, the bank’s figures put foreign direct investment at about US$4.5 billion and reserves above US$15.2 billion, which it puts at about 10.5% of GDP. One speech is not a forecast for any asset, and the bank itself lists energy prices and weather as risks.
What Is Not Known
The detailed September data are missing, because the bank has not yet published the month’s sector breakdown. It is therefore not clear how much of the 5.6% came from construction, tourism or manufacturing.
Open Questions
- —September detail The sector breakdown for the month had not been added to the bank’s monthly file.
- —The peso’s gain The 5.4% appreciation is given without a start date in the published summary.
- —Inflation path A return to the target range in the last quarter depends on energy prices and weather.
- —Revisions The bank’s monthly figures are preliminary and can change.
The bank’s summary does not break remittances or tourism income down by country, so the share that comes from the United States cannot be read from it. Dominican Today’s count of 2,186,532 US tourists, which it attributes to the bank, was not found in the bank’s published air-arrivals file, which splits visitors only by residence.
The speech was delivered on Friday 23 October and Dominican outlets reported it on Saturday 24 October. The next monthly update from the bank will show whether the 5.6% holds up.
Frequently Asked Questions
How fast is the Dominican economy growing?
The central bank says the economy grew 5.6% in September from a year earlier and 4.6% in January to September. It expects growth of about 4.5% for 2026 as a whole.
What is the IMAE?
The IMAE is the central bank’s monthly indicator of economic activity, a month-by-month measure of output across the economy. Growth is normally reported against the same month a year earlier.
What is inflation in the Dominican Republic?
Inflation was 5.12% in the 12 months to September, down from a June peak of 5.67%. The central bank’s target is 4%, give or take one percentage point.
What is the Dominican peso worth in US dollars?
The central bank’s buying rate at the close on Friday 23 October was RD$60.3454 to the US dollar, and its selling rate was RD$60.7345. The rate changes every business day.
How much do tourism and remittances bring in?
The governor put tourism income at about US$9.7 billion and remittances at more than US$9.4 billion for January to September. Both are preliminary bank figures.
Connected Coverage
- —Pillar Who Runs Dominican Republic’s Economy in 2026
- —Pillar Dominican Republic Explained 2026: Economy and Politics
- —City Santo Domingo City Guide for Expats and Visitors
- —News Dominican Republic Central Bank Raises Rate to 5.50%
- —News Dominican Republic Inflation Holds at 5.12%
- —News Dominican Remittances Rise 6.5% to US$9.49 Billion
Sources: Banco Central de la República Dominicana, press release on the governor’s speech, 23 October 2026, Banco Central, governor’s speech at the 79th anniversary (PDF), Banco Central, Monthly Indicator of Economic Activity (IMAE) series, data to August 2026, Banco Central, consumer price report for September 2026, Banco Central, policy rate series, Banco Central, treasury exchange-rate notice of 23 October 2026, Listín Diario, 24 October 2026, Dominican Today, 24 October 2026, Dominican Today, on US tourist arrivals. Exchange rate: Banco Central buying rate of RD$60.3454 to the US dollar at the close on Friday 23 October 2026. All retrieved 25 October 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief