Preliminary data released by the Central Bank of the Dominican Republic (BCRD) shows the nation’s economy expanded by 4.5% across the first eight months of 2026, marking a significant acceleration from the 2.3% growth recorded in the same period one year prior.
Breaking down August’s standalone performance, the Monthly Indicator of Economic Activity (IMAE) logged a 3.8% year-on-year increase. The growth was broad-based across most major sectors, with only two key segments posting negative contractions: mining saw a 14.6% drop, while agriculture declined by 1.4%. Leading the upward momentum was the construction sector, which notched 7.9% value-added growth, followed by 3.4% expansion for free-trade zone manufacturing and 3.1% growth for domestic manufacturing.
The services sector, a core pillar of the Dominican economy, delivered a solid 4.1% overall increase in August. Leading the segment’s growth was financial services, which surged 9.4%, followed by education at 6.1%, energy and water utilities at 6.0%, and other market service activities also at 6.0%. Additional gains were recorded across transport and storage (3.7%), wholesale and retail trade (3.2%), public administration (3.1%), health services (2.8%), professional services (2.7%), communications (2.6%), and hospitality (2.3%).
The construction sector stood out as one of the strongest performers in August, growing 9% year-on-year. BCRD attributes this robust expansion to multiple driving forces: a wave of private investment in both residential and non-residential projects, large-scale civil engineering works funded by government capital spending, and recent institutional reforms that have streamlined approval processes for new developments while boosting regulatory transparency. The bank also highlighted a sharp rise in lending to the sector: year-on-year construction credit growth hit 16.2% at the end of August, equal to an additional RD$26 billion in financing compared to August 2025.
For free-trade zone manufacturing, the 3.4% annual growth was fueled by strong export demand for key Dominican products including processed tobacco, fine jewelry and related accessories, and electrical goods. Domestic manufacturing, meanwhile, saw moderate expansion driven by increased output of mineral products, specialty chemicals, and pharmaceutical goods.
Hospitality, a critical revenue driver for the Caribbean nation, recorded 2.3% annual revenue growth in August 2026, supported by steady international visitor volumes. The country welcomed 725,481 non-resident tourists during the month, matching the arrival count from August 2025 after years of post-pandemic growth. BCRD credited the Tourism Ministry’s targeted marketing strategies, which focus on strengthening demand in key source markets while expanding outreach to attract visitors from new regions, for sustaining stable performance in the sector.
The agriculture sector’s 1.4% annual contraction was directly tied to prolonged drought conditions that have impacted multiple agricultural regions across the country in recent months. Key commodities including rice, legumes, certain livestock feed, and pork all posted output declines compared to 2025. Even with the monthly contraction, the BCRD noted that the sector has still accumulated net growth over the full January-to-August period.
Mining’s steeper 14.6% annual decline in August was not tied to long-term market weakness, but rather to scheduled maintenance work at the country’s largest gold extraction facility, which reduced output for the month. Even with the August pullback, the mining sector has still posted 3.6% accumulated growth across the first eight months of 2026.