Construction and Tourism Drive Dominican Economy to Strong Start

In a significant turnaround from 2025, the construction sector in the Dominican Republic has shown remarkable growth, recording a 7.9% increase in August and an accumulated growth of 7.0% for the year 2026. This growth is the highest among all sectors measured by the Monthly Economic Activity Indicator (IMAE), which overall has advanced by 4.5% from January to August, compared to just 2.3% during the same period last year.

The Central Bank attributes this resurgence to two interlinked drivers: an increase in public capital expenditure, which reached 2.9% of GDP in 2025, and a revival of private investment in residential, commercial, and tourism projects, facilitated by more flexible credit conditions. The credit allocated to construction surged by 16.2% year-on-year by the end of August, amounting to an additional RD$26 billion compared to the same month in 2025.

The tourism sector has also demonstrated impressive growth, with hotels, bars, and restaurants experiencing a 2.3% increase in August and a cumulative growth of 5.4% from January to August 2026. This growth is underscored by the fact that the Dominican Republic welcomed 8,556,415 visitors in the first eight months of 2026, representing a 6.9% increase compared to 2025, a 9.8% rise from 2024, and a staggering 58.9% increase compared to 2019, the last year before the pandemic.

Notably, August 2026 set a record for tourist arrivals, with 725,560 tourists arriving by air, the highest number ever recorded for that month. Additionally, 131,298 cruise passengers visited, marking a 31.9% year-on-year increase. Minister of Tourism David Collado highlighted these figures as “another record in the history of Dominican tourism.”

Despite the positive growth figures, the construction sector faces persistent structural bottlenecks that could hinder future progress. Industry leaders, including Annerys Meléndez, president of the Association of Construction Companies (Acoprovi), have pointed out that high-interest rates and slow approval processes for new projects continue to inflate costs for buyers. These challenges could dampen the momentum that the sector has built over the past year.

Moreover, while the tourism sector is thriving, it too must navigate challenges such as maintaining infrastructure and ensuring sustainable growth. The influx of visitors requires continuous investment in facilities and services to meet rising demand. Addressing these issues will be crucial for sustaining the positive trends observed in both the construction and tourism sectors.