SANTO DOMINGO – The year 2025 is ending with an economic outlook marked by slower growth. Specialists and official reports confirm that it has been a year in which growth declined for the concrete block and cement sector.
Economist Francisco Tavarez recently stated that “the year-end forecast is 2% to 2.2%, whereas the macroeconomic framework had projected 5%.” This discrepancy is also reflected in the Building Supply Registry (ROE 2025-1), which reports a construction sector with reduced activity.
The official report from the National Statistics Office (ONE) counted 6,482 construction projects in the metropolitan area. Of these, 59.7% are stalled, 21.4% are underway, and 16.3% are completed. These figures show a limited level of progress compared to previous periods.
Tavarez described the situation as a departure from the historical average for the economy. Statistical records confirm this slowdown: only 12.1% of projects have been completed, while the majority remain under review.
The economist lamented that “a sector as powerful as construction, which represents 13 or 14% of GDP, has ground to a halt.” ROE data supports this assertion: more than half of the projects were stopped during the year.
Monetary conditions also influenced this result. The specialist explained that “the Central Bank has maintained interest rates around 5.25%, but this reduction has not been reflected in lending rates.” The sector report shows that the proportion of projects intended exclusively for sale fell to 11.2%, compared to 12.6% in the previous period.
Public debt was another factor mentioned by Tavarez. “When the government seeks financing through the stock market by issuing bonds, it reduces opportunities for the private sector. This is known as the crowding-out effect,” he stated. Meanwhile, the statistical report indicates that 39.8% of the projects are expansions and 0.7% are renovations.
The lack of domestic consumption is also reflected in construction. “If the private sector isn't investing enough, if consumption is slowing down, it's clear that people understand there's no money circulating,” the professor said.
Household income is another key element. Tavarez noted that “the average salary in the Dominican Republic in the formal sector is 33,000 pesos per month. If you compare that to the average family's basic needs, it covers 60–65%.”.
Wage disparity and informality limit the capacity to stimulate the economy. “The informal sector practically doesn't have enough income to stimulate the economy. And that represents 55%,” Tavárez pointed out.
He added that “for a household to cover the basic food basket, at least two people must work with that level of salary.” This limitation on consumption is reflected in the reduction of new construction projects and the preference for multi-family housing.
The end of 2025 shows that the economist's warnings and the ROE data coincide in the same diagnosis: construction, the main engine of growth, became a reflection of the economic slowdown, with fewer new projects, more adjustments and a market conditioned by public debt, insufficient wages and lack of credit.
