The Central Bank highlights that the execution of private investment projects and the greater dynamism of public investment positively impacted the block and cement sector
SANTO DOMINGO –The Monthly Index of Economic Activity (IMAE) for July 2026 reflected a year-on-year increase of 4.6%. With this result, the average accumulated growth for the first seven months of the year stands at 4.5%, influenced by the improved performance of the construction, manufacturing of inputs for this sector, and mining, as well as a significant contribution from the services sector as a whole, particularly the hotel, bar and restaurant, and financial services sectors.
The Central Bank of the Dominican Republic (BCRD) indicates that the economic performance during July 2026 was primarily due to the expansion of real value added in the construction sector (8.1%), free zone manufacturing (5.5%), local manufacturing (3.7%), agriculture (1.9%), and services activities (4.8%). Among the latter, financial services (8.4%), education (8.0%), other market service activities (6.1%), hotels, bars and restaurants (5.6%), professional services (5.2%), transportation and storage (5.2%), and energy and water (4.6%) stood out. On the other hand, mining contracted by 15.9%.
The statement highlights that construction registered an 8.1% year-on-year expansion in July 2016, driven primarily by the execution of projects and increased dynamism in public investment, which is reflected in the higher sales volume of key inputs used. Similarly, institutional improvements to streamline and increase transparency in the approval processes for new construction projects. In addition, the statement notes that credit allocated to construction grew by 18.2% year-on-year at the end of July, equivalent to more than RD$28 billion more than in the same period of the previous year.
Growth variables
Regarding manufacturing in free trade zones, the agency notes that it exhibited year-on-year growth of 5.5% in July, driven by the strong performance of exports of footwear, electrical products, and manufactured tobacco. Similarly, local manufacturing grew by 3.7%, supported by the performance of metal products, non-metallic mineral products, and other manufacturing industries. As for mining, it registered a year-on-year decrease of 15.9%, associated with a decline in gold and silver extraction volumes.
It adds that the value added of hotel, bar, and restaurant activity registered a year-on-year growth of 5.6% in July 2026, driven primarily by the increase in non-resident passenger arrivals by air. During that month, 921,682 tourists were received, representing a 6.7% increase compared to July 2025. Likewise, the cumulative flow of international visitors through the various airports reached 5,885,025 people during January-July 2026, for a growth of 9.4% compared to the same period of the previous year. This favorable performance reflects the results of the tourism promotion strategies implemented by the Ministry of Tourism, aimed at strengthening the country's presence in key source markets and further diversifying the markets of origin of visitors.
Regarding financial intermediation activity, the Central Bank highlights that insurance and related activities experienced a year-on-year growth of 8.4%, influenced by the 8.0% expansion of credit directed to the private sector in national and foreign currency, equivalent to an additional RD$192 billion compared to July 2025, as well as the significant increase in the explicit commissions of the entities of the financial system.
The Central Bank of the Dominican Republic (BCRD) notes that this performance has been achieved in an international context marked by persistent geopolitical tensions, which have generated additional pressure on global production costs through increased oil prices and freight transport tariffs. Nevertheless, the Dominican economy boasts solid fundamentals, a stable financial system, and a resilient private sector, which, together with coordinated monetary and fiscal policies, will allow it to continue addressing the challenges of the external environment.
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