SANTO DOMINGO – The Dominican Republic's economy is consolidating its position as one of the most dynamic in Latin America and the Caribbean, according to the latest World Bank projections, which estimate a 4.5% growth in real Gross Domestic Product (GDP) by 2026. This forecast places the country above the regional average and reinforces its position as an attractive destination for investment, especially in sectors related to real estate development, construction, tourism, and services.
The report, contained in the international organization's updated World Economic Outlook , highlights that the Dominican economy maintains solid macroeconomic fundamentals in a global context marked by slowdown, persistent inflation in several regions, and geopolitical tensions that continue to affect trade and investment flows.
Regional leadership in economic growth
According to the World Bank, the Dominican Republic is projected to outperform economies such as Panama, Argentina, Paraguay, Guatemala, and Costa Rica, as well as larger countries like Brazil, Mexico, Colombia, and Chile. This projection reinforces the country's position as one of the region's economic engines, with sustained expansion that has been maintained even in adverse international environments.
The organization notes that, while Latin America and the Caribbean would grow on average below 3%, the Dominican economy would continue to advance at a faster pace, driven by domestic consumption, private investment and the dynamism of key sectors such as construction, trade and services.
Investment, construction, and stability as the cornerstones of performance
The World Bank attributes this performance to a combination of macroeconomic stability, prudent fiscal and monetary policy management, and a relatively favorable investment environment. In particular, it highlights the role of investment in infrastructure and urban development as one of the factors sustaining economic expansion, along with growth in tourism and related activities.
The strengthening of the construction sector, both residential and tourist and commercial, continues to be one of the main drivers of the economy, with a direct impact on employment, the demand for financing and the development of new urban areas and investment hubs at the national level.
Structural challenges and medium-term sustainability
Despite the positive outlook, the World Bank warns that sustaining this growth rate will require improvements in productivity, stronger institutions, and greater social inclusion. The organization emphasizes the need to continue strengthening human capital, modernizing infrastructure, and increasing the efficiency of public spending to ensure that economic growth translates into sustainable well-being.
It also points out that factors such as climate change, informal employment, and dependence on specific sectors represent structural challenges that must be addressed to preserve the country's competitiveness in the medium and long term.
With these projections, the Dominican Republic remains one of the economies with the best prospects in the region, sending a positive signal to local and foreign investors in an international context marked by caution and the search for stable markets with sustained growth potential.
