As a result of foreign currency inflows, international reserves stood above US$15.2 billion at the end of September, according to figures presented by the Central Bank governor
SANTO DOMINGO.– The Dominican Republic projects generating around US$50.7 billion in foreign exchange by the end of 2026, driven by tourism revenues, exports, remittances, and foreign direct investment, reported the governor of the Central Bank of the Dominican Republic (BCRD), Héctor Valdez Albizu, during the commemoration of the institution's 79th anniversary.
Official estimates project over US$17.2 billion in total exports, approximately US$12.6 billion in remittances, and roughly US$12.2 billion in tourism revenue. These resources would be complemented by nearly US$5.3 billion in foreign direct investment (FDI), strengthening the country's foreign currency reserves and external position.
In that context, Valdez Albizu highlighted that the combination of these flows contributes to sustaining exchange rate stability and supporting economic growth prospects, despite the difficulties that persist in the international landscape.
Foreign investment exceeds US$4.5 billion through September
Between January and September 2026, foreign direct investment reached approximately US$4.5 billion, with significant contributions from sectors such as energy, tourism , and real estate. According to the governor, this result reflects investor confidence in the Dominican Republic's economic conditions.
Total exports reached approximately US$13.2 billion during the first nine months of the year. Within this amount, exports from free trade zones and national exports each exceeded US$6.5 billion.
On the other hand, tourism-related income amounted to approximately US$9.7 billion, while remittances sent by Dominicans residing abroad exceeded US$9.4 billion in the same period.
In this way, the performance of these activities maintains a relevant contribution to the inflow of foreign currency, while diversifying the sources of external resources received by the national economy.
International reserves exceed US$15.2 billion
As a result of foreign currency inflows, international reserves stood above US$15.2 billion at the end of September, according to figures presented by the Central Bank governor.
This level is equivalent to approximately 10.5% of the gross domestic product (GDP) and allows to cover about 5.4 months of imports, indicators that exceed the reference parameters recommended by the International Monetary Fund (IMF).
Meanwhile, the Dominican peso registered an appreciation of 5.4% through September, a behavior that Valdez Albizu related to the availability of foreign currency from exports, tourism, remittances and foreign investment.
Therefore, the evolution of reserves and the inflow of external resources are important elements to assess the country's ability to meet its international obligations and cope with potential pressures on the foreign exchange market.
Economy grows 4.6% between January and September
Regarding productive activity, the governor reported that the Dominican economy accumulated a year-on-year growth of 4.6% during the first nine months of 2026. In addition, the monthly indicator of economic activity registered an expansion of 5.6% in September, reflecting greater dynamism at the close of the analyzed period.
Among the sectors with positive results, construction stood out with 8.2% growth, followed by financial services, which advanced 7.8%. Hotels, bars, and restaurants also saw increases of 5.6%, mining and quarrying 5.2%, local manufacturing 3.4%, and free trade zones 2.8%.
Based on these results, the Central Bank maintains its forecast that real gross domestic product will grow by around 4.5% by the end of the year, subject to the evolution of external conditions and other factors that affect economic activity.
Inflation remains above the upper limit of the target.
Although the economic outlook points to sustained expansion, price behavior continues to be among the main challenges for monetary policy. Year-on-year inflation stood at 5.12% in September, after reaching a peak of 5.67% in June.
As Valdez Albizu explained, the pressures related to the international energy shock caused the indicator to temporarily exceed the upper limit of the target range, set between 3.0% and 5.0%.
However, core inflation remained within that range, standing at 4.61% at the end of September. Meanwhile, medium-term inflation expectations remained around 4.0%.
Given this scenario, the Central Bank raised the monetary policy rate by 25 basis points during September, to 5.50%, with the aim of containing possible additional pressures on prices and preserving the stability of expectations.
Employment and credit support domestic activity
In the labor market, employment reached 5,271,005 workers during the second quarter of 2026, representing a year-on-year growth of 2.9%, equivalent to about 147,000 new jobs in twelve months.
Meanwhile, the open unemployment rate stood at 5.3% between April and June, while informal employment reached 53.8%. In the social sphere, monetary poverty fell to 13.75% during the second quarter, a reduction of 2.9 percentage points compared to the same period in 2015.
On the other hand, private credit in national currency registered an approximate year-on-year increase of 7.4% at the end of September, driven mainly by financing for productive activities such as construction, manufacturing and commerce.
These indicators show that, in addition to external sources of income, domestic demand and access to financing continue to play a relevant role in economic performance.
Outlook will depend on the international environment
Looking ahead to the end of 2026, the Central Bank projects an economy with growth of around 4.5% and foreign exchange earnings estimated at US$50.7 billion. Inflation is also expected to return to the target range during the last quarter, provided that external risks and potential weather-related impacts on agricultural production remain under control.
Consequently, the evolution of tourism revenues, exports, remittances, and foreign investment will be crucial to sustaining the availability of foreign currency and supporting macroeconomic prospects.
However, the achievement of these estimates will depend on the behavior of international markets, energy prices, and conditions that may affect domestic production. These factors will continue to be fundamental in assessing the country's economic stability and growth rate in the coming months. (Central Bank)
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