Dominican Republic Economic Outlook
Regional growth leader:
The Dominican Republic is the largest economy in the Caribbean and one of the fastest-growing in Latin America. Between 2010 and 2019, the country averaged GDP growth of over 5% annually, driven by robust investment, tourism, and remittances. Even after the pandemic-induced contraction of 6.7% in 2020, the economy rebounded swiftly, expanding by 12.3% in 2021. However, growth moderated in 2023 amid tighter monetary conditions and slowing external demand.
Tourism and remittances:Tourism is a key pillar of the Dominican economy, with the country being the most visited destination in the Caribbean. The sector contributes over 15% of GDP and employs a significant share of the workforce. In 2023, the country welcomed a record 10 million visitors, boosting foreign exchange reserves. In addition, remittances—mainly from the U.S. and Spain—account for around 10% of GDP and serve as a vital source of income for many households, supporting private consumption.
Diversified economy:Beyond tourism, the Dominican Republic has developed a diversified economic base, with strong performance in free-trade zone manufacturing, mining, and construction. The country is a leading global exporter of gold and ferronickel, benefiting from high commodity prices. Additionally, the government has sought to position the nation as a nearshoring hub, attracting investment in pharmaceuticals, electronics, and textiles to its export-oriented industrial parks.
Challenges and structural weaknesses:Despite its strong economic trajectory, the country faces persistent structural challenges. Informality remains high, with over 50% of workers employed outside the formal sector. Public debt, at around 60% of GDP, has increased following pandemic-related spending. Inflationary pressures, exacerbated by global commodity price volatility, have also eroded purchasing power, prompting the central bank to tighten monetary policy. Additionally, energy supply constraints and inadequate infrastructure remain bottlenecks for long-term growth.
Dominican Republic economic outlook:Looking ahead, the Dominican Republic’s economy is expected to continue outperforming the regional average, with GDP growth projected at 4–5% over the medium term. The country will benefit from sustained foreign direct investment, tourism expansion, and government infrastructure projects. However, downside risks remain, including external shocks, climate-related vulnerabilities, and fiscal sustainability concerns. Strengthening governance, improving education, and addressing income inequality will be key to maintaining the country’s economic dynamism.
Dominican Republic's Macroeconomic Analysis:
Nominal GDP of USD 124.6 billion in 2024.
Nominal GDP of USD 121.8 billion in 2023.
Nominal GDP of USD 121.8 billion in 2023.
GDP per capita of USD 11,377 compared to the global average of USD 10,589.
GDP per capita of USD 11,377 compared to the global average of USD 10,589.
GDP per capita of USD 11,542 compared to the global average of USD 10,589.
Average real GDP growth of 5% over the last decade.
Average real GDP growth of 5.1% over the last decade.
Average real GDP growth of 5.1% over the last decade.
Sector Analysis
In 2022, services accounted for 56.0% of overall GDP, manufacturing 13.7%, other industrial activity 23.9%, and agriculture 6.4%. Looking at GDP by expenditure, private consumption accounted for 64.7% of GDP in 2023, government consumption 11.3%, fixed investment 31.3%, and net exports -7.3%.International trade
In 2022, manufactured products made up 68.8% of total merchandise exports, mineral fuels 1.1%, food 12.2%, ores and metals 2.5% and agricultural raw materials 0.8%, with other categories accounting for 14.6% of the total. In the same period, manufactured products made up 70.2% of total merchandise imports, mineral fuels 16.4%, food 20.0%, ores and metals 1.6% and agricultural raw materials 1.3%, with other goods accounting for -9.5% of the total. Total exports were worth USD 13.90 billion in 2024, while total imports were USD 29.80 billion.Main Economic Indicators
Economic growthThe economy recorded average annual growth of 5.1% in the decade to 2024. To read more about GDP growth in Dominican Republic, go to our dedicated page.
Fiscal policy
Dominican Republic's fiscal deficit averaged 3.1% of GDP in the decade to 2023. Find out more on our dedicated page.
Unemployment
The unemployment rate averaged 6.3% in the decade to 2024. For more information on Dominican Republic's unemployment click here.
Inflation
Inflation averaged 3.9% in the decade to 2024. Go to our Dominican Republic inflation page for extra insight.
Monetary Policy
Dominican Republic's monetary policy rate ended 2024 at 6.00%, down from 6.25% a decade earlier. See our Dominican Republic monetary policy page for additional details.
Exchange Rate
From end-2014 to end-2024 the peso weakened by 27.3% vs the U.S. dollar. For more info on the peso, click here.
Economic situation in Dominican Republic
Annual GDP growth continued to slow in Q1 2025 for the fourth consecutive quarter. Preliminary data suggests that the services sector—which makes up over half of all economic activity—lost steam. Manufacturing and construction output was also sluggish, likely due to labor shortages caused by ongoing deportations of Haitian immigrants. Turning to Q2, available data suggests the economy is decelerating further: Economic activity growth fell to a near one-year low in April as the manufacturing sector cooled and construction output weakened, still restrained by worker shortages. Nevertheless, our Consensus is for GDP growth to strengthen from Q1 in Q2 as a whole; fears over U.S. deportations of Dominican citizens could be fueling remittance inflows. In other news, the Trump administration has proposed a new tax on remittances from the U.S. abroad, which could hit Dominican household budgets.Dominican Republic Economic Forecasts
Projections out to 2034.47 indicators covered including both annual and quarterly frequencies.
Consensus Forecasts based on a panel of 17 expert analysts.
Want to get insight on the economic outlook for Dominican Republic in the coming years? FocusEconomics collects projections out to 2034 on 47 economic indicators for Dominican Republic from a panel of 17 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts, and averaged to provide one Consensus Forecast you can rely on for each indicator. This means you avoid the risk of relying on out of date, biased or outlier forecasts. Our Consensus Forecasts can be visualized in whichever way best suits your needs, including via interactive online dashboards , direct data delivery and executive-style reports which combine analysts' projections with timely written analysis from our in-house team of economists on the latest developments in the Dominican Republic economy. To download a sample report on the Dominican Republic's economy, click here. To get in touch with our team for more information, fill in the form at the bottom of this page.