Despite prevailing adverse global conditions, the real Gross Domestic Product (GDP) grew by an accumulated 2.2% from January to September 2025. This is well below the 4-5% GDP growth that has been the normal for the Dominican Republic in the past. Governor Hector Valdez Albizu speaking during the anniversary celebrations for the Central Bank expressed optimism for a stronger outlook, forecasting a gradual return to the nation’s full economic potential.
“The Dominican economy is expected to gradually return to its potential growth in the coming quarters, as global uncertainty dissipates, private investment reactivates, and public sector capital expenditure increases,” the Governor said.
One of the reasons is that the Dominican Republic continues to shine as a premier destination for foreign investment, with direct investment reaching US$4 billion from January to September 2025, according to Central Bank Governor Héctor Valdez Albizu.
Delivering the keynote address at the Central Bank of the Dominican Republic’s (BCRD) 78th-anniversary celebration, Valdez Albizu outlined the robust economic fundamentals positioning the country as a major investment hub.
The Central Bank governor highlighted the country’s success in maintaining price stability, noting that year-on-year inflation stood at 3.76% in September, keeping it within the de 4.0 % ± 1.0 % target range for the 29th consecutive month. This figure is one of the lowest among non-dollarized economies in Latin America. Core inflation, which better reflects monetary conditions, was 4.35% year-on-year.
Key sectors driving this growth included:
• Agriculture (3.9%)
• Mining and Quarrying (3.7%)
• Financial Services (7.4%)
• Hotels, Bars, and Restaurants (3.3%)
Tourism remained a powerhouse, with 8.6 million visitors (6.6 million air arrivals and 2 million cruise passengers) recorded in the first nine months of the year, a 2.7% increase year-on-year.
Monetary policy and financial system strength
Valdez Albizu detailed the Central Bank’s measures to support domestic demand:
• The BCRD reduced its monetary policy rate by 25 basis points to 5.50% after eight months of stability.
• The Monetary Board approved an RD$81 billion liquidity provision program to facilitate credit, of which RD$66 billion has been disbursed to support businesses and households.
• These measures have effectively lowered interest rates: the weighted average passive rate for multiple banks dropped from 10.3% in October 2024 to 6.6% in October 2025, and the active rate decreased from 15.3% to 13.9% over the same period.
The financial system shows strong health, with the following indicators as of September 2025:
• Total assets grew by 11.5% and equity increased by 10.2%.
• Return on Equity (ROE) was 21.7% and Return on Assets (ROA) was 2.6%.
• Regulatory solvency reached 18.4% in June, significantly above the 10% minimum requirement.
Foreign exchange and reserves at record highs
Valdez Albizu underscored the remarkable performance of the external sector, which is fueling the Dominican Republic’s resilience:
• Foreign Direct Investment (FDI) hit US$4 billion from January to September, with a forecast to exceed US$4.8 billion by the end of 2025, more than enough to cover the projected current account deficit of 2.5% of GDP.
• Total exports reached US$11.6 billion (11.7% year-on-year growth).
• Foreign exchange earnings from tourism were US$8.5 billion and from remittances were US$8.9 billion.
These robust inflows have ensured currency stability, with the accumulated depreciation of the Dominican peso at a modest 2.3% through September. Furthermore, international reserves stood at US$13.3 billion at the end of September, equivalent to 10.4% of GDP and nearly five months of imports, surpassing IMF-recommended thresholds.
Outlook for 2025-2026
Valdez Albizu projected a return to greater economic dynamism, forecasting GDP growth of around 2.5% in 2025 and a return to the 4.0% to 5.0% potential growth range for 2026.
The economy is anticipated to generate approximately US$46 billion in foreign exchange in 2025, primarily driven by:
• Exports: US$14.9 billion
• Tourism revenue: US$11.2 billion
• Remittances: US$11.7 billion
Valdez Albizu also spoke of the ongoing regulatory modernization and the imminent launch of a new payment platform enabling 24/7 transfers, further enhancing the country’s business and financial environment.
Read more in Spanish:
Central Bank
Noticias SIN
El Dia
29 October 2025