The Dominican Republic is poised to lead Latin America’s economic recovery with a projected growth rate of 4.5% in 2026, according to the latest Global Economic Prospects 2026 report released by the World Bank.
The report identifies the Caribbean nation as the region’s top performer, outpacing its neighbors during a period of otherwise modest regional expansion. While much of Latin America and the Caribbean (LAC) grapples with structural hurdles and volatile commodity markets, the Dominican Republic has emerged as a “notable exception” fueled by resilient domestic demand and a surging service sector.
World Bank economists attribute the country’s frontrunner status to a combination of disciplined macroeconomic policy and a robust rebound in high-value sectors. “The Dominican Republic continues to distinguish itself through consistent policy frameworks that have stabilized inflation more effectively than many regional peers,” the report noted, reinforcing the country’s reputation as a safe harbor for capital.
Key pillars of this 4.5% expansion include:
A tourism powerhouse: The continued expansion of the tourism industry remains the primary engine of the economy, attracting record foreign exchange and driving job creation.
Investment appeal: The country maintains its status as the premier destination for Foreign Direct Investment (FDI) in the Caribbean, with significant capital flowing into energy, infrastructure, and free-trade zones.
The diaspora effect: Stable remittance inflows, particularly from the United States, provide a vital cushion for household consumption, keeping local markets active despite global inflationary pressures.
However, the World Bank issued a note of caution regarding external vulnerabilities. Analysts warned that the nation remains sensitive to economic shifts in the United States, the country’s largest trading partner, and faces ongoing risks from climate-related shocks, which can impact agricultural output and infrastructure.
Despite these headwinds, the 2026 outlook remains decidedly bullish. By maintaining the highest growth trajectory in Latin America, the Dominican Republic continues to narrow the income gap with more advanced economies, solidifying its position as the regional “growth engine” for the foreseeable future.
Read more:
World Bank report
Diario Libre
19 January 2026