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According to the International Monetary Fund (IMF), the Dominican Republic will be the second fastest-growing economy in the world in 2026.
The IMF’s Economic Outlook for the Western Hemisphere says the Dominican Republic’s GDP will grow by 4.8% in 2026. This rate is higher than most countries in the Americas, except some Caribbean nations that don’t rely on tourism.
By the end of 2025, the IMF predicts the Dominican Republic’s economy will grow by 4.0%, behind Argentina’s 5.5%. But in 2026, the Dominican Republic will outpace Argentina, which is expected to grow by 4.5%.
The IMF report says that in the region, consumer spending is the main reason for economic growth, while investment remains weak. Growth across the region is expected to slow down from 2.4% in 2024 to 2.0% in 2025. Long-term problems continue to limit growth.
The report urges countries to improve their budgets (called “fiscal consolidation”) because there’s less room to cut interest rates, and the global economy is facing new difficulties.
In 2026, Panama’s economy is expected to grow by 4%, Guatemala by 3.8%, Honduras by 3.4%, Nicaragua by 3.1%, Costa Rica by 3.4%, and El Salvador by 2.5%. Haiti is expected to grow by just 1%, after shrinking this year.
The Central American region is expected to grow 3.8% in 2025 and 3.9% in 2026.
Rodrigo Valdés from the IMF said US tariffs are making things harder for Caribbean countries that depend on tourism, but so far there have been no hotel booking cancellations.
Valdés said the region’s average growth will be around 2%—a drop from the previous forecasts of 2.4% and 2.5%. US tariffs are hurting countries like Mexico and Brazil. There’s also concern that demand could fall and that fewer migrants and remittances could hurt regional economies.
Source: Dominican Today, Listin Diario.
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