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Obreros con cascos y chalecos en una obra en construcción con grúas torre sobre el perfil urbano de Santo Domingo al atardecer
Una obra en construcción con grúas sobre Santo Domingo, en una imagen alusiva al crecimiento liderado por la construcción. · Imagen generada para EPM

Dominican economy grows 4.6 percent as household pressure persists

The Dominican economy grew 4.6 percent accumulated through September, driven by construction and finance, with support from tourism, exports and foreign…

--- The context --- The Dominican Republic closed the first nine months with strength in the general indicators, while families face rising costs for essential goods and services that pressure everyday budgets. --- The facts --- As reported by the governor of the Central Bank of the Dominican Republic, Héctor Valdez Albizu, the economy grew 4.6 percent accumulated between January and September. The presentation took place at the seventy-ninth anniversary event of the issuing institution in Santo Domingo. Construction led activity with 8.2 percent, followed by financial services with 7.8 percent. Hotels, bars and restaurants grew 5.6 percent, mines and quarries advanced 5.2 percent, local manufacturing rose 3.4 percent and free zones increased 2.8 percent. Tourism captured 9,700 million dollars, exports added 13,200 million dollars and foreign direct investment exceeded 4,500 million dollars. The employed labor force reached 5,271,005 people in the second quarter. --- The positions --- The solidity of the macroeconomic data and sector dynamism stand out. However, analysts warn that labor market expansion does not automatically offset deteriorating purchasing power when real incomes do not evolve in step with the cost of living. --- What remains unknown --- What remains unclear is how real incomes will evolve against the cost of living and whether sector dynamism will bring relief to households, amid pressure on basic foods, rent, medicines and electricity rates. --- Unanswered questions --- Will growth translate into a tangible improvement in family purchasing power? Will real incomes keep pace with the cost of living? Will food, rent, medicine and electricity prices moderate? --- EPM analysis --- Construction and finance lead, tourism and exports sustain foreign exchange and employment is broad, but pressure on essential spending continues to define the economic perception of many families at the end of each month. 📌 EPM Take: In EPM's view, growth of 4.6 percent confirms an economy with active engines, although its social legitimacy will depend on whether the advance is felt at the table, in rent and at the pharmacy. Without an improvement in purchasing power alongside construction, finance and tourism, the gap between the indicator and daily life will keep feeding skepticism. The challenge is not only to grow, but to ensure that growth reaches households across the country in a tangible and lasting way.
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