The Dominican Republic attracted US$3,276.5 million in foreign direct investment (FDI) during the first half of 2026, 7.7% more than in the same period of the previous year. The data, published by the Central Bank of the Dominican Republic (BCRD), contrasts with the global trend: global FDI is now equivalent to 1.26% of world GDP, compared to 3.6% in 2015, according to the World Bank.
Prepared by BCRD economist, Elisa Vilorio de Painter PhD., the analysis frames the Dominican Republic’s performance in the context of the new 12.5% tariff the United States imposed last July on certain categories of Dominican products, citing concerns that some imported goods are not guaranteed to be free of forced labor. Textiles and clothing entering under CAFTA-DR were exempt. The increase is marginal compared to the 10% that had already been in force since April 2025 for other categories, and exports from free zones grew 3.2% year-on-year in the semester.
More sectors, less dependence
As a share of GDP, Dominican FDI rose from 3.1% in 2015 to 3.86% in 2025, moving in the opposite direction from the global average. This reflects a shift in the sectoral makeup of investment.
Tourism continues to be the main FDI recipient, capturing 20.1% in the first half of 2026. But the energy sector gained ground steadily: it averaged 8% of the total between 2010 and 2019, rose to 16.34% between 2020 and 2025, and reached 27.8% in the first six months of this year. That redistribution reduces the country’s exposure to the volatility of a single sector.
The Dominican Peso, one of the best performing currencies in the region
The Dominican peso appreciated 7.6% at the end of August 2026. In a report published on August 20, J.P. Morgan ranked it among the best performing currencies of the year in the region and attributed that strength to the combination of exports, tourism and remittances — not to a discretionary intervention by the BCRD.
The figures support that view. In the first half of the year, exports brought in US$8,746 million; tourism, US$6,716 million; remittances, US$6,219 million; and FDI, US$3,276.5 million. Together, these flows were about US$2,800 million higher than in the same period of 2025. Over that span, the Central Bank bought US$415 million in the foreign exchange market to bolster international reserves, without selling foreign currency on the spot market.
Generating foreign exchange
The BCRD warns that competition for FDI will intensify and investors will become more selective. To preserve the country’s current advantages, the analysis calls for stronger institutions, better human capital, higher productivity, deeper ties between local and foreign companies, and greater diversification of export markets and investment sources.
Gold, tourism and remittances—resilient despite U.S. migration changes—stand out as key sources of foreign currency that the BCRD expects to remain favorable in the second half of the year.
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