The economy of the Dominican Republic, along with that of Costa Rica and other countries in Central Americawill grow above 3.5% in 2026, supported by the domestic consumption and investment.
This is projected by the United Nations Organization (UN) in your report Situation and Prospects of the World Economy 2026, in which he estimated a similar expansion for Guatemala, Honduras, Panama and Paraguay.
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The document anticipates that Latin America and the Caribbean will grow by 2.3% this year and 2.5% in 2027, although with a heterogeneous evolution, conditioned by internal fiscal restrictions and a more adverse external environment.
The UN raised one tenth, to 2.3%, the forecast for 2026 compared to the forecast of the previous report and that of 2025 improved four tenths, up to 2.4%.
According to the United Nations, growth will rebound to 2.5% in 2027, driven by private consumption and a gradual recovery of investment.
The organization notes that the short-term outlook remains, in general, resilient, supported by a firm consumptionbetter financial conditions in 2025 and relatively stable raw material prices.
However, he warns of downside risks derived from a possible slowdown in the main trading partners, a tightening of global financial conditions and high uncertainty, especially due to new tariffs and immigration changes in the United States.
In the Caribbean, excluding Guyana, growth will remain contained at around 1.6% in 2026, slightly below 2025, due to high debt levels and high climate vulnerability.
In contrast, Guyana will continue to record strong growth thanks to the oil boom.
Inflation and employment
The inflation in the region will continue to decelerate, although more slowly. The UN expects 4% in 2026, compared to 4.5% projected in 2025.
Two thirds of the countries registered inflationary declines in 2025, with notable advances in Argentina, Cuba and Suriname.
However, returning the inflation to the target ranges has proven more difficult in economies such as Brazil and Colombia, where the core inflation remains elevated.
He labor market remained relatively stable. In 2025, the unemployment fell or remained low in Brazil, Costa Rica, the Dominican Republic, Paraguay and Uruguay.
In Brazil, the rate of unemployment fell to 5.6% in August 2025, the lowest level in several decades. Even so, countries like Ecuador, Paraguay and Peru have not fully recovered labor participation prior to the pandemic.
The report also highlights that the limited scope for fiscal and monetary maneuver continues to restrict governments’ ability to boost growth.
Although the public debt The regional level fell from 76.1% of gross domestic product (GDP) in 2020 to an estimated 70.7% in 2025, levels remain high and interest costs exceed 5% of regional GDP.
