ECLAC forecasts economy to grow 4% GDP in 2026 and 4.4% in 2027
The most recent report by the Economic Commission for Latin America and the Caribbean (ECLAC) indicates that the Dominican economy will grow by 4% this year and by 2027, by 4.4%.
The country is among the fifteen economies in Latin America and the Caribbean that are projected to grow between 2% and 4%, including El Salvador, Honduras, Ecuador, Peru, Saint Vincent and the Grenadines, Suriname, Dominica, Barbados, Belize, Saint Kitts and Nevis, Colombia, Chile, and Brazil.
The “Economic Survey of Latin America and the Caribbean, 2026. Growth and productivity in a context of high informality: limiting factors and challenges to promote productive formalization in the region” states that in 2026 in terms of growth the country surpasses Mexico (1.3%) and El Salvador (3.9%), however it is below Nicaragua (4.5%) and Panama (4.4%).
The outlook for 2026 and 2027 indicates that Latin America and the Caribbean would face a more complex international environment, characterized by slower global economic growth, heightened geopolitical and financial uncertainty, and greater pressures on international energy markets.
Productivity
The report states that the Verdoorn coefficient (which measures the relationship between growth and productivity) is 0.59 in the formal sector and 0.41 in the informal sector, indicating that economic growth has a positive and significant impact on productivity, especially in the formal sector.
In the informal sector, the Dominican Republic’s coefficient (0.41) is lower than in countries such as Chile (0.52) and Peru (0.55), suggesting that growth has less impact on productivity in the Dominican informal sector.
Low informality
When looking at the informality rate, in 11 of the 15 countries in 2025 there is a drop, with Chile and Costa Rica standing out with a fall of 4.4%, and Brazil and the Dominican Republic with a fall of 2.5%. The total informality rate is 44.6% (median 1993-2025), falling from 44.9% in 1993 to 42.1% in 2025.
