AGP Executive Report

DR Economy: The Central Bank says the Dominican Republic’s Monthly Economic Activity Indicator grew 6.4% year-on-year in June 2026, the strongest monthly expansion of the year, with the April–June quarter up 5.0%. Road Safety: 2026 has been deadly on Dominican roads, with 1,103 traffic deaths and 30,826 injuries reported so far, according to Intrant/OPSEVI. Tourism & Connectivity: Tourism Minister David Collado flags restoring the Russian market as a priority, but notes US and Europe airspace restrictions complicate direct links; authorities are also working to reopen Venezuela connectivity. Trade & Tariffs: The US rolled out a new forced-labor tariff wave on 60 economies, including the Dominican Republic, with a 12.5% rate on DR-bound goods. Logistics for Industry: DP World says it earned ISO 13485 certification in the Dominican Republic to better serve medical device manufacturers, citing the sector’s 31% share of Free Zone exports. Aviation & Business: Arajet and UK travel-tech Arcube will add ancillary services (eSIMs, transfers, fast-track, lounge access, tours) through Arajet’s digital channels. Environment: The Environment Ministry highlights progress protecting the Yaque del Norte River basin via reforestation, soil conservation and the US$90m CReW-RD program. Public Sector: National Assets will run its second 2026 public auction on July 31 with 184 lots.

Economic Pulse: The Central Bank says the Dominican economy grew 6.4% year-on-year in June 2026, the strongest monthly pace of the year, with the April–June quarter up 5.0% and a recovery trend building since late 2025. Road Safety: Traffic crashes remain a major drag on public health, with 1,103 deaths and 30,826 injuries recorded so far in 2026. Trade Shock: The U.S. rolled out new forced-labor Section 301 tariffs on 60 economies, including the Dominican Republic, raising the rate to 12.5% for DR exports to the U.S. and putting pressure on margins and competitiveness. Food Costs Politics: Danilo Medina says families are “stopping eating” as basic food prices rise, arguing the government lacks a clear plan to tackle hunger. Property & Inclusion: President Abinader delivered 1,000 property title certificates in Los Frailes, benefiting over 4,000 people and helping families access formal finance. Tourism Supply Chain: Tourism Minister David Collado called recovery of the Russian market a priority, citing airspace and connectivity constraints. Business Sentiment: People’s Force warns of inflation, tighter cash, and rising Central Bank quasi-fiscal debt weighing on households and small firms.

Forced-Labor Tariffs Hit DR: The U.S. rolled out new Section 301 duties on 60 economies, including the Dominican Republic, with a 12.5% rate taking effect July 24—prompting Santo Domingo to issue a decree blocking imports tied to forced labor. Export Pressure: Dominican exporters warned the higher U.S. tariff could reduce competitiveness and force renegotiations with buyers, even if some textile items were exempt. Trade Compliance Response: U.S. rules also spell out how importers’ exposure depends on origin and product classification, while the DR’s decree sets customs-led procedures to identify and restrict suspect goods. Property Regularization: President Abinader delivered 1,000 property title certificates in Los Frailes, benefiting over 4,000 people and helping families access formal finance. Justice Access Expansion: The Attorney General inaugurated a Comprehensive Justice Access Center in Bahoruco, including units for gender-based and sexual violence victims. Sourcing for Fashion: A University of Delaware study found 76% of surveyed U.S. fashion brands sourced apparel from CAFTA-DR members, with the DR-Central America region gaining share. Business Networking: BNI announced it entered the Dominican Republic as part of continued global expansion. Food Cost Politics: Danilo Medina criticized rising basic food prices, saying families are cutting meals as costs climb.

Penal Code Debate: Lawyer Eduardo Saint-Hilaire says ambiguous articles in the new Penal Code could chill reporting and create a “gag law” effect, especially around defamation and discrimination provisions. Property Rights Push: President Abinader delivered 1,000 property title certificates in Los Frailes, a move aimed at legal security for more than 4,000 people and unlocking access to formal finance. Forced-Labor Tariff Shock: The U.S. launched Section 301 forced-labor tariffs affecting 60 economies, including the Dominican Republic, with rates of 10% to 12.5% depending on each case. Local Trade Response: Santo Domingo issued Decree 502-26 to block imports linked to forced labor, assigning customs as the lead agency and setting procedures to investigate and restrict suspect goods. Export Competitiveness Warning: Dominican exporters warn the tariff jump (from the expiring 10% surcharge to 12.5% for some products) could raise costs and force renegotiations with U.S. buyers. Tourism & Connectivity: Breeze Airways expands its network with 17 new airports in Q3, including more Caribbean and Mexico routes that boost travel options to Punta Cana. Regional Business Growth: BNI reported strong Q2 performance and entry into the Dominican Republic, signaling more networking and referral activity for local entrepreneurs. Port Upgrades: APORDOM launched preventive maintenance for tourist and fishing docks nationwide to improve safety and protect maritime infrastructure.

U.S.-DR Trade Shock: The Trump administration’s new forced-labor Section 301 tariffs (10%–12.5%) could raise costs for Dominican exports and force renegotiations, while Santo Domingo responded with Decree 502-26 to block imports tied to forced labor. Regional Sports & Culture: President Abinader inaugurated the XXV Central American and Caribbean Games in Santo Domingo, with Dominican arts groups spotlighting national identity at the opening ceremony. Tourism & Connectivity: Breeze Airways’ Q3 expansion adds 17 new airports (including new Mexico/Caribbean links like Nassau and more Punta Cana service), and Cathay Pacific plans a Santo Domingo–Hong Kong connection via Madrid. Trade Flows to Cuba: The DR resumed egg exports to Cuba, shipping about 3.9 million eggs in the first batch, supported by a subsidy for maritime transport. Business Growth: BNI reported strong Q2 performance, entering the Dominican Republic as it expands its entrepreneur referral network. Local Economy Pressure: People’s Force warned of inflation, tighter cash liquidity, and rising Central Bank quasi-fiscal debt weighing on households and small firms. Infrastructure for Tourism: APORDOM launched preventive maintenance for tourist and fishing docks to improve safety and protect coastal economic activity.

Forced-Labor Tariffs Hit DR: The U.S. imposed new Section 301 duties on 60 economies, including the Dominican Republic, with a 12.5% tariff taking effect July 24 after the prior Section 122 levy expired. DR Counter-Decree: Hours before the U.S. move, Santo Domingo issued Decree 502-26 empowering Customs to block, investigate, and restrict imports tied to forced labor, including goods already in transit. Egg Exports to Cuba Resume: The DR restarted shipments to Cuba—about 3.9 million eggs in the first batch, targeting 13 million+ per month—after a new regulation subsidized maritime transport to offset higher logistics costs. CARICOM Push: A new argument is making the case for the DR to join CARICOM to deepen regional market access and attract private investment. Competition Law Update: ProCompetencia urged modernizing the country’s antitrust framework to better handle digital platforms and cross-border business. Tourism & Ports: APORDOM launched preventive maintenance for tourist and fishing docks to improve safety and protect coastal economic activity. BNI Expansion: BNI reported strong Q2 growth and entered the Dominican Republic as part of its Latin America expansion.

Tariff Shock for DR Exports: The U.S. rolled out Section 301 forced-labor tariffs, hitting the Dominican Republic with a 12.5% duty on covered imports, effective Friday—prompting Santo Domingo to respond with Decree 502-26 giving Customs power to block, investigate, and restrict forced-labor-linked goods, including shipments already in ports or in transit. Tourism & Connectivity Push: APORDOM launched a nationwide preventive maintenance program for tourist and fishing docks to boost safety and coastal economic activity, while Cathay Pacific added Santo Domingo to its codeshare network via Madrid, linking the capital to Hong Kong. Business & Competition Policy: ProCompetencia urged modernizing the country’s competition law for the digital economy, and Airbnb backed the Dominican vacation rental registry, asking for rules that distinguish hosts from traditional hotels. Infrastructure Financing: The Chamber of Deputies approved two international loans totaling over US$465M for road safety and Yuna River basin management, now headed to the Senate. Aviation & Corporate Moves: FL Technics named Saulius Bajarunas CEO effective Sept. 1, and the DR is also positioning itself for major sports-driven tourism with the Central American and Caribbean Games spotlight.

US Tariffs Hit DR: The Trump administration confirmed a new 12.5% tariff on Dominican Republic imports starting Friday, replacing the expiring 10% universal levy; the measure is tied to forced-labor import rules under Section 301, with an in-transit exception for goods already loaded before the cutoff. Macroeconomy Update: The Central Bank reported Dominican economy growth of 6.4% year-on-year in June, the strongest monthly expansion so far in 2026, led by mining, construction, free-zone manufacturing, and services. Trade & Exports: DR resumed egg exports to Cuba, sending 12 containers with about 3.9 million eggs after a suspension linked to logistics under the US blockade. Aviation & Connectivity: CLAC’s executive meeting opened in Santo Domingo, with Dominican officials pushing open skies, codeshares, and stronger regional air links to support tourism growth. Courts & Compliance: A Dominican court ordered the PGR to pay over RD$7.5 million for failing to meet a judicial order to return seized assets in a fraud and traffic-light sabotage case. Road Safety: Intrant reiterated its road safety push at the UN, including helmet regulation and a “One Motorcycle, One Helmet” initiative.

Youth Sports & Tourism: More than 120 youth baseball teams from Puerto Rico, the U.S. mainland, the Dominican Republic, the U.S. Virgin Islands and Colombia will compete in the 2026 Caribbean World Series starting Friday in Cataño, a regional event expected to bring visitors and boost local spending. Free Zones 4.0: Adozona and CNZFE, with Unicaribe, pushed the next phase of Dominican free zones toward “Free Zones 4.0,” stressing innovation, compliance, logistics and training for higher-value industries. Egg Exports: The Dominican Republic resumed egg shipments to Cuba, sending 12 containers totaling about 3.9 million eggs, with plans for exports twice a month. Legal/Politics: The TSE ruled it can’t hear a challenge to JCE rules on pollster registration and sent the case to the Constitutional Court. Energy & Climate Risk: ADIE warned climate change could cost the economy up to 1% of GDP annually (and far more in extremes), urging stronger electricity-system resilience. FX Watch: Central Bank reference rates showed the dollar and euro edging slightly in the latest daily quotes. Water Supply: CAASD announced temporary low-pressure outages in parts of Greater Santo Domingo due to reduced river flows from prolonged dry conditions. Trade Policy Shock: The U.S. is preparing new tariffs (up to 12.5%) targeting forced-labor-linked exports, including the Dominican Republic. Connectivity: Telxius launched a new PoP at the NAP Caribe data center in Santo Domingo, reinforcing the DR’s push as a regional connectivity hub. Business Investment: Abinader inaugurated Porto Town Center in Arroyo Hondo, a mixed-use plaza expected to create 350 direct and 100 indirect jobs. Governance: Abinader created a citizen oversight commission for the DO Sostenible Trust to monitor solid-waste project execution and spending.

Education Reform: President Abinader says education will become a State policy to prepare Dominicans for AI, automation and new tech, after a national consultation drew 7,000+ participants. Business & Jobs: Abinader inaugurated Porto Town Center in Arroyo Hondo, a 7,200 m² mixed-use plaza with 71 spaces and expected 350+ direct jobs. Productivity Agenda: Government announced the first Meta RD 2036 Forum (Aug 5) to push reforms aimed at doubling the economy by 2036 and creating 1.7M jobs. Governance & Waste: Abinader created a Citizen Oversight Commission for the DO Sostenible Trust to monitor solid-waste projects’ physical and financial execution. Crime & Justice: Senate approved urgent Penal Code amendments, including changes on corporate liability, public integrity and cybercrime. Cross-border Enforcement: DR and Chile signed an agreement to set up a Joint Investigation Team to target trafficking, migrant smuggling, money laundering and corruption. Connectivity: Telxius launched a new PoP at NAP Caribe in Santo Domingo, reinforcing the DR as a regional connectivity hub. Currency Watch: Central Bank reference rates: dollar RD$57.22 buy / RD$59.98 sell; euro RD$65.61 buy / RD$69.71 sell.

Productivity & Jobs Push: The Dominican government announced the first Meta RD 2036 Forum on Aug. 5 to speed up reforms aimed at doubling the economy by 2036, targeting higher productivity, innovation, human capital, and about 1.7 million new jobs. Education for the AI Era: President Abinader said education transformation will become a State policy, with the system shifting toward skills for AI, automation, and future work. Tech Skills Partnership: MESCYT signed an agreement with Casio to train teachers and students in AI, robotics, and STEM for the digital economy. Tourism Through Sports: Asonahores expects the Santo Domingo 2026 Central American and Caribbean Games (July 24–Aug. 8) to boost tourism demand across the economy. Public Security & Justice: DR and Chile signed a pact to create a joint investigation team to fight human trafficking, migrant smuggling, and money laundering. Metro Safety Incident: Santo Domingo Metro temporarily suspended service after a person entered the tracks at Juan Pablo Duarte station. FX Watch: Central Bank reference rates showed the dollar at RD$57.22 buy / RD$59.98 sell and the euro at RD$65.61 buy / RD$69.71 sell. Connectivity: Telxius launched a new PoP at NAP Caribe in Santo Domingo to strengthen regional connectivity. Real Estate Business: eXp Realty will hold its first Latin America eXpcon in Spanish in Medellín in April 2027, listing the DR as one of its CALA markets.

Budget Watch: The Dominican government submitted a bill to amend the 2026 General State Budget, projecting RD$1.383T in revenue and RD$1.785T in spending, with a RD$280.6B deficit, while shifting money toward priority institutions and protecting vulnerable sectors. Tourism & Sports Economy: Asonahores says the XXV Central American and Caribbean Games Santo Domingo 2026 (July 24–Aug 8) will boost sports tourism and ripple across hotels, transport, commerce and entertainment. Public Works & Games Readiness: The government says infrastructure and event organization investment for the Games is about RD$9B, with security and logistics ramped up for thousands of athletes and visitors. Transport Safety: The Santo Domingo Metro reported a person entered the tracks at Juan Pablo Duarte station, triggering emergency protocol and an immediate platform evacuation. Migration Enforcement: DGM opened a preliminary investigation into two immigration agents accused of improper transport of an irregular Haitian on a motorcycle in San Juan de la Maguana. Air Connectivity: WestJet announced a new Winnipeg–Punta Cana nonstop route for winter 2026–27, starting Nov. 28, aiming to capture growing Canadian demand for the Caribbean. Food Security Milestone: The DR was removed from FAO’s hunger map after undernourishment fell below 2.5%, with Abinader pointing to programs like school feeding and Aliméntate. Real Estate Business: eXp Realty will hold its first eXpcon in Latin America in Medellín in Spanish (Apr 6–8, 2027), noting the DR as one of its CALA markets.

Budget Watch: The Dominican government has submitted to the Senate a bill to amend the 2026 General State Budget, projecting RD$1.383T in revenue and RD$1.785T in spending (a RD$280.6B deficit), with RD$40.98B more for priority institutions and RD$17.7B in reallocations—while trimming Tourism, Energy & Mines and Public Debt. Food Security Milestone: The FAO removed the Dominican Republic from its hunger map after undernourishment fell below 2.5%, with Abinader pointing to programs like school feeding (2.1M students daily) and Aliméntate (1.49M households). MSME Lending: Banco Popular says it holds RD$157.31B in loans to micro, small and medium-sized enterprises as of April 2026—40.8% of its commercial portfolio—supporting a sector that drives 32% of GDP and most jobs. FX Update: Central Bank reference rates show the dollar at RD$57.29 buy / RD$60.14 sell, with the euro at RD$65.75 buy / RD$69.65 sell. Tourism & Sustainability: Piñero launched the third “Los + Ecoístas” awards, expanding categories to include content creators and media promoting sustainability. Security Cooperation: DR urged faster full implementation of Haiti’s Gang Suppression Force renewal as the UN warns Haiti risks becoming an organized crime state.

MSME Credit Push: Banco Popular says it holds RD$157.31B in loans to micro, small and medium-sized enterprises, making up 40.8% of its commercial portfolio (SIMBAD/Superintendency of Banks), with MSME lending up 4.1% year-on-year. Travel Tech & Ancillaries: Arajet is partnering with Arcube to sell add-on services digitally (eSIMs, transfers, fast-track, lounge access, tours, parking) via “Manage My Booking” and pre-departure emails. Tourism & Local Economy: Los Cacaos (San Cristóbal) is leaning into ecotourism after its 100th anniversary, with the senator citing nature assets plus upgrades in roads, health and entrepreneurship support. Sports Tourism Calendar: The Bayahibe 10K returns Sept. 6 with 600+ runners, aiming to boost hotel stays and spending in La Romana/Bayahibe. Blue Economy Cooperation: “Blue Hispaniola” officially launched as a three-year Haiti–DR project to protect marine ecosystems and support coastal livelihoods through a blue-economy corridor. Regional Governance: Santiago and Curitiba agreed to a smart-municipality cooperation agenda covering urban planning, mobility, sustainability, innovation and public management. Cross-border Security Context: DR’s foreign minister urged faster deployment and full implementation of Haiti security measures, while stressing support for Haiti’s institutions and elections. Digital Piracy Crackdown: U.S. DOJ says it seized 1,000+ domains used to illegally stream World Cup 2026 matches, including 256 in the Dominican Republic.

Haiti Security Push: Foreign Minister Roberto Álvarez urged the UN Security Council to renew the Gang Suppression Force mandate and the UN support office in Haiti, calling for faster deployment, stronger sanctions against financiers and arms traffickers, and deeper support for Haiti’s police and justice system. Blue Economy & Marine Protection: The binational “Blue Hispaniola” project was officially launched, aiming to build a blue-economy corridor to support sustainable fishing, coastal ecosystem preservation, and cross-border livelihoods over three years. Tourism & Local Business: The Bayahibe 10K returns Sept. 6 with 600+ runners, boosting La Romana’s hotels and dining; Expo Amaprosan 2026 also wrapped with record attendance and 120+ companies in Santiago. Agriculture Exports: The Agriculture Ministry tightened fruit-fly controls to keep mango exports flowing to the US and Europe, including trap inspections and upgraded monitoring systems. Energy & Industry: The Energy Ministry said larimar exports won’t cut supply for Dominican artisans, noting most production stays local and surplus is exported; it also announced a direct sales fair Aug. 21. Infrastructure: President Abinader inaugurated the Plaza de la Bandera tunnel to ease traffic and improve southern connectivity. Finance & Markets: The Central Bank set the euro reference rates for July 20, with slight movements in purchase/sale levels. Trade & Logistics: DP World’s Air Cargo Hub Punta Cana coordinated two relief flights delivering 27+ tons of humanitarian aid to earthquake-affected communities in Venezuela.

Banking & Regulation: Switzerland is set to tighten oversight after Credit Suisse’s collapse, with proposals that would let FINMA fine and publicly name banks—though lawmakers are already pushing back. Legal & Governance: Dominican Liberation Party leader Johnny Pujols says the proposed Penal Code reform has ambiguous articles that could undermine legal certainty and freedom of expression. Health Aid & Diplomacy: The Dominican Republic sent Venezuela 1,749 vaccines plus syringes, medicines, biosafety boxes, oxygen masks, and baby food, as officials highlight sisterly ties. Agribusiness Exports: The Agriculture Ministry rolled out new phytosanitary steps to boost mango exports to Europe and the US, including tighter fruit-fly monitoring and trap review. Energy & Consumer Safety: A DR energy official warns that changing LPG mixtures to 90% propane could raise explosion risks due to cylinder condition and higher pressure. Local Transport: Los Alcarrizos cable car Line 2 resumes Monday after a scheduled shutdown, with free OMSA bus alternatives running the same hours. Finance & Banking Recognition: Banco Popular was named Best Bank in the Dominican Republic again by Euromoney, adding more awards. Tourism & Air Connectivity: Southwest is adding Saturday-only Caribbean routes, including a new nonstop from Columbus to Punta Cana, while Punta Cana flight data shows key hubs like San Juan, Panama City, Miami, and New York driving demand. Trade Policy: The US CITA decision affects CAFTA-DR apparel sourcing by treating certain polyester/spandex fabric as not commercially available in timely quantities. Public Safety: US Customs says it seized 22 kg of cocaine hydrochloride shipped from Santo Domingo to Delhi, targeting World Cup-related cargo routes. Business & Real Estate: Banreservas backs Cacao Green Ecoluxury, a new mountain real estate development model focused on investment protection, community well-being, and environmental conservation.