BLP’s summary of the most important regional news and opportunities offers an overview of Central America’s economic, social, and political landscape in just one click.
Costa Rica leads the way in adopting artificial intelligence in Latin America
Costa Rica is at the technological forefront of the region, with the highest level of generative artificial intelligence adoption in Latin America, according to the Microsoft AI Economy Institute’s Global AI Adoption Report. This competitive advantage opens up concrete opportunities to accelerate economic growth, improve productivity, and strengthen strategic sectors such as finance, healthcare, education, and renewable energy. This leadership reflects the maturity of Costa Rica’s technology ecosystem and the country’s ability to adopt cutting-edge tools at the business and production levels. Microsoft highlighted the importance of maintaining collaboration among the public sector, industry, and academia to translate this advantage into concrete economic development projects. This positioning solidifies Costa Rica’s status as the preferred destination in the Americas for global technology companies seeking to expand their operations.
Five years in the OECD have strengthened Costa Rica’s competitiveness and investment appeal
Five years after joining the OECD, Costa Rica has made significant progress in economic stability, competitiveness, and institutional strengthening, according to experts who participated in a webinar organized by LEAD University and the Council for the Promotion of Competitiveness. Among the most notable achievements are the reduction of the fiscal deficit, the implementation of the fiscal rule, and strong export performance with a greater presence in international markets and diversification toward high-value-added goods and services. The country actively participates in more than 80% of the organization’s committees and working groups, establishing itself as a key player in shaping international public policy. Sectors such as medical devices and business services have emerged as pillars of Costa Rica’s competitiveness in global markets. This assessment reaffirms Costa Rica as an economy with solid institutions and favorable conditions to continue attracting high-value-added investment.
Diplomatic ties with India open up new opportunities in technology and medical devices in Costa Rica
The opening of a permanent embassy in India marks the start of a Costa Rican strategy to attract investment, diversify exports, and strengthen strategic sectors such as technology, medical devices, artificial intelligence, and digital services. The medical device industry, one of the pillars of the country’s exports, finds in India a rapidly expanding market, driven by urbanization and the growing purchasing power of its population. PROCOMER and specialized firms have identified opportunities for complementarity in software, outsourcing, biotechnology, and semiconductors—areas where both countries possess strategic strengths. This rapprochement takes on special significance in the context of trade diversification in response to U.S. tariff policies. With this diplomatic opening, Costa Rica expands its access to one of the world’s fastest-growing economies and reinforces its position as a global strategic partner.
Costa Rica’s economy maintains sustained growth driven by high-value-added sectors
The Costa Rican economy posted positive year-over-year growth in April 2026, with four strategic sectors accounting for nearly half of the country’s economic dynamism, according to the Central Bank of Costa Rica. Professional and administrative services led the performance, followed by construction, education, health services, and manufacturing, reflecting a diversified and resilient economic base. This trend demonstrates that Costa Rica’s growth does not depend on a single driver, but rather on a balanced productive structure focused on sectors with higher productivity. The consolidation of these sectors strengthens the country’s ability to generate quality jobs and attract specialized investment on a sustained basis. This positive performance reaffirms Costa Rica’s position as one of the most stable and dynamic economies in the Central American region.
Price stability and a predictable monetary policy foster a favorable investment climate in Costa Rica
Costa Rica maintains an exceptionally stable macroeconomic environment, with year-over-year inflation having remained below the Central Bank’s tolerance range for more than three consecutive years, reflecting sustained price control that is favorable for investment and consumption. The Central Bank projects a gradual and orderly convergence of inflation toward its target, a process supported by a competitive monetary policy rate that could be reduced even further if external conditions permit. Central Bank officials noted that, even in the face of international price pressures, an inflationary shock is not anticipated, thanks to the country’s solid economic fundamentals. This framework supports long-term business planning and strengthens investor confidence in the Costa Rican economy. Macroeconomic stability cements Costa Rica’s position as a predictable and attractive environment for the development of domestic and international investment projects.
El Salvador is driving rapid economic growth and ranks among the region’s leaders
El Salvador’s economic activity posted solid growth in the first quarter of 2026, placing the country among the three most dynamic economies in Central America, according to the Central American Monetary Council. The professional and technical services, trade, transportation, and financial services sectors led the expansion, demonstrating an economy with diversified, high-value-added growth drivers. First-quarter performance far exceeded the figures for the same period last year, reflecting a sustained acceleration of productive activity across multiple sectors. Real estate and manufacturing also performed well, further diversifying El Salvador’s economic base. This performance reaffirms El Salvador’s status as one of the region’s most dynamic economies and an attractive destination for investment in services, industry, and real estate development.
San Salvador is experiencing its biggest real estate boom yet, with the goal of becoming a regional leader
The San Salvador Metropolitan Area is experiencing the largest residential construction boom in its recent history, with billions of dollars in approved projects and dozens of high-rises currently under construction, according to the Metropolitan Area Planning Office (OPAMSS). The construction sector has established itself as the main driver of growth in the Salvadoran economy, generating more than 167,000 jobs and a significant multiplier effect in sectors such as architecture, engineering, and legal services. Developments range from luxury towers in San Benito to mixed-use projects in La Libertad Este, Santa Tecla, and Colonia Escalón, attracting both local developers and regional Central American groups. The composition of the investment reflects an economy in the midst of diversification, with residential, commercial, logistics, and tourism projects transforming the capital’s urban landscape. This real estate momentum cements San Salvador’s position as one of the most attractive markets for real estate and construction investment in the entire region.
Public investment reaches historic levels and strengthens the country’s infrastructure
In the first four months of 2026, El Salvador recorded the highest level of public investment in the past six years, with growth of more than 30% compared to the same period the previous year, according to the Ministry of Finance. The current investment program exceeds 2,700 million dollars, distributed across nearly 250 projects in more than 40 government institutions, with an emphasis on road infrastructure, education, and digital connectivity. Among the most significant projects are municipal infrastructure works, efforts to bridge the digital divide in schools, the construction of the submarine cable, and progress on the Pacific Airport. Moody’s recognized El Salvador’s ability to increase public investment while reducing current spending as part of a fiscal adjustment agreed upon with the IMF as exceptional. This performance reinforces the strength of the country’s fiscal management and creates favorable conditions for attracting complementary private investment in infrastructure and services.
Solid economic fundamentals and expanding sectors continue to make the country attractive to investors
After posting its best economic performance in nearly two decades in 2025, El Salvador continues to solidify a growth narrative that is increasingly capturing the attention of regional and international investors, according to an analysis by Grupo Cibest. Construction, tourism, and renewable energy are emerging as the major drivers of economic dynamism, backed by an energy investment program to strengthen the country’s renewable energy mix in the coming years. The sustained improvement in security conditions has significantly expanded the pool of viable projects, repositioning the country in the eyes of international markets. On the fiscal front, the deficit continues to narrow in line with the agreement with the IMF, while remittances maintain a favorable growth outlook for domestic consumption. With solid macroeconomic fundamentals and a transformed narrative, El Salvador is cementing its appeal as an investment destination in the region.
Cruise ship arrivals surge, solidifying the country’s international standing as a tourist destination
El Salvador experienced a remarkable recovery in cruise tourism during 2025, with explosive growth in the number of international cruise ships and passengers compared to the previous year, according to statistics from the Secretariat for Central American Tourism Integration. The ships that visited the country carried thousands of cruise passengers who toured iconic destinations such as the Joya de Cerén and San Andrés archaeological parks, the Historic Center of San Salvador, and the Santa Ana volcano. This recovery is part of a positive regional trend, with Central America and the Dominican Republic together welcoming millions of cruise passengers by the end of the year. This growth reflects the impact of improvements in security, infrastructure, and international promotion, which have repositioned the country within global tourism circuits. The boom in cruise tourism opens up concrete investment opportunities in port infrastructure, tourism services, and the development of new attractions for the international market.
Guatemala consolidates its leadership in exports with sustained growth in the first four months
Guatemala recorded positive export growth during the first four months of 2026, with Central America emerging for the first time as its main trading partner, surpassing the United States, according to figures from the Bank of Guatemala. Coffee, apparel, and sugar led the export portfolio, demonstrating the diversification and competitiveness of domestic production in international markets. This momentum consolidates Guatemala’s role as the region’s economic engine and reflects the strength of its agro-industrial and manufacturing supply chains. Export performance is supported by trade relations with multiple markets, including the Eurozone, Mexico, and Canada, which reduces dependence on a single destination and strengthens the economy’s resilience. The sustained growth in exports reinforces Guatemala’s appeal for investment in the agro-industrial, manufacturing, and trade logistics sectors.
Guatemala is strengthening its connectivity with the opening of the Xóchi Highway, also known as the Corredor de las Flores
Guatemala has opened the Xóchi Highway, part of the Corredor de las Flores, a modern highway spanning more than 30 kilometers that will improve mobility and competitiveness along the southern coast. The project connects key agricultural, agro-industrial, and tourist areas in Suchitepéquez and Retalhuleu, facilitating the transport of people and goods. The project was developed with private investment and created more than 4,000 jobs during construction, having a direct impact on surrounding communities. In addition to reducing travel times, it will contribute to greater logistical efficiency and the strengthening of regional economic activity. The new infrastructure serves as an example of collaboration between domestic and international investors to promote Guatemala’s sustainable development.
Guatemala strengthens its legal framework with a new comprehensive anti-money laundering law to attract long-term investment
Guatemala has enacted the Comprehensive Law for the Prevention and Suppression of Money Laundering and Terrorist Financing, one of the most significant regulatory changes in recent years, designed to strengthen the integrity of the financial system and improve conditions for formal investment. The legislation, presented by President Bernardo Arévalo as a tool to combat corruption and create new economic opportunities, will take effect in three months, during which companies and financial institutions must adapt to the new requirements. A more robust anti-money laundering framework strengthens the credibility of the economic system, improves integration with international markets, and creates a more competitive environment for companies operating within the law. The law expands the tools for prevention, detection, and enforcement, and strengthens institutional capacity to monitor suspicious financial transactions, aligning Guatemala with international standards. With this reform, Guatemala consolidates its position as a reliable and transparent jurisdiction, with increasingly favorable conditions for responsible, long-term investment.
Honduras receives support from the IDB to strengthen its fiscal sustainability and business environment
The Inter-American Development Bank approved a programmatic loan to support structural reforms that will strengthen Honduras’ fiscal sustainability, in a coordinated effort with the IMF and complementary programs from the World Bank and CAF. The financing aims to reduce public debt, strengthen the fiscal balance, streamline tax incentives, and improve the quality of public investment, creating a more predictable and competitive environment for businesses. The operation will also promote improvements in public procurement, treasury management, and transparency in tax incentives, thereby strengthening the country’s institutional framework. This is the first of two technically linked loans designed to reinforce the regulatory and institutional capacity of the Ministry of Finance in the face of external shocks. With this multilateral support, Honduras is consolidating its reform trajectory and creating more favorable conditions for private investment and sustained economic growth.
Honduras: economic confidence reaches its highest level in six years and points to sustained expansion
Confidence in the performance of the Honduran economy reached its highest level for May in the past six years in May 2026, remaining in positive expansion territory for the fifth consecutive month, according to the Central Bank of Honduras’ Survey of Macroeconomic Analysts’ Expectations. Analysts’ optimism is underpinned by macroeconomic stability, robust domestic consumption driven by remittances, growth in bank liquidity, and favorable expectations regarding the new government’s investment policies. The recent technical agreement with the IMF was also highlighted as a factor that will strengthen international reserves and the confidence of economic agents in the medium term. Projections point to solid economic growth for both 2026 and 2027, supported by domestic consumption, remittances, and public and private investment. This scenario consolidates Honduras’ position as an economy experiencing sustained expansion, with increasingly favorable conditions for new investments.
Multilateral organizations support the modernization of Honduras’s electricity sector
The World Bank Group, the IDB, the BCIE, and the CAF expressed their support for the reforms being promoted by the Honduran government to modernize its electricity system and overcome a structural crisis that is affecting the country’s competitiveness. The organizations highlighted the importance of strengthening the sector’s institutional framework, promoting transparent and technically sound decision-making, and expanding the transmission and distribution network to improve the quality and reliability of electricity service. The four multilateral institutions agree that diversifying the energy mix and moving toward more sustainable, efficient, and modern management of the national energy system are top priorities. The support of these leading institutions reinforces the credibility of the reform process and sends a positive signal to the markets regarding the country’s commitment to transparency and good governance. The modernization of the electricity sector opens up significant opportunities for private investment in power generation, transmission, and distribution in Honduras.
Exports continue on a positive trajectory, driven by coffee, bananas, and high-value products in Honduras
Honduras’s goods exports continued on a positive trajectory during the first four months of 2026, with coffee and bananas leading the way thanks to higher volumes and better international prices, according to the Central Bank of Honduras. Coffee solidified its position as the country’s leading export product, benefiting from higher yields, favorable weather conditions, and the adoption of best agricultural practices in the sector. Bananas, recycled products, and gold also showed significant growth, reflecting the country’s ability to capitalize on both global demand and improvements in domestic productivity. These results demonstrate the strength and diversification of Honduras’ export portfolio, with products that compete favorably in high-value markets such as the United States, Germany, and Belgium. This export momentum consolidates Honduras’ position as an economy with strategic sectors of high potential and a growing presence in international markets.
Nicaragua maintains price stability, which supports consumption and the investment climate
In May 2026, Nicaragua recorded virtually zero monthly inflation, reflecting a highly stable price environment that supports household purchasing power and business planning, according to the National Institute for Development Information (INIDE). Year-over-year inflation remains at moderate and controlled levels, while core inflation also indicates that structural price pressures remain contained. Price declines were concentrated in food, restaurants, and lodging sectors, directly impacting the population’s cost of living and the competitiveness of the tourism sector. This trend aligns with the monetary policy of the Central Bank of Nicaragua, which maintains its benchmark rate at a level that supports credit growth and productive activity. The environment of low inflation and price stability reinforces Nicaragua’s position as a destination with predictable and favorable macroeconomic conditions for investment.
Remittances to the Northern Triangle continue to grow robustly and strengthen the region’s economies
El Salvador, Guatemala, and Honduras collectively received more than 15 billion dollars in family remittances during the first four months of 2026, representing growth of over 10% compared to the same period the previous year, according to the Central American Monetary Council and the International Organization for Migration. Guatemala accounted for the largest share of the three countries’ foreign currency, followed by Honduras, which recorded the highest percentage increase. El Salvador also showed positive growth, bolstering the income of recipient households. In 2025, remittances accounted for a significant share of the three countries’ GDP, establishing them as a fundamental pillar of macroeconomic stability and domestic consumption in the region. These flows generate a multiplier effect on consumption, housing construction, and local investment, boosting key sectors of the Central American economies. The robust growth in remittances reaffirms the importance of the Central American diaspora as a regional economic pillar and a stable source of foreign exchange, strengthening the resilience of these economies.
Insight
Guatemala: New Anti-Money Laundering and Counter-Terrorist Financing Law
The Guatemalan Congress approved a new Comprehensive Law for the Prevention and Suppression of Money Laundering and Other Assets and the Financing of Terrorism, which, for the first time, consolidates into a single legal framework the regulation of money laundering, terrorist financing, and the financing of the proliferation of weapons of mass destruction. Its enactment responds to the need to align Guatemala’s regulatory framework with the standards of the Financial Action Task Force (FATF) and to prevent Guatemala from being included on the grey list of non-cooperative jurisdictions. The law expands the scope of reporting entities, incorporates a risk-based approach, establishes new compliance obligations, and strengthens both the administrative and criminal sanctions regime. The law will enter into force three months after its publication in the Official Gazette.
Honduras: Corporate acquisitions and merger control in Honduras: When is competition authorization required?
In Honduras, notifying an economic concentration before the CDPC is not exclusive to large corporate mergers. Share acquisitions, changes of control and asset groupings may also require prior authorization, regardless of the size of the parties involved. Skipping this step can lead to fines, regulatory investigations and delays in closing, or affect the validity of the transaction altogether. In this article, we break down when competition authorization is required in Honduras and why it should be assessed from the outset of any acquisition.
Economic Index
| Country | Exchange Rate (USD) | Basic Passive Rate | Monetary Policy Rate | S&P | Moody’s | Fitch | Inflation |
|---|---|---|---|---|---|---|---|
| Costa Rica | 457,20 | 3,65% | 3,25% | BB | Ba2 | BB | -0,97% |
| El Salvador | 8,75 | 4,75% | N/A | B- | B3 | B- | 2,53% |
| Guatemala | 7,61 | 4,74% | 3,50% | BB+ | Ba1 | BB+ | 2,86% |
| Honduras | 26,69 | 7,28% | 5,75% | BB- | B1 | N/A | 6,09% |
| Nicaragua | 36,62 | 1,45% | 5,75% | B+ | B2 | B | 3,99% |
19/06/2026 | Source: secmca.org
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