BLP’s summary of the most important regional news and opportunities offers an overview of the economic, social, and political landscape of Central America at just a click away.
Costa Rica Joins Pax Silica and Strengthens its Position in the Global Semiconductor Industry
Costa Rica has become a member of Pax Silica, the international initiative led by the United States to strengthen innovation ecosystems and develop critical technologies such as semiconductors and artificial intelligence, marking a milestone in the national strategy for integration into high-impact global value chains. The membership, formalized in Washington, D.C., with the participation of representatives from the Ministry of Foreign Affairs, the Ministry of Foreign Affairs (COMEX), and the Ministry of Science, Innovation, Technology and Telecommunications (MICITT), reaffirms Costa Rica’s role as a strategic and reliable partner of the United States in the development of emerging technologies of global geopolitical and economic importance. The platform promotes coordination among allied countries to ensure secure supply chains, foster joint research, and promote quality standards that strengthen international competitiveness, an area in which Costa Rica already has a recognized track record. Authorities emphasized that membership opens new opportunities for international cooperation, the creation of high-quality jobs, and the development of specialized talent in areas that will define the economy of the future. This addition consolidates Costa Rica as a relevant player in the global semiconductor industry and reinforces its attractiveness for investment in advanced, high-value-added technologies.
The New York Times highlights Costa Rica among the world’s best destinations to live and invest
The renowned American newspaper, The New York Times, ranked Costa Rica among the top five destinations for U.S. citizens to obtain residency through investment programs, emphasizing its quality of life, favorable tax environment, and the flexibility of its immigration categories for retirees and investors. The article highlights the Nicoya Peninsula as part of the so-called Blue Zones, regions recognized worldwide for the longevity of their inhabitants, which adds a unique appeal to Costa Rica compared to other global options. Among the available residency categories are investor, retiree, and rentier, options that offer competitive access conditions compared to other similar programs that have tightened their requirements in recent years. The publication places Costa Rica alongside Greece, Panama, and Portugal, economies internationally recognized for maintaining attractive residency programs for foreigners with investment capacity. This international recognition reinforces Costa Rica’s position as one of the world’s most attractive destinations to live, invest, and retire, opening up opportunities in real estate, residential tourism, and services for foreigners.
Costa Rica is consolidating its international reputation as one of its most valuable assets for attracting investment
Costa Rica has positioned itself as one of the economies with the best international reputation in Latin America, surpassing the region’s leading economies in the vast majority of attributes evaluated by RepCore® Nations 2026, in a context where the average perception of the world’s major economies registered a general decline. The attributes that explain this positioning include sustainability, quality of life, institutional strength, ethics, and responsibility—factors that are increasingly valued by multinational companies and investment funds seeking destinations with operational stability and predictable regulatory frameworks. The country’s positive reputation has a tangible and measurable economic impact, complementing other factors that have boosted foreign investment, such as the free trade zone regime, democratic stability, legal security, and specialization in advanced manufacturing and corporate services. The challenge ahead is to consolidate an equally strong image as an innovation and technology hub to attract investment in knowledge-intensive industries that will further enhance the complexity of the Costa Rican economy. In a more competitive world, Costa Rica enters this new stage with an advantage that is difficult to replicate: trust as a strategic asset to attract global capital, talent, and opportunities.
Juan Santamaría Airport Begins Strategic Expansion to Strengthen Capacity and Connectivity
Juan Santamaría International Airport has begun expansion work on its international terminal, an initiative framed within the 2023-2042 Master Plan. This plan aims to expand the operational capacity of Costa Rica’s main airport and prepare it for the sustained growth of air traffic in the coming years. The project includes expanding the departures area with new construction and remodeling of the existing building, focusing on increasing processing capacity for security and immigration, with infrastructure ready for the incorporation of advanced technologies such as e-gates. Benefits include greater capacity to handle passengers during peak hours, reduced congestion points, and optimized flow within the terminal, offering a more streamlined and efficient travel experience. The project is being carried out in coordination with the Ministry of Public Works and Transportation, as part of a joint strategy to modernize the country’s airport infrastructure. This investment reinforces Costa Rica’s commitment to the continuous improvement of its air connectivity and consolidates Juan Santamaría Airport as a competitive and modern gateway for international visitors and investors.
Costa Rica guarantees the continued operation of Puerto Caldera while its modernization process progresses
The Costa Rican Institute of Pacific Ports (INCOP) extended the concession for Puerto Caldera until August 2027, ensuring the uninterrupted operation of the general cargo terminal and the bulk cargo terminal while the bidding process to select the new concessionaire responsible for operating and modernizing the port is completed. This measure guarantees the continuity of port services, protects the country’s logistics chain, and prevents disruptions to trade during the transition to a new, more efficient operating model. INCOP clarified that the extension does not modify the current terms of the concession and that the defined period corresponds to the maximum time required to complete the legal, administrative, and transition phases for the new operator. The modernization process for Puerto Caldera represents a strategic opportunity to strengthen the logistics infrastructure of Costa Rica’s Pacific coast and improve the competitiveness of the country’s foreign trade. This orderly and transparent management reflects Costa Rica’s commitment to the continuity of its critical infrastructure services and the sustained progress of its port modernization projects.
El Salvador Records Exceptional Economic Growth, More Than Doubling Its Historical Average
El Salvador’s economy delivered an outstanding performance in the first quarter of 2026, with growth more than doubling the average rate recorded during the first quarters of the past seventeen years. According to the Central Reserve Bank of El Salvador, this performance was driven by strong domestic fundamentals and increased momentum in foreign trade. Growth was broad-based and diversified, with the vast majority of economic sectors posting positive results. Construction, mining, transportation, tourism, and professional services led the expansion, reflecting a robust, multisector economic upswing. Public and private investment played a central role in supporting economic activity, while tourism continued to emerge as a key growth driver. More than one million international visitors boosted demand for goods and services across the country, further strengthening domestic economic activity. Family remittances also supported domestic demand, stimulating sectors such as retail, restaurants, transportation, and entertainment. This exceptional performance reinforces El Salvador’s position as one of the region’s fastest-growing economies and strengthens its appeal as an investment destination for high-growth, value-added industries.
El Salvador joins Pax Silica, opening new opportunities in the global digital and technological economy
El Salvador has officially joined Pax Silica, the international initiative led by the United States to strengthen supply chains for artificial intelligence, semiconductors, and technological infrastructure, positioning itself as a reliable partner in a network of allied countries seeking to build a secure and competitive technological ecosystem. This membership comes at a time when the country is advancing multiple artificial intelligence initiatives, including tools for the education system, digital health platforms, and synthetic data projects aimed at training AI models adapted to the Salvadoran context. Membership opens a framework for international cooperation to promote investments in digital infrastructure, data centers, telecommunications networks, and advanced manufacturing—sectors that represent concrete opportunities for economic development and the creation of specialized jobs. Although the declaration does not include immediate projects, it establishes the foundation for El Salvador to position itself as an attractive destination for future investments related to technology and digital infrastructure in the region. This addition reinforces the country’s strategy to become a hub for technological innovation and consolidates its international projection as an open economy oriented towards the sectors with the highest global growth.
El Salvador consolidates its leadership in solar energy and advances toward a predominantly renewable electricity grid
Photovoltaic energy became the technology with the largest installed capacity in El Salvador’s electrical system in 2025, surpassing both fossil fuel plants and hydroelectric generation, marking a historic milestone in the country’s energy transition. Renewable energy sources are almost two-thirds of the country’s total installed capacity, demonstrating significant progress toward a cleaner, more diversified, and more resilient electricity grid despite volatile international oil prices. The growth of distributed generation, with solar panels installed in homes, businesses, and industries, also reflects a democratization of access to clean energy that directly benefits companies and consumers. This dynamism has been driven by sustained private investment in the sector, with international companies continuing to expand their installed capacity and choosing El Salvador as a destination for long-term renewable energy projects. The consolidation of solar energy as the main source of generation reinforces the country’s attractiveness for investment in sustainable energy infrastructure and positions El Salvador as a regional leader in the transition to clean energy.
El Salvador strength in Tax Revenue Exceeds Fiscal Targets and Reinforces the Sustainability of Public Finances
El Salvador’s tax revenues registered robust growth during the first five months of 2026, significantly exceeding the targets projected by the Ministry of Finance and reflecting the dynamism of the country’s economic activity. Value Added Tax (VAT) and Income Tax led the revenue performance, driven by increased domestic consumption, the expansion of the formal sector, and the growth of business activity in multiple sectors of the economy. The above-budget revenue reduces the need to resort to alternative sources of financing, such as borrowing, strengthening the country’s fiscal sustainability within the framework of the program agreed upon with the IMF. The growth in tariff revenues and selective consumption taxes also reflects the dynamism of foreign trade and domestic consumption, positive signs of the vitality of the Salvadoran economy. This fiscal performance consolidates the strength of El Salvador’s public finances and reinforces the confidence of multilateral organizations and investors in the country’s economic trajectory.
El Salvador has positioned itself as the third-largest exporter of services in the Central American region
El Salvador consolidated its position as the third Central American country with the highest volume of service exports by the end of 2025, with positive growth compared to the previous year, according to a report by the Secretariat for Central American Economic Integration (SIECA). This performance reflects the maturity and diversification of El Salvador’s export offerings in sectors such as tourism, transportation, telecommunications, information technology, and business services, which together represent the majority of the country’s service exports. Travel is the largest sector, demonstrating the impact of the growing flow of international tourists on the economy, followed by transportation and telecommunications, sectors that reflect the modernization of the country’s infrastructure and connectivity. The dynamism of service exports complements the performance of goods exports, consolidating El Salvador as an economy with a broad productive base oriented toward international markets. This regional positioning opens investment opportunities in high value-added sectors such as technology, financial services, tourism, and shared service centers, which drive the country’s economic growth.
Guatemala and Peru Activate Free Trade Agreement, Opening a New Era of Trade Opportunities
Guatemala and Peru celebrated the entry into force of their free trade agreement on July 1st, an agreement that will strengthen trade, boost investment, and promote the development of regional value chains between Central and South America. The FTA opens new opportunities for Guatemalan companies to expand their exports to the Peruvian market in sectors such as pharmaceuticals, confectionery, aluminum products, and food preparations, diversifying their export destinations beyond the Central American region. For Guatemala, the agreement also represents a gateway to a dynamic and growing South American economy, with which accumulated trade in recent years demonstrates significant potential for expansion. The Guatemalan Minister of Economy emphasized that the activation of the agreement is the result of a joint effort that translates into a valuable opportunity for the country’s companies to expand their presence in South America. This trade milestone reinforces Guatemala’s strategy to diversify its economic alliances and consolidates its position as an export platform with preferential access to the region’s key markets.
Guatemala strengthens Strategic Alliance with Germany in Investment, Trade, and Infrastructure
Germany is advancing a practical strategy to consolidate its presence in Guatemala, with three priority areas: workforce, trade, and investment, following the visit of German President Frank-Walter Steinmeier and the launch of joint working groups among key stakeholders from both economies. German interest focuses on public-private partnerships and government-to-government agreements geared toward infrastructure projects, financial cooperation, and renewable energy, with German companies already receiving support to establish operations in the country. The German diplomatic representative highlighted that businesspeople visiting Guatemala discover a country with a stable macroeconomy, a young and adaptable workforce, a stable democracy, and a business environment that fosters a positive sentiment among investors. Germany’s strategic vision positions Guatemala not only as a market but also as a manufacturing and export platform to Central America and the United States, offering opportunities for local companies to obtain European certifications and expand their presence in the German market. This rapprochement strengthens Guatemala’s attractiveness to European investment and opens a new stage in the bilateral relationship with one of the continent’s most important trading partners.
Guatemala: The banking system demonstrates exceptional strength and consolidates its position as a pillar of economic growth
The Guatemalan banking system maintains a position of outstanding strength, with capitalization, liquidity, and profitability indicators that far exceed regulatory standards, according to the most recent report from the Superintendency of Banks and the assessment of the International Monetary Fund, which rated the system as solid and highly profitable. The capital adequacy ratio significantly exceeds the legal minimum, delinquency remains at very low levels, and return on equity reflects operational efficiency that generates confidence among national and international depositors and investors. The loan portfolio is growing at rates exceeding 12% annually, led by the business sector, demonstrating the financial system’s capacity to support the expansion of the private sector and leverage productive investment in the country. The IMF also highlighted the recent approval of the Anti-Money Laundering Law as a fundamental step, aligning Guatemala with international standards of financial integrity and strengthening its position before global regulatory bodies. This robust financial system, undergoing rapid digital transformation and financial inclusion, is one of Guatemala’s strongest assets for attracting investment and sustaining its long-term economic growth.
Guatemala Registers Its Greatest Advance in Institutional Transparency in Nearly Two Decades
Guatemala is showing concrete signs of recovery in one of the indicators most closely watched by investors and international organizations, registering a significant improvement in the Bertelsmann Foundation’s Transformation Index, breaking a downward trend that had persisted since 2006. This progress is attributed to measures implemented by the government of President Bernardo Arévalo, including the creation of the National Commission Against Corruption, new accountability mechanisms, and improvements to public procurement processes aimed at increasing transparency. The report also acknowledges the passage of the country’s first Competition Law, considered a structural reform that promotes more open markets, limits monopolistic practices, and strengthens the rules of economic competition. On the macroeconomic front, Guatemala maintains a positive assessment with moderate growth, controlled inflation, and relatively low public debt compared to the region. This institutional progress represents a significant step toward consolidating a more reliable and attractive environment for long-term investment in the country.
Honduras Receives IMF Support with New Disbursement Strengthening its Economic Reform Program
The International Monetary Fund approved the fourth and fifth reviews of Honduras’ economic program, enabling a new disbursement that increases the total resources received since the signing of the agreement in 2023 and reaffirms the multilateral organization’s confidence in the country’s reform trajectory. The IMF highlighted the resilience of the Honduran economy in a complex international environment, noting the solid fiscal performance, the significant improvement in international reserves, and the strengthening of the foreign exchange auction system as positive signs of the program. The IMF’s Deputy Managing Director emphasized the authorities’ strong commitment to implementing prudent fiscal policies, structural reforms, and an appropriate mix of monetary and exchange rate policies that have contributed to preserving macroeconomic stability. They also highlighted the importance of advancing reforms in the electricity sector organization and governance measures to limit fiscal risks and support medium-term economic growth. This multilateral support strengthens Honduras’ institutional credibility and creates more favorable conditions for attracting private investment and sustaining inclusive and sustainable economic growth.
Honduras Begins 2026 with Solid Economic Growth Driven by Investment and Exports
The Honduran economy registered its highest quarterly growth rate in the last four years during the first quarter of 2026, primarily driven by the dynamism of public investment in road infrastructure and the strong performance of the export sectors, according to the Central Bank of Honduras. Financial intermediation, communications, electricity generation, and manufacturing led the productive performance, demonstrating a diversified and recovering economic base. The export sector also contributed positively, with increased shipments of coffee, crude oil, and cigars, as well as growth in freight transport and financial services, reflecting Honduras’s growing integration into international markets. Gross Fixed Capital Formation consolidated its position as the main driver of growth from an expenditure perspective, boosted by road and bridge construction and rehabilitation projects that strengthen the country’s productive infrastructure. This result reaffirms the positive trajectory of the Honduran economy and creates favorable conditions for continued private investment and sustained growth throughout the rest of the year.
Honduras Boosts Tourism Revenue with Outstanding Growth in International Visitor Arrivals
Honduras’ tourism revenue showed outstanding performance in the first quarter of 2026, with significant growth driven by increased international visitors, solidifying tourism as the country’s leading export sector within the services account, according to the Central Bank of Honduras. The Honduran Institute of Tourism reported that nearly one million visitors entered the country during the period, a figure notably higher than that recorded in the same period of the previous year, reflecting Honduras’ growing appeal as a regional tourist destination. By 2026, the sector aims to exceed one billion dollars in foreign exchange earnings, a goal that the dynamism of the first quarter puts the country within reach. Tourism activity generated a positive surplus in the travel services balance, demonstrating that Honduras receives more foreign exchange from inbound tourism than it spends on outbound tourism. This performance consolidates tourism as a strategic engine of the Honduran economy and opens up investment opportunities in hotel infrastructure, connectivity and high-value tourism services.
Nicaragua Advances in Integrating Artificial Intelligence into Education and Strengthens its Digital Capabilities
Nicaragua participated in the 2026 Artificial Intelligence in Education Forum, held in Costa Rica, with delegations from nine countries in the region, sharing its progress in integrating technology and artificial intelligence into the national education system. The Minister of Education highlighted initiatives such as artificial intelligence workshops, a catalog of digital tools for teachers, a green robotics program for elementary school students, and the use of adaptive platforms for teaching mathematics, demonstrating a comprehensive approach to educational modernization. These actions are being developed within the framework of the National Education Strategy and the Regulatory Framework on the Safe, Ethical, and Responsible Use of Technologies, reflecting an institutional commitment to the digital transformation of learning. Nicaragua’s participation in this regional exchange strengthens Central American educational cooperation and positions the country as an active player in the adoption of emerging technologies in education. The development of digital and STEAM skills in the student population lays the foundation for training the human talent that the economy of the future will demand and improves the conditions for attracting investment in knowledge-intensive sectors.
BLP INSIGHT
Costa Rica Establishes Preventive Sanitary Measures on Imports of Poultry Products from Honduras
Costa Rica’s National Animal Health Service (SENASA) established new preventive sanitary measures impacting the trade of poultry products from Honduras, following the confirmation of a Highly Pathogenic Avian Influenza case in that country. The measures take effect immediately at all points of entry into the country.
Nicaragua Strengthens Corporate Requirements: New Beneficial Ownership Rules, Registered Powers of Attorney, and Expansion of Obligated Parties
Nicaragua strengthens its anti-money laundering framework with the approval of Law No. 1282, in force since June 19, 2026. The reform expands the scope of obligated entities, adopting FATF terminology for Designated Non-Financial Businesses and Professions (DNFBPs), and transfers the supervision of lawyers and notaries to a new General Directorate within the Judicial System. The law expressly confirms and reinforces that submitting a beneficial ownership declaration is an indispensable requirement for initiating, continuing, or resolving any procedure before public, financial, or private entities. An entirely new provision requires that any power of attorney used in corporate matters be registered with the Commercial Registry prior to its use, under penalty of the corresponding corporate acts being unregistrable — a failure that can stall transactions affecting the entire company. The obligation to maintain consolidated prevention and risk assessment programs now extends beyond banking groups to business groups at large, provided that at least one of their members qualifies as an obligated entity under the law.
Honduras: CNBS amends Reinsurance and Fronting Regulations
The Honduran National Banking and Insurance Commission (CNBS) amended the regulation governing reinsurance operations, fronting and the registry of foreign reinsurers and reinsurance brokers. The amendment introduces practical changes to registration and update processes before the CNBS, with greater documentary flexibility and special rules for applications filed during the first semester. The measure is relevant for reinsurers, reinsurance brokers, local insurance companies and other market participants.
EVENTS
Virtual Training: “360° Update: Key Regulatory Changes in the Free Trade Zone Regime”
The Free Trade Zone Regime continues to evolve, and staying up to date with regulatory changes is essential for maintaining competitiveness in the sector. In partnership with AZOFRAS, we invite you to join this virtual training session, where we will discuss the latest regulatory developments and the key considerations companies should keep in mind to adapt effectively.
📅 July 21 | 9:00 a.m. | Microsoft Teams
*Please note that this training session will be delivered in Spanish only.
ECONOMIC INDEX
| Country | Exchange Rate (local currency per USD) | Basic Passive Rate (local currency) | Monetary Policy Rate | Sovereign Debt | Year-on-Year Inflation | ||
|---|---|---|---|---|---|---|---|
| S&P | Moody’s | Fitch | |||||
| Costa Rica | 455.42 | 3.66% | 3.25% | BB | Ba2 | BB | -0.97% |
| El Salvador | 8.75 | 4.66% | N/A | B- | B3 | B- | 2.53% |
| Guatemala | 7.62 | 4.70% | 3.50% | BB+ | Ba1 | BB+ | 2.86% |
| Honduras | 26.73 | 6.74% | 5.75% | BB- | B1 | N/A | 6.09% |
| Nicaragua | 36.62 | 1.45% | 5.75% | B+ | B2 | B | 3.72% |
02/07/2026 | Source: secmca.org
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