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 the Select Group of Leading Countries in Attracting Foreign Investment
Costa Rica ranked among the world’s top 10 countries with the highest number of foreign direct investment projects per million inhabitants, according to the 2026 edition of the Greenfield FDI Performance Index, a specialized unit of the Financial Times. The study, based on investment projects announced in 2025, ranks the country eighth globally, with 18.1 projects per million inhabitants, ahead of economies such as Cyprus and Hong Kong. In the main index, which compares each country’s share of investment projects with its weight in global GDP, Costa Rica scored 6.5, ranking fourth globally and becoming the only country in Latin America and the Caribbean among the top 20 in the overall ranking. The country also ranks highest among OECD members in this metric. This international recognition reaffirms Costa Rica’s ability to attract high-value investment relative to its economy and population.
Costa Rica Clarifies the True Scope of the New U.S. Tariff
The Costa Rican Chamber of Foreign Trade (CRECEX) clarified that the new 12.5% tariff imposed by the United States does not apply to all Costa Rican exports, as it includes a broad list of exempt products. Notable exclusions include key food products such as coffee, pineapple, bananas, avocados, mangoes, and cocoa, as well as pharmaceuticals, technology, semiconductors, textiles, and goods covered by sector-specific measures such as aluminum, steel, and vehicles. The new tariff took effect on July 24, replacing the temporary 10% surcharge that had been in place for 150 days; therefore, the effective increase for affected products is just 2.5 percentage points, not 22.5% as might be mistakenly interpreted. The Chamber’s president, Rodney Salazar, called for calm and clarity, urging stakeholders to neither overestimate nor underestimate the measure’s actual impact. This clarification provides greater certainty to Costa Rica’s export sector, enabling it to make informed decisions and maintain its competitiveness in the U.S. market.
Costa Rica Eases Its Monetary Policy to Stimulate Credit and Investment
The Central Bank of Costa Rica cut its policy rate by 25 basis points, bringing it to 3% annually, after keeping it at 3.25% since December 2025. The decision paves the way for more favorable credit conditions for both businesses and consumers, in a context where monetary and financial indicators continue to show price stability over the central bank’s policy horizon. The BCCR’s Board of Directors determined that there was sufficient room for this adjustment, while maintaining a prudent stance in light of external uncertainty associated with geopolitical conflicts and the evolution of international prices. The rate will remain at 3% at least until the next scheduled review on September 24. Such adjustments improve access to financing and stimulate economic activity, fostering new opportunities for investment and consumption in Costa Rica.
Costa Rica Is Experiencing a Historic Upturn in the Construction Sector
Construction in Costa Rica recorded 5.7 million square meters of planned construction during the first half of 2026, a 21% increase compared to the same period in 2025, according to the Federated College of Engineers and Architects. The growth was driven primarily by industrial projects, which surged 68.8% thanks to new warehouses and renovations, while urban development projects such as roads and condominiums grew 40.4% and residential projects increased 4.1%. Geographically, Limón led the growth with a 72.4% increase in construction plans, followed by Heredia and Puntarenas. In comparison, the canton of Buenos Aires in Puntarenas recorded a year-over-year increase of 643.6%. Although commercial and office construction slowed, the overall result exceeded projections for the year. This construction momentum confirms the sector’s strength as a driver of employment, investment, and regional development across Costa Rica.
Costa Rica Boosts Exports with Growth Across All Regions
Costa Rica’s exports of goods reached US$11,722 million during the first half of 2026, a 7% increase compared to the same period in 2025, driven by both the free trade zone regime and the definitive regime, according to the Foreign Trade Promotion Agency (PROCOMER). The precision and medical equipment sector remained the country’s leading export sector, accounting for 46% of total exports and posting a 4% increase; the electrical and electronics sector grew by 25% and the food industry advanced by 10%. All regions of the country recorded increases in exports, with the Brunca region performing the best with 36% growth driven by palm oil, and the Central region making the largest absolute contribution thanks to medical devices. By destination market, Asia showed the largest percentage increase at 41%, followed by Europe at 13%, reflecting a successful diversification of Costa Rican markets. This performance confirms the strength and adaptability of Costa Rica’s export sector, consolidating new opportunities for investment and growth across all regions of the country.
El Salvador Diversifies Its Export Base and Conquers New Global Markets
Salvadoran exports reached US$3,400.6 million as of June 2026, a 4.1% increase compared to the same period in 2025, according to figures from the Central Reserve Bank analyzed by COEXPORT. June emerged as the best month of the first half of the year, with US$597.2 million in exports and year-over-year growth of 10.5%. The agribusiness sector posted the highest growth in absolute terms, reaching its highest-ever market share, while sectors such as machinery, metalworking, and chemicals also outperformed the overall growth average. The United States remains the primary export destination. Exports to Mexico, China, Spain, and Canada posted notable growth, while new trade routes included Morocco, Georgia, and Senegal. This momentum confirms the diversification of El Salvador’s export sector toward higher-value-added sectors, strengthening the country’s opportunities for investment and international trade.
El Salvador Catches the World Bank’s Attention with a Strategic Cooperation Agenda
El Salvador’s President, Nayib Bukele, welcomed World Bank President Ajay Banga on a visit aimed at strengthening cooperation with the multilateral bank and learning about the government’s strategic projects. During his tour, Banga visited the OEI School Center in Santa Tecla, where an AI-powered educational platform is being implemented, and the facilities of Doctorsvapp, the national telehealth system featuring telemedicine consultations and AI-automated triage. The visit also included a meeting with investors from the tourism sector and Tourism Minister Morena Valdez to explore investment opportunities in the country. The Presidency emphasized that this meeting reflects the World Bank’s interest in closely supporting El Salvador’s transformation and identifying real opportunities for cooperation. This engagement builds on the IMF’s recent recognition of El Salvador’s economic performance, reinforcing multilateral organizations’ confidence in the country’s investment potential.
El Salvador Strengthens Its Position as a Regional Exporter of Electricity
El Salvador’s electricity exports grew by 76.7% during the first half of 2026, reaching US$16.14 million, according to the Central Reserve Bank. Guatemala emerged as the main destination, with US$13.50 million and a 72.31% increase compared to the previous year, while exports were also recorded to Nicaragua, Costa Rica, and Panama. At the same time, electricity imports fell by 50.9% to US$8.79 million, reflecting the country’s increased domestic generation capacity. This momentum has been sustained despite the El Niño climate phenomenon, which has reduced the share of hydroelectric generation—a decline offset primarily by natural gas-fired power plants. This strengthening of regional energy exchange confirms El Salvador’s growing ability to diversify its energy mix and establish itself as a key player in the Central American electricity market.
El Salvador’s Banking System Is Strengthening as It Moves Closer to Meeting the IMF’s Liquidity Targets
El Salvador’s banking system increased its liquidity reserves to US$3,517.7 million in May 2026, equivalent to 14.67% of reserve requirement liabilities, moving closer to the 15% target set in the program with the International Monetary Fund for mid-year. This result represents a sustained increase over the 11.4% recorded in February 2025, when the US$1,400 million Extended Fund Facility program was approved, aimed at strengthening the financial soundness of the banking system. The Central Reserve Bank implemented a gradual increase in the reserve requirement, rising from 12% in January 2025 to the current 14.67%, allowing banks to adjust without compromising the credit available to the economy. This strengthening of reserves consolidates the stability of the Salvadoran financial system and reinforces the confidence of investors and international organizations in the soundness of the country’s banking sector.
El Salvador’s Airport Consolidates Its Role as a Regional Hub
El Salvador’s San Óscar Arnulfo Romero y Galdámez International Airport handled more than 2.63 million passengers during the first half of 2026, a 4.7% increase compared to the same period in 2025, according to the Autonomous Executive Port Commission. The transfer passenger segment recorded the highest growth, with an 11.8% increase, reflecting the airport’s strengthening role as a regional hub. Departing and arriving passengers also showed increases of more than 3%, reinforcing the terminal’s overall momentum. In terms of air cargo, more than 19.81 million kilograms were handled, driven primarily by an 8.79% increase in imports. This performance confirms the Salvadoran airport’s importance as a key hub for trade and tourism, strengthening investment opportunities in El Salvador’s airport infrastructure and logistics.
Guatemala Diversifies Its Tourism Markets and Projects a Year of Sustained Growth
Guatemala welcomed 1.6 million international visitors during the first half of 2026, a 1% increase compared to the same period the previous year, according to the Guatemalan Tourism Institute. The country saw notable increases in tourist arrivals from emerging markets such as Colombia (42%), Japan (39%), and Russia (30%), offsetting the decline in visitors from El Salvador and the United States—the latter attributed to a 73% rise in airfares linked to logistical adjustments for the 2026 World Cup. In terms of spending, tourists made electronic payments totaling more than US$142.2 million during the first quarter, 13% more than in 2025, with the United States leading the economic impact. The country also improved its Global Tourism Perception Index by 3.7%, surpassing regional competitors such as Mexico and Peru in terms of perceived safety. Guatemala projects it will close out 2026 with 3.63 million visitors, consolidating its path toward the goal of 4 million by 2027 and strengthening investment opportunities in the tourism sector.
Guatemala Is Approaching a Historic Financial Milestone with Increasingly Affordable and Reliable Debt
Guatemala has transformed its standing in international markets. After paying 7.05% on a dollar-denominated bond in 2023, the country successfully issued $1.5 billion in 2025 at rates of 6.25% and 6.87%, with demand six times greater than the amount offered. Finance Minister Jonathan Menkos explained that this improvement is due to low public debt (27.9% of GDP), solid international reserves equivalent to 26% of GDP, and a prudent fiscal policy that has sustained economic growth above 3.5%. Credit rating agencies have responded positively: Fitch raised Guatemala’s rating to BB+, while S&P and Moody’s agree that the country is one notch away from investment grade. This confidence already makes it possible to finance strategic projects such as the modernization of Puerto Quetzal, the Metro Riel rail system, and thousands of kilometers of rural roads, with stable long-term financing. This new chapter of fiscal strength opens a historic window of opportunity for Guatemala to translate its macroeconomic stability into infrastructure, development, and greater opportunities for productive investment.
Honduras Makes Progress in Its First Half-Year with Infrastructure Investment and New Strategic Reforms
The Honduran government highlighted progress made during the first six months of President Nasry Asfura’s administration, with investments totaling nearly US$37.6 million in infrastructure projects carried out by the Ministry of Infrastructure and Transportation. In the energy sector, reform of the electricity sector is advancing in the National Congress. The proposal—which has been discussed for over a month with legislative representatives, international organizations, and the business sector—aims to reduce losses at the National Electric Power Company, improve service quality, and maintain affordable rates. The proposal calls for the creation of state-owned companies with administrative autonomy to manage the electricity system, while the state retains ownership. On the trade front, the government is working to identify new export opportunities for products such as melons, watermelons, and shrimp, to strengthen foreign sales and create new sources of employment. These actions reflect an agenda that combines infrastructure, strategic reforms, and export diversification to drive the country’s economic growth.
Honduras Promotes Rural Development by Building New Capacities for Its Producers
The Government of Honduras presented the progress made by the Comprehensive Rural Development and Productivity Project (ProOccidente), which has allocated more than US$2.31 million in 2026 to strengthen agricultural and livestock production. The funds are directed toward training and providing technologies to more than 2,000 producers in the western part of the country, strengthening their technical skills and facilitating their access to marketing channels. The results were presented during the ProOccidente Field Day, under the slogan “From Producer to Market,” with the participation of officials from the Ministry of Agriculture and Livestock and beneficiary producers. The initiative aims to contribute to the economic development of rural communities by increasing opportunities for men, women, and young people engaged in agriculture. Programs of this kind boost the productivity of Honduras’ agricultural sector and foster new opportunities for rural development in the country.
Honduras Projects Solid Growth for 2026, According to the Private Sector
The Honduran Council of Private Enterprise (COHEP) projected that Honduras’s economy will grow 3.4% in 2026 and 3.7% in 2027, according to a report based on the World Bank’s projections for Central America and the Dominican Republic published in June. The report also highlights that Costa Rica leads the region in the Index of Economic Freedom with 69.1 points, followed by Panama, Guatemala, and Honduras, which ranks fourth in the region with 59.1 points. COHEP recommended strengthening the country’s economic policies and regulatory framework, making progress in areas such as property rights, judicial efficiency, and business sophistication, with the aim of improving the investment climate. Among the factors that help mitigate regional economic risks is the reliance on remittances, a key component for the stability of the Honduran economy. This growth projection, together with the private sector’s recommendations, sets out a roadmap for strengthening competitiveness and attracting greater investment to Honduras in the coming years.
Honduras Moves Toward the Democratization of Finance with a Securities Market Reform
The chair of the Legislative Committee on Finance and Foreign Cooperation met with representatives of the Central American Stock Exchange to discuss strengthening financial transparency and a comprehensive reform that would transform the current securities market law into a capital markets law. The proposal aims to channel Hondurans’ savings in deposit accounts, pensions, and social security funds into investments with higher returns, thereby democratizing access to finance. Among the mechanisms being explored is the possibility for Honduran migrants—whose remittances account for nearly one-third of the national economy—to invest a portion of those funds and build long-term wealth for their families. This reform represents a strategic opportunity to channel national savings toward productive investment and strengthen the country’s financial development.
Nicaragua Expands Mining Activity with New Concessions and a Sector That Continues to Grow
The Nicaraguan government granted two new open-pit mining concessions to Chinese companies in the departments of Río San Juan and Chinandega as part of the expansion of the country’s mining sector. Nicaraguan mining exports reached US$2,009.2 million in 2025, a 44.4% increase compared to 2024, cementing mining as one of the economy’s most dynamic sectors. Raw gold remains the main export product, with revenues of US$1,971 million and a volume of 19.9 metric tons, marking a historic milestone for the country. This performance reflects the growing interest of international capital in Nicaragua’s extractive sector, against a backdrop of increased mining concession activity in various regions of the country. The dynamism of the mining sector continues to position it as a significant source of foreign exchange and investment for Nicaragua’s economy.
BLP INSIGHT
Guatemala Issues New Regulations for Renewable Distributed Generation
Guatemala approved a new regulatory framework governing the interconnection, operation and commercialization of renewable distributed generation facilities of up to 5 MW connected to the distribution system. The regulation introduces a digital interconnection process with defined timelines, new technical requirements and digital platform obligations for distribution companies. It also establishes a dispute resolution mechanism and strengthens the supervisory powers of the National Electric Energy Commission (CNEE). The resolution will enter into force on August 17, 2026.
Guatemala Enables Electronic Filing of Applications for Insurance and Reinsurance Companies
Guatemala amended six insurance sector regulations to allow applications and supporting documentation to be submitted electronically to the Superintendency of Banks (SIB). The reform applies to procedures such as the incorporation of insurers, branch establishments, mergers, acquisitions and portfolio transfers. While filings may now be made electronically, entities must continue maintaining physical records of original documents. The changes streamline regulatory procedures and support the digitalization of insurance sector supervision.
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 | 454.75 | 3.64% | 3.00% | BB | Ba2 | BB | -0.31% |
| El Salvador | 8.75 | 4.63% | N/A | B- | B3 | B- | 2.76% |
| Guatemala | 7.62 | 4.70% | 3.50% | BB+ | Ba1 | BB+ | 2.27% |
| Honduras | 26.79 | 6.67% | 5.75% | BB- | B1 | N/A | 5.83% |
| Nicaragua | 36.62 | 1.44% | 5.75% | B+ | B2 | B | 3.98% |
30/07/2026 | Source: secmca.org
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