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 Transforms Its Export Landscape Through Significant Market Diversification
Costa Rica’s exports are shifting toward destinations beyond traditional markets; products such as bananas, premium coffee, and pineapples are spearheading this expansion into countries like Russia, Turkey, and Norway, according to PROCOMER. Between 2007 and 2026, exports to non-EU European countries surged by over 4,386%—rising from US$4.8 million to US$218.5 million—while the Middle East and Asia also saw more than tenfold growth during the same period, with key destinations including China, Japan, Algeria, and the United Arab Emirates. Rodney Salazar, President of the Chamber of Foreign Trade, emphasized that this growth demonstrates Costa Rica’s ability to place products in non-traditional markets, opening up opportunities for specialty coffee, processed foods, and higher value-added pharmaceuticals. North America remains the primary destination, accounting for a 47.2% share and US$5.556 billion in sales, although its relative weight has decreased compared to two decades ago. This strategic diversification strengthens the resilience of Costa Rica’s export sector, allowing it to offset market slowdowns by capitalizing on new opportunities in other international destinations.
Costa Rica Plans a Major Leap Forward in Road Infrastructure with a New Tunnel and Strategic Interchanges
The MOPT and CONAVI have begun conducting feasibility studies for at least 30 new road projects that could be carried out in the coming years. Key projects include a new tunnel at the “Y Griega” intersection in Desamparados and three interchanges at critical points along Route 32, between the Saprissa Bridge and San Luis de Santo Domingo. Contracting these studies represents an investment of ¢5.607 billion and will encompass technical, economic, environmental, and legal analyses, as well as preliminary designs. The goal is to provide CONAVI with a portfolio of pre-engineered projects that facilitates securing funding and ensures continuity beyond political terms. The pipeline also includes at least 18 bridges, slope and drainage improvements, the rehabilitation of Route 10, and a grade-separated crossing in Nicoya, reinforcing the commitment to modernizing the country’s road infrastructure.
Costa Rica Records Sustained Moderation in Consumer Prices
Inflation in Costa Rica stood at -0.17% at the end of August 2026, according to the National Institute of Statistics and Census (INEC), continuing a trend of narrowing negative variation from the -2.73% recorded in February. Notable among the goods showing the largest price drops during the month were diesel (down 8.77%), liquefied gas (-4.59%), and gasoline (-3.15%), providing direct relief for the country’s transport and productive sectors. Prices for international travel packages and new vehicles also declined. The INEC highlighted that, following the Consumer Price Index methodology update implemented in July, the new composition includes 43 additional goods and services to better reflect the consumption patterns of Costa Rican households. This sustained moderation in prices—particularly for fuels—strengthens consumer purchasing power and contributes to a more predictable economic environment for households and businesses in Costa Rica.
Costa Rica Launches First National Assessment of Corporate Sustainability
The National Council for Sustainability is spearheading the “State of Sustainability in Costa Rica 2026” initiative—the first national assessment to combine technical indicators, business perceptions, and sectoral analysis, involving nearly 100 companies and over 600 consumers nationwide. This initiative addresses a growing need: the adoption of International Sustainability Disclosure Standards and new requirements from the National Council for Financial System Supervision (CONASSIF) are transforming environmental, social, and governance (ESG) management into a prerequisite for accessing credit, insurance, and investment. Silvia Chávez Herra, President of the Council, emphasized that this tool will provide insight into the country’s key challenges in establishing a more competitive and sustainable economic model. The study, which counts HEINEKEN Costa Rica as its primary strategic partner, has already completed its interview and consultation phase and is now moving to a direct survey of companies across all economic sectors. The results will be presented in the third week of October, reinforcing Costa Rica’s position as a regional leader in corporate sustainability and strengthening its appeal to ESG-focused investors.
Costa Rica Modernizes Immigration Control with New Biometric Technology
Juan Santamaría International Airport has put into operation its new biometric arches (e-gates) to expedite immigration control, allowing Costa Rican travelers to complete their entry into the country independently using facial recognition and digital passport reading. The process takes between 17 and 22 seconds per passenger, and each gate has a capacity of 180 people per hour, increasing processing capacity to 720 additional passengers per hour. Juan Belliard, Director of Operations and Security at Aeris, highlighted that the system is part of the airport’s expansion and modernization plan, which involves a US$3 million investment. Currently, the technology is available only to adult Costa Ricans with biometric passports. However, the immigration authority says biometrics will soon apply to nationals of the United States and Canada. This modernization boosts the operational efficiency of the country’s main airport, improves the traveler experience, and strengthens Costa Rica’s technological infrastructure in air connectivity.
El Salvador Advances Its IMF Agreement and Could Receive an Additional US$140 Million
The International Monetary Fund and Salvadoran authorities have reached a staff-level agreement on the combined second and third reviews of the 40-month program under the IMF’s Extended Fund Facility, which could allow the country to access approximately US$140 million in additional funds, subject to approval by the institution’s Executive Board. According to the IMF, the assessment reflects positive developments in the Salvadoran economy, with economic activity exceeding forecasts during 2025 and a projected real GDP growth of 4.5% in 2026, driven by dynamic private investment and consumption, remittances, and tourism. The institution also highlighted that the program is contributing to a significant reduction in poverty and improvements in public service efficiency. The IMF projects that the Non-Financial Public Sector primary surplus will rise from 2.9% of GDP in 2026 to 3.7% in 2027, in line with reducing public debt to 80% of GDP by 2030. This progress in the IMF program reinforces international confidence in El Salvador’s trajectory of macroeconomic stability and sustained growth.
El Salvador and Bolivia Strengthen Trade Relations
El Salvador and Bolivia highlighted the implementation of a trade agreement—in effect since July 30—that grants mutual tariff preferences for access of 259 Salvadoran products and 250 Bolivian products to their respective markets. Bolivian Foreign Minister Héctor Huanca emphasized that the agreement serves as a concrete tool to expand and diversify trade between the two countries, while Salvadoran Ambassador to La Paz Ana Guadalupe Rivas noted that it marks a new stage in bilateral economic relations. The instrument establishes a solid legal framework for economic, scientific, and technological cooperation, eliminating tariff and non-tariff barriers and introducing digital signatures for foreign trade procedures. El Salvador grants benefits to Bolivian products such as flowers, fruits, and Brazil nuts, while Bolivia extends benefits to Salvadoran exports such as food products, apparel, and medicines. Foreign Minister Huanca highlighted that this agreement could become a strategic bridge between Central and South America, strengthening not only trade but also business and social ties between the two nations.
El Salvador Strengthens Ties with Ciudad Juárez to Attract Mexican Investment
El Salvador seeks to expand trade relations and attract investment from Ciudad Juárez, Mexico, through a virtual business forum organized by the Salvadoran Embassy, attended by 25 business leaders from the state of Chihuahua. The meeting showcased investment opportunities in sectors such as aerospace, auto parts, manufacturing, services, and tourism, alongside the conditions available for companies interested in launching new production projects. Ambassador Delmy Cañas highlighted El Salvador’s logistical advantages—including its geostrategic location, connectivity, and trade agreements with over 40 markets—positioning it as a key regional destination. The diplomat emphasized that the Mexican private sector is a vital partner for the country, underscoring the interest in solidifying investments and strategic alliances that yield mutual benefits. Participating business leaders also received information on the business climate and security improvements in El Salvador, while establishing contacts with companies, trade associations, and industrial clusters from Ciudad Juárez, one of Latin America’s major industrial hubs.
El Salvador Builds One of Central America’s Largest Stadiums with Chinese Cooperation
Construction of El Salvador’s new National Stadium in Antiguo Cuscatlán is progressing, with civil works more than 60% complete according to the latest reports and a target completion date in the first half of 2027. Carried out by the China State Construction Engineering Corporation as part of the cooperation between China and El Salvador, the project is designed to seat 50,000 spectators—with the potential to expand to 60,000—placing it among the largest stadiums in Central America and surpassing major venues in Costa Rica, Honduras, Panama, and Guatemala. The facility will span approximately 57,500 square meters and feature VIP and VVIP areas, high-tech access control systems, and a metal roof structure for the stands weighing around 14,000 tons. The venue is designed to host international matches, games featuring the Salvadoran national team, sporting competitions, and large-scale entertainment events. This sports infrastructure megaproject boosts El Salvador’s capacity to host major international events, creating new opportunities for the country’s tourism and international cooperation.
El Salvador Ranks as a Global Leader in an International Study on Bitcoin
El Salvador recorded the highest proportion of people reporting Bitcoin ownership among the countries included in Cornell University’s Bitcoin Adoption Index, with 72% of respondents—surpassing other markets evaluated in the study. Morning Consult conducted research between December 2024 and March 2025 and gathered responses from 25,880 people across 25 countries using a specialized questionnaire on Bitcoin knowledge, ownership, and usage. Globally, the study found that 90% of participants had heard of the cryptocurrency. However, only 30% ever owned Bitcoin, revealing a significant gap between awareness and actual ownership of the digital asset. The index was developed with the participation of the Institute for Technology Policy at Cornell’s Jeb E. Brooks School of Public Policy, alongside other organizations specializing in technology and human rights. This international academic recognition positions El Salvador as a global benchmark for digital asset adoption, reinforcing its pioneering status since becoming the first country to adopt Bitcoin as legal tender in 2021.
The World Bank Supports a Historic Transformation of Civil Aviation in Guatemala
The World Bank’s Board of Executive Directors approved US$250 million in financing for Guatemala’s Civil Aviation Recovery Program, which will strengthen the sector’s institutional framework and modernize its airport infrastructure. The project will benefit La Aurora International Airport, Mundo Maya International Airport, and the airfields in Puerto Barrios, Quetzaltenango, and Huehuetenango by improving runways, drainage systems, lighting, and modern navigation equipment, as well as training and certifying technical personnel. Minister of Public Finance Jonathan Menkos emphasized that this modernization represents a national commitment and a long-term investment in infrastructure that strengthens connectivity, tourism, and investment. Passenger traffic is estimated to exceed 11.2 million by 2040—more than double the 5.2 million projected for 2025. The project aligns with the “Guatemala Vuela” (Guatemala Flies) Strategic Plan, which aims to position the country as a regional air transport hub by 2044 by bringing new opportunities for investment, employment, and economic development throughout Guatemala.
Guatemala Unveils Largest Budget in History, Focusing on Growth and Social Well-Being
The Government of Guatemala submitted its proposed budget for 2027 to Congress, totaling 192.045 billion quetzals (US$25.236 billion)—a 13.8% increase over the 2026 budget and the highest figure in the country’s history. President Bernardo Arévalo emphasized that governing means transforming people’s lives. Minister of Public Finance Jonathan Menkos noted that the budget aims to solidify the government plan’s goals and maintain a fiscal policy geared toward economic growth and employment. The proposal projects 4% GDP growth, driven by household consumption, exports, and family remittances. Key allocations include Education (US$3.666 billion), Public Health (US$2.446 billion), and Communications and Infrastructure (US$1.402 billion), with over 46% of the budget dedicated to social investment and basic services. This historic budget reinforces Guatemala’s commitment to sustained economic growth and the strengthening of public services for its population.
Guatemala Advances Its Cooperation with the U.S. Millennium Challenge Corporation
Guatemala is once again on the radar of the U.S. Millennium Challenge Corporation (MCC), appearing among 91 candidate countries eligible for consideration for assistance in 2027, according to a notice published in the Federal Register on September 3. Guatemala’s relationship with the MCC is not new; the country previously benefited from a US$28 million Threshold Program that concluded in 2021. That program focused on improving secondary education and strengthening tax and customs administration, as well as supporting infrastructure projects through public-private partnerships—such as the tender to upgrade 44 kilometers of the CA-9 highway between Puerto Quetzal and Escuintla. In December 2025, the MCC Board selected Guatemala to develop a new Threshold Program—currently in the development stage—because of the historic cooperative relationship between the two nations and the Guatemalan government’s commitment to economic modernization. In February 2026, the MCC conducted an initial mission to Guatemala to validate the analysis of key constraints on the country’s economic growth, aiming to finalize the program design during the first half of fiscal year 2027 and thereby solidify new opportunities for cooperation and institutional reform to drive Guatemala’s economic growth.
Honduras Reverses Its Fiscal Balance and Records a Historic Surplus
Honduras’s Central Government closed the first half of 2026 with a fiscal surplus of US$89.8 million, reversing the US$223.6 million deficit seen during the same period in 2025, according to the Central Bank of Honduras. This positive outcome was driven primarily by a rise in tax revenue—which grew by US$365.2 million—with notable contributions from sales and income taxes. Total Central Government revenue reached US$3,809.3 million, US$241.5 million more than the previous year. On the expenditure side, employee compensation was the largest component, followed by real investment, which rose by US$82.6 million. Although domestic debt increased to US$9,295.6 million due to new issuances of government bonds and treasury bills, this financing enabled the maintenance of public investment. This positive fiscal result confirms an improvement in the management of Honduras’s public finances, bolstering market confidence in the country’s economic sustainability.
United States Boosts Access to Credit for Honduran MSMEs
The U.S. International Development Finance Corporation (DFC) has approved a US$10 million loan for the financial institution MiCrédito to expand access to financing for micro, small, and medium-sized enterprises (MSMEs) in Honduras. At least 50% of these funds will support trade between the United States and Honduras by purchasing U.S. goods and services, thereby strengthening bilateral supply chains. The approval was formalized at a ceremony in Washington attended by DFC Head of Policy Caroline Vik and MiCrédito Regional Executive Director Verónica Herrera, alongside the Honduran Minister of Finance and the President of the Central Bank of Honduras. MiCrédito, which has operated in Honduras since 2023, currently has 26 branches and over 15,200 credit clients—primarily micro and small business owners in sectors such as commerce, services, and agriculture. This new financing facility will expand access to U.S. agricultural inputs and manufactured goods—such as tractors, irrigation systems, and fertilizers—creating new growth opportunities for thousands of small Honduran businesses.
Honduras Promotes the Reactivation of a Key Airport for Archaeological Tourism
The President of Honduras, Nasry Asfura, announced the reactivation of the Río Amarillo airport, in the department of Copán, as part of a strategy to improve air connectivity and strengthen tourism to one of the country’s main archaeological destinations. The Honduran Airport Infrastructure and Services Company (EHISA) will make the investments needed to ensure the terminal is operational; the facility will facilitate the transport of tourists to Copán Ruinas, a UNESCO World Heritage site. The government also plans to engage with air carriers interested in operating routes to the airport once the necessary conditions are met. This initiative is part of a broader set of projects to strengthen tourism in the region, including studies to open a fourth land border crossing with Guatemala and the construction of a new visitor center at the archaeological site. Increased air connectivity is expected to stimulate sectors such as hotels, restaurants, retail, and tour operators, thereby establishing western Honduras as a destination with improved accessibility and greater potential for tourism investment.
Nicaragua Maintains Stable Interest Rates Supported by Solid Economic Fundamentals
The Central Bank of Nicaragua (BCN) decided to keep interest rates on its financial operations stable, maintaining the Monetary Policy Reference Rate at 5.75%, the institution reported. The BCN highlighted that the Nicaraguan economy is sustaining its growth trajectory, driven by most productive activities, domestic demand, merchandise exports, and robust private-sector credit growth. The labor market continues to show a low unemployment rate, while domestic inflation is expected to remain low and stable, supported by balanced monetary and fiscal policies. The Central Bank noted that monetary policy has ensured the stability of the national currency by strengthening international reserves, while domestic monetary conditions foster strong performance in financial intermediation. This decision reflects the soundness of Nicaragua’s macroeconomic fundamentals, supporting a stable environment conducive to investment and economic development amid an international context marked by geopolitical uncertainty.
BLPodcast.
Contracts Under Pressure [Spanish audio · English subtitles]
What happens when a public contract is no longer economically viable? In this episode, we analyze when a loss is part of business risk and when it may justify a claim for adjustment, unforeseeable circumstances, or disruption of the economic and financial balance.
We discuss the importance of correctly identifying the cause of the problem, preserving evidence from the very first event, and building claims supported by documentation, quantification, and a coherent legal strategy. The difference between a loss and a viable claim often lies in the cause, the notice, and the evidence.
📩 If you’d like to discuss this topic, please email us at [email protected].
BLP INSIGHT
Reform to the General Public Procurement Law: New Labor Requirements
The Legislative Assembly of Costa Rica has approved, in a second vote, a reform to the General Public Procurement Law that strengthens labor, social security, and occupational risk obligations applicable to bidders and contractors working with the Public Administration. Key changes include stricter requirements regarding the CCSS (Social Security), FODESAF (Social Development and Family Allowances Fund), the INS (National Insurance Institute), and other labor-related obligations, as well as new penalties for non-compliance concerning wages, the mandatory year-end bonus (locally called aguinaldo), working hours, occupational risk insurance policies, and social security contributions. Such non-compliance could even disqualify a bid during the procurement process or terminate the contract. The reform thus underscores the importance of labor compliance as a decisive factor for securing, maintaining, and executing business with the State; consequently, companies must strengthen their internal controls and mechanisms for the preventive management of these risks.
Costa Rica pauses its Public-Private Partnership Law: key takeaways for companies
The Constitutional Chamber of Costa Rica declared several core articles of the proposed Framework Law on Public-Private Partnerships unconstitutional, under Legislative File No. 24.009. As a result, the bill returns to the Legislative Assembly for corrections before a potential second debate. The main constitutional concerns relate to the autonomy of public institutions, the sanctions regime, access to justice and equal treatment among bidders. While the ruling does not prevent the law from being approved, it creates uncertainty around the institutional framework, bidding procedures and timelines for future PPP projects. In the meantime, companies with infrastructure or financing projects in the country should continue structuring them under the current public works concession regime and closely monitor the legislative process as the Assembly revises the bill.
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 | 452.56 | 3.65% | 3.00% | BB | Ba2 | BB | -0.17% |
| El Salvador | 8.75 | 4.61% | N/A | B- | B3 | B- | 3.19% |
| Guatemala | 7.62 | 4.63% | 3.50% | BB+ | Ba1 | BB+ | 3.37% |
| Honduras | 26.86 | 7.03% | 5.75% | BB- | B1 | N/A | 5.58% |
| Nicaragua | 36.62 | 1.31% | 5.75% | B+ | B2 | B | 4.00% |
09/09/2026 | Source: secmca.org
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