BLP’s summary of the most important regional news and opportunities offers an overview of the economic, social, and political landscape of Central America & Venezuela at just a click away.
The United Arab Emirates Deepens Its Strategic Interest in Latin America, with Costa Rica as a Key Partner
The United Arab Emirates views Latin America as a region of “enormous potential” with “growing ambition” to explore new markets and investment opportunities, according to Reem al Hashimy, the UAE’s Minister of State for International Cooperation. She noted that Costa Rica signed an economic partnership agreement with the UAE in 2024, establishing itself as one of the Latin American partners with the most advanced ties, alongside Chile and Colombia. Al Hashimy pointed out that her country’s interest spans sectors such as energy, ports, airports, railways, food, agriculture, technology, and artificial intelligence, with a vision for long-term cooperation. She emphasized that the UAE’s approach is pragmatic and seeks to build lasting ties between people and businesses, supported by governments that facilitate such cooperation. This growing interest from the United Arab Emirates opens up new foreign investment opportunities for Costa Rica and the Central American region in strategic, high-value-added sectors, strengthening the diversification of their international economic relations.
Costa Rica Maintains Diversified Export Growth
Costa Rica’s exports of goods reached US$15,680 million in the first eight months of 2026, a 4% increase compared to the same period in 2025, according to the Ministry of Foreign Trade. Minister Indiana Trejos noted that this performance is favorable given the international context marked by geopolitical and trade uncertainty. Medical devices remained the leading export product, with sales of US$7,286 million, accounting for 46% of the total, while the electrical and electronics industry recorded the highest sectoral growth, at 18%. Pineapples and bananas solidified their positions as the next most important products, with exports nearing US$900 million each. PROCOMER’s general manager, Laura López, highlighted that this growth reflects the diversity of Costa Rica’s export portfolio, combining leadership in high-tech sectors with the positive performance of traditional industries such as agriculture. By market, Asia showed the strongest growth at 25%, followed by Europe at 10% and Central America at 9%, confirming the successful diversification of trade destinations for Costa Rican exports.
Costa Rica Establishes a Clear Framework for Strategic Tax Exemptions
The Government of Costa Rica submitted to the Legislative Assembly the bill titled “Law on Tax Benefits and Control of Tax Expenditures,” which proposes a general repeal of tax exemptions while maintaining certain strategic exceptions. Among the exemptions that would remain in effect are those related to public works projects under a trust agreement, such as the San José-San Ramón highway corridor and the San José-Cartago highway corridor, as well as incentives for tourism development and those established in the Free Trade Zone Act. The bill also provides for maintaining tax benefits for sectors with proven positive effects on production, employment, and competitiveness, including the importation of agricultural machinery and equipment, medical and orthopedic equipment, and essential medicines. This proposal seeks to balance the need to strengthen tax revenue collection with the preservation of key incentives that support strategic sectors such as tourism, free trade zones, and road infrastructure. This regulatory framework provides greater clarity and predictability for investors operating under these special regimes in Costa Rica.
Costa Rica Is Emerging as a Leader in Sustainable Construction with Proven Financial Returns
Building sustainably does not necessarily entail a significantly higher initial investment, according to studies compiled by Johnson Controls, which show that projects with sustainability goals incorporated from the design phase can maintain a cost difference of less than 1% compared to conventional construction. Eighty-three percent of the cases analyzed reported a return on investment in sustainability within one to five years, shifting the discussion toward the property’s financial performance over its entire lifespan. According to Brigitte Solís Wolffson, Johnson Controls’ manager of Sustainability and Healthy Buildings for Latin America, Costa Rica’s track record in environmental management and renewable energy creates favorable conditions for expanding this discussion within the country’s real estate sector. The study highlights the importance of certifications such as LEED, WELL, and EDGE for evaluating building performance, as well as the integration of sustainability from the earliest stages of design and development. This perspective solidifies Costa Rica’s position as an attractive market for investment in sustainable construction, strengthening its standing as a regional leader in responsible, long-term real estate development.
Costa Rica Holds Interest Rate Steady, Adopting a Cautious Stance Amid External Risks
The Central Bank of Costa Rica decided to keep its monetary policy rate at 3% annually following its fifth monetary policy meeting of 2026, prioritizing a cautious stance in light of external risks that could put additional pressure on prices. Central Bank President Roger Madrigal explained that factors such as tensions in the Middle East, the conflict between Russia and Ukraine, and the potential effects of the El Niño phenomenon could impact international commodity prices in the coming months. The decision comes at a time when inflation remains in negative territory, standing at -0.17% year-over-year in August, below the tolerance range of the 3% target set by the Central Bank. The Monthly Economic Activity Index recorded 2.5% year-over-year growth in July, while average production growth stood at 3.6% so far this year. This decision reflects the Central Bank’s commitment to macroeconomic stability, while maintaining room for future adjustments as domestic and external conditions evolve, with the next review scheduled for November 26.
CAF Supports Progress on Two Strategic Megaprojects in El Salvador
Salvadoran President Nayib Bukele met with Sergio Díaz-Granados, CEO of CAF—the Development Bank of Latin America and the Caribbean—to review progress on the construction of the Pacific International Airport and the modernization of schools, projects financed by the multilateral organization. Díaz-Granados emphasized that CAF is prepared to continue mobilizing its own financial resources and those of its partners to support new investments in El Salvador, particularly in areas where the country seeks to deepen transformations already underway. The Pacific International Airport, currently under construction in Conchagua, La Unión, is funded through the “El Salvador Vuela” program, which has a US$320 million portfolio aimed at strengthening the country’s air connectivity, tourism, and competitiveness. During the visit, the president of CAF also toured the OEI School in Santa Tecla, part of a US$400 million program to modernize the education system, which includes physical and digital infrastructure, technological equipment, and teacher training. The multilateral bank confirmed that it will continue to support this educational program with financing and technical assistance, consolidating a strategic partnership that strengthens the development of key infrastructure for El Salvador.
El Salvador Launches a Digital Platform to Revolutionize Remittances from the United States
The Government of El Salvador and the U.S. technology firm Modveon launched Sivar, a digital platform that will enable cross-border money transfers from the United States for a flat fee of US$2, regardless of the amount sent. The initiative operates under a five-year agreement between the company and the Bitcoin Fund Management Agency, with Modveon responsible for the development and operation of the app. This platform is aimed directly at the family remittance market, a key driver of the Salvadoran economy that in 2025 generated nearly US$9 billion, 92% of which came from the United States and benefited 1.6 million people. Funds are settled using digital dollars on the Base blockchain network, developed by Coinbase, which also serves as an infrastructure partner and investor in Modveon. Modveon CEO Nana Murugesan highlighted that the tool has already undergone a successful pilot phase involving more than 25,000 Salvadorans, while Deputy Minister of Foreign Affairs Adriana Mira noted that the project seeks to strengthen ties with the diaspora through accessible technology. This innovation paves the way for new opportunities to reduce costs and streamline the flow of remittances to El Salvador.
El Salvador Makes a Strong Debut on the Global Startup Ecosystem Index
El Salvador made its first appearance on the Global Startup Ecosystem Index, compiled by the StartupBlink platform, ranking 80th out of 100 countries evaluated worldwide—the highest position among the countries returning to the index. The country leads Central America in the “ecosystem brand value” category, reflecting the appeal, maturity, and visibility of its tech business environment, and ranks third in Latin America for ecosystem visibility. San Salvador ranked as the top Central American city in the index, placing 297th globally, with 26.1% growth—above the regional average. The report highlights Salvadoran startups such as Hugo App, acquired by Delivery Hero, and the arrival of Tether in the country. Héctor Mancía, Deloitte’s lead partner for El Salvador, noted that the country has regulatory frameworks such as the Law on the Promotion of Innovation and Technology Manufacturing, which offers tax incentives for up to 15 years for new investments in programming, artificial intelligence, and hardware, thereby strengthening legal certainty and the country’s appeal to foreign capital.
ECLAC Identifies Significant Export Potential for El Salvador to Mexico
ECLAC identified 46 high-priority Salvadoran products with export potential to Mexico, according to a study that combines national export capacity, Mexican demand, and market access conditions. The analysis evaluated 185 subheadings related to El Salvador, finding that approximately one-quarter present particularly favorable conditions for capitalizing on trade opportunities. Medium-technology manufactured goods account for 59% of El Salvador’s exports to Mexico, while the country also has capabilities in sectors such as textiles, apparel, and footwear. This potential is all the more significant given that Mexico received just 2.3% of El Salvador’s total exports in 2024, indicating ample room to diversify trade destinations. Salvadoran exporters also benefit from favorable tariff conditions, with Mexico applying an effective tariff rate of just 1.16%. This study highlights a strategic diversification opportunity for Salvadoran companies into one of the region’s largest import markets, which purchased US$697,629 million in goods during 2024, opening up new possibilities for trade growth for El Salvador.
Guatemala Keeps Its Key Interest Rate Steady to Maintain Favorable Financial Conditions
Guatemala’s Monetary Board kept the key interest rate at 3.50%, a decision that maintains current financial conditions and prevents additional pressure on borrowing costs for households and businesses. The decision was made against a backdrop of continued global economic growth, driven by manufacturing, services, and investment in artificial intelligence-related technology. Domestically, Guatemalan economic indicators remain on track with the growth forecast for 2026, between 3.3% and 5.3%. The Monetary Board emphasized that inflation is expected to remain within the target range by the end of 2026 and 2027, given that current risks are contained, which is why it opted to maintain the stability of the rate. This technical decision sends a message of calm and confidence, reaffirming the Bank of Guatemala’s commitment to price stability and favorable monetary conditions for the country’s economic development.
Guatemala Hosts a Taiwanese Business Delegation to Strengthen Economic Cooperation
Taiwan’s Minister of Foreign Affairs, Lin Chia-lung, visited Guatemala alongside a business delegation comprising more than 30 representatives from sectors such as green energy, artificial intelligence, and biotechnology, as well as the U.S.-Taiwan Business Council, with the aim of strengthening bilateral economic cooperation. During his visit, the Taiwanese foreign minister met with Guatemalan President Bernardo Arévalo and inspected several Taiwan-funded projects in the country. This visit is part of Taiwan’s efforts to strengthen its ties with its diplomatic allies in the region, including the recent expansion of its Trade Office for Central America. The presence of representatives from strategic sectors such as green energy and biotechnology opens up new opportunities for technical cooperation, knowledge transfer, and investment for Guatemala in high-value-added industries. Such initiatives strengthen the diversification of Guatemala’s economic relations and consolidate new development opportunities in technology and innovation sectors for the country.
Guatemala Modernizes Its Tax System by Unifying the CUI and the NIT
Guatemala’s Superintendency of Tax Administration confirmed that the new provision unifying the DPI’s Unique Identification Code (CUI) with the Tax Identification Number (NIT) for Guatemalan taxpayers is now in effect, following the Constitutional Court’s ruling published on September 23. Since October 2023, all new individual taxpayers have received the first nine digits of their CUI as their NIT, and with the Constitutional Court’s approval, the SAT will complete the harmonization to the full 13 digits. As explained by tax expert Óscar Chile Monroy, taxpayers who registered before October 2023 will have the change made automatically by the SAT, without the need for any additional paperwork. This modernization will make the DPI the only tax document required to access the Virtual Agency, electronic invoicing, and tax returns. This administrative simplification enhances the efficiency of the Guatemalan tax system, streamlining procedures for citizens and businesses, and fostering a more agile environment for meeting tax obligations in the country.
Honduras Strengthens Its International Cooperation and Investment Agenda in New York
Honduran President Nasry Asfura held high-level meetings in New York on the sidelines of the United Nations General Assembly to expand international cooperation and promote new investments. Among the key meetings was a bilateral meeting with UN Secretary-General António Guterres, during which they discussed Honduras’ priorities in areas related to development, investment, and the creation of opportunities. The president’s agenda also included a meeting with representatives of the Atlantic Council, during which they analyzed opportunities for Honduras in the areas of investment, energy, and international cooperation, with an emphasis on partnerships that contribute to the country’s economic development. These meetings were complemented by dialogue sessions with representatives of the international financial sector and discussion forums on Honduras’ economic outlook. This international agenda aims to expand the country’s ties with international organizations and private-sector actors, promoting cooperation and investment that create new jobs and opportunities for Hondurans.
Honduras Is Pushing for an Ambitious Expansion of Its Shrimp Exports to China
Honduras officially launched the 2026 Honduran Shrimp Export Program to China, an initiative that aims to exceed 100 containers shipped to that market by the end of the year. The program was presented in San Lorenzo, Valle, with the participation of companies from the aquaculture sector and Chinese representatives. The first phase calls for the shipment of 1.2 million kilograms of shrimp—equivalent to about 60 containers—with projections indicating that this could generate more than 350 million lempiras in foreign exchange for the country. The Chinese trade mission reported that Honduras has already exceeded 500 metric tons exported to that market in 2026, with a goal of reaching approximately 2,000 metric tons by the end of the year. This growth is driven by the Early Harvest Agreement between the two countries, under which China granted zero-percent tariff treatment to Honduran shrimp. By the end of May 2026, Honduras had already exported 29 million pounds of shrimp, generating US$113 million in foreign exchange, and by 2027, producers and companies plan to expand their production and logistics capacity to sustain higher export volumes to Asia, thereby diversifying the markets for one of the country’s main aquaculture products.
The CCIT Proposes Strengthening Strategic Sectors to Reduce Honduras’s Dependence on Remittances
Paola Díaz, executive director of the Tegucigalpa Chamber of Commerce and Industry, highlighted the need to strengthen the productive sector, tourism, and construction in Honduras in light of a possible future decline in the flow of family remittances. Díaz emphasized the importance of processing raw materials to generate greater value-added in exports, citing as an example the possibility of exporting chocolate instead of unprocessed cocoa, which would generate higher foreign exchange earnings. The Honduran economy received US$9,047.3 million in family remittances through September 3, 2026, an 11.4% increase compared to the same period in 2025, according to the Central Bank of Honduras. The business leader emphasized the need to continue strengthening the financial system, the tourism industry, and the national productive sector as pillars that complement remittances. This strategic vision seeks to diversify the country’s sources of foreign exchange earnings, strengthening Honduras’ economic resilience and consolidating new investment opportunities in sectors with high potential for growth and value-added generation.
Honduras Advances in Modernizing Its Labor Framework to Strengthen Formal Employment
The Labor and Trade Union Affairs Committee of the Honduran National Congress began reviewing the Part-Time Employment Act, analyzing comments raised by the private sector with the aim of improving its implementation and contribution to the creation of formal jobs. The committee’s chair, Representative Alberto Cruz, explained that the private sector will formally present its proposals in the coming days to begin a process of consultation with the various stakeholders. Among the comments raised is the possibility of adjusting the minimum number of hours that can be contracted per week, especially for technical professionals who provide services at different establishments. The committee is also exploring the possibility of creating special provisions within the Labor Code for emerging sectors such as the digital economy, the creative industries, and call centers, taking into account the new forms of employment that have emerged in recent years. This legislative review also seeks to extend the deadlines for labor registration for small business owners without administrative departments, thereby strengthening a regulatory framework that is more flexible and better adapted to the new dynamics of the Honduran labor market.
Nicaragua Marks Five Years of Sustained Economic Growth
The Nicaraguan economy continued its expansionary trend with an estimated growth rate of 4.1% in the first half of 2026, according to Ovidio Reyes, president of the Central Bank of Nicaragua. This result is in line with the institution’s projected growth range for the year—between 3.5% and 4.5%—consolidating five consecutive years of expansion with an average of nearly 4.5%. The country’s international reserves reached a historic high of US$9.95 billion, while foreign direct investment totaled more than US$960 million during the first six months of the year. The construction sector stood out in particular, with growth of 16.7% in the first quarter and 30.4% in the second, driven by both public and private investment and complemented by strong performance in retail, hotels and restaurants, and communications. In the labor market, the unemployment rate stands at 3.1%, reflecting that 97% of the working-age population is employed, consolidating a cycle of macroeconomic stability that bolsters the confidence of families and investors in Nicaragua.
The United States Relaxes the Regulatory Framework for New Energy Investments in Venezuela
The Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury expanded the number of authorized transactions in strategic sectors in Venezuela, replacing three general licenses related to oil, the supply of goods and services, and new investments. General License 498 authorizes the negotiation and signing of conditional contracts for projects related to oil, gas, petrochemicals, and electricity, allowing interested companies to conduct commercial, legal, technical, environmental, and safety studies to evaluate these projects. General License 46E allows U.S. companies incorporated before 2025 to engage in the extraction, marketing, export, storage, transportation, and refining of Venezuelan oil, as well as maritime transport, insurance, and logistics services. For its part, General License 48D expands the range of technology and services that can be supplied from the United States for energy activities, including the electricity sector in generation, transmission, and distribution. This regulatory update opens up new possibilities for negotiating investments in Venezuela’s strategic energy sectors, although it maintains a separate, subsequent approval process for the final implementation of the agreements.
The Venezuelan Automotive Sector Shows Signs of Recovery Despite Structural Challenges
The Venezuelan Automotive Chamber revealed that the national vehicle fleet, consisting of nearly 3.5 million units, has an average age of 22 years—a situation the association aims to address through solutions to renew the fleet. Cavenez Executive President Eduardo Cáceres noted that the 20 brands represented by the chamber have recorded sustained growth in the domestic market since 2023, which he considers positive news reflecting the overall revival of the Venezuelan economy. The association seeks to establish working groups with government institutions to evaluate the tax burden that affects the final price of vehicles, which includes import costs, port and municipal fees, as well as a customs duty ranging from 20% to 40% depending on engine displacement. Cáceres noted that there are viable options for gradually reducing the cost of new vehicles through adjustments to this tax structure. This dialogue between the private sector and the government paves the way for reforms that could further revitalize the Venezuelan automotive market and make it easier for consumers to access new vehicles.
BLP INSIGHT
Costa Rica and Guatemala Remove Requirement for Sanitary Registration of Processed Foods
Resolution No. 502-2026 of the Council of Ministers of Economic Integration (COMIECO) amends RTCA 67.01.31:20 and provides that, in Costa Rica and Guatemala, the requirement to submit documentation related to third-party manufacturing contracts does not apply to certain sanitary registration procedures for processed foods. The amendment was adopted on July 3, 2026 and has been in force since that date. This change simplifies the documentary requirements applicable to products manufactured by third parties and should be considered when preparing new sanitary registration applications or reviewing ongoing procedures in both countries. In Panama, the amendment will only apply once COMIECO approves the corresponding administrative act.
Fintech as a Catalyst for Financial Inclusion in Honduras
The Honduran fintech ecosystem continues to expand, driven by growing demand for digital financial services, a population still underserved by the traditional financial system, and an evolving regulatory framework. Solutions such as digital microloans, e-wallets, payment platforms, and remittance-related services are broadening access to financial products, particularly in communities with limited traditional banking infrastructure. Decree No. 83-2021 and the regulations developed by the Central Bank of Honduras have helped establish a framework for payment and transfer services using electronic money, while initiatives such as the Financial Innovation Roundtable promote innovation and inclusion within parameters of oversight and security. According to the World Bank’s Global Findex, approximately 45% of Honduran adults had a financial account in 2021, highlighting the sector’s growth potential and the opportunity for fintech companies to continue transforming access to financial services in the country.
BLP NEWS
BLP Expands Its Regional Platform with a Representative Office in Venezuela
BLP announces the opening of a representative office in Venezuela, with operations scheduled to begin in November 2026, in response to growing interest from regional and international companies and investors in evaluating opportunities in the country. The new presence will strengthen the firm’s ability to support cross-border transactions and provide advisory services with local expertise in sectors such as energy and hydrocarbons, mining, infrastructure, telecommunications, insurance, banking and finance, and mergers and acquisitions. The Caracas office will become part of BLP’s regional platform, which has a presence in Central America and representative offices in Spain and the United Arab Emirates. Luis Palacios, a director at BLP, will be based in Venezuela and will serve as one of the firm’s primary points of contact in the country.
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 | 454.78 | 3.56% | 3.00% | BB | Ba2 | BB | -0.17% |
| El Salvador | 8.75 | 4.60% | N/A | B- | B3 | B- | 3.19% |
| Guatemala | 7.64 | 4.63% | 3.50% | BB+ | Ba1 | BB+ | 3.37% |
| Honduras | 26.89 | 6.81% | 6.00% | BB- | B1 | N/A | 6.20% |
| Nicaragua | 36.62 | 1.14% | 5.75% | B+ | B2 | B | 4.00% |
01/10/2026 | Source: secmca.org
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