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 Boosts Exports Through Diversified Growth Across All Markets
Costa Rica’s goods exports reached US$13,821 million between January and July 2026, up 5% from the same period in 2025, according to PROCOMER. The precision and medical equipment sector remained the leading export sector, with sales of US$6,399 million, followed by the agricultural sector and the food industry, which also posted solid growth. Market diversification stood out as one of the period’s most notable trends: Asia recorded the highest percentage growth, with a 31% increase, while Europe grew by 10%, driven by products such as bananas, which found new trade opportunities in destinations like Algeria. Exports from the free trade zone grew by 4% to US$9,309 million, while exports under the definitive regime totaled US$4,375 million, an 8% increase. According to PROCOMER General Manager Laura López, this performance reflects the Costa Rican export sector’s ability to adapt to changes in international trade and find new opportunities in diverse markets, thereby strengthening the country’s economic stability and competitiveness.
ECLAC Confirms Solid Growth for Costa Rica in 2026
The Economic Commission for Latin America and the Caribbean (ECLAC) maintained its growth projection for Costa Rica at 3.7% for 2026, a figure higher than the 3.4% projected by the Central Bank of Costa Rica. According to the Economic Survey of Latin America and the Caribbean 2026, the country ranks alongside Nicaragua, Argentina, Panama and Guatemala among the region’s most dynamic economies. For 2027, ECLAC projects 3.9% growth for Costa Rica, consolidating a trajectory of sustained growth. The agency noted that the colón’s appreciation against the dollar is due to increased foreign exchange inflows from foreign direct investment and growth in Costa Rican exports. Regarding inflation, ECLAC maintains its expectation of a gradual convergence toward the Central Bank’s target range over the next 24 months. These projections confirm Costa Rica’s macroeconomic strength and its sustained appeal for foreign investment within the regional landscape.
Costa Rica Reaches Record Levels of Foreign Exchange Reserves, Strengthening Its Financial Buffer
The Central Bank of Costa Rica reported international reserves of US$20,786.6 million as of August 17, 2026, considerably higher than the US$14,802.3 million recorded on the same date the previous year and nearly three times the level recorded in 2022. This increase is due to the Central Bank’s net foreign exchange purchases, the rise in foreign currency deposits held by financial institutions and the Ministry of Finance, and the return generated by the reserves themselves, which reached 4.89% in 2025. The net international reserves monitoring indicator stood at 173.5% of the minimum adequate level defined by the Central Bank’s Board of Directors, above the range recommended by the International Monetary Fund. These funds are invested primarily in conservative instruments, such as high-credit-rated government bonds, with 66% concentrated in the United States, Asia, and the Eurozone. This strong financial buffer helps Costa Rica weather external shocks and maintain economic stability in a changing international environment.
Costa Rica Partners with Google to Promote Artificial Intelligence in the Public Sector
Costa Rica’s Ministry of Science, Innovation, Technology, and Telecommunications signed a collaboration agreement with Google Cloud to apply artificial intelligence to the services provided by the country’s public institutions. President Laura Fernández contends the partnership will enable the use of artificial intelligence in sectors such as education, health, and security. At the same time, MICITT Minister Paula Bogantes noted that its application to urban mobility is also being considered. The minister emphasized that the agreement aims to advance governmental digitization and improve the efficient use of public resources. Google’s Director of Strategic Initiatives, Ana Recalde, also participated in the announcement, reflecting the tech company’s interest in strengthening its presence in the country. This strategic alliance strengthens Costa Rica’s position as an attractive destination for technological innovation, reinforcing its status as a regional leader in integrating artificial intelligence into public services.
Costa Rica Makes Progress on Modernizing Key Road Infrastructure for Tourism
Two strategic projects are underway in Guanacaste and Puntarenas to improve road connectivity to the country’s major tourist destinations. The new bridge over the Guacimal River, on the route connecting the northern Inter-American Highway with Monteverde, is 85% complete and is expected to open in September, with an investment of ¢680 million. Meanwhile, in Guardia de Liberia, construction has begun on the first of two new bridges over the Tempisque River, which will expand the route to four lanes and improve connectivity with communities such as Playa Panamá, Filadelfia and Nandayure, with a total investment of ¢2,683 million. These structures, designed using the Waagner-Biró modular steel system, will each be 121.5 meters long, and the first is expected to become operational in 2027. These road infrastructure projects strengthen connectivity to strategic tourist areas in Costa Rica, improving access for visitors and contributing to the economic and tourism development of these regions.
El Salvador Launches an Ambitious Education Initiative with a Record Investment
El Salvador announced a more than US$3 billion investment in higher education, equivalent to 8% of GDP, as President Nayib Bukele reported in a meeting with students at the National Stadium. The program includes awarding 50,000 scholarships to young people seeking to pursue university studies, technical training, and vocational courses, with plans to gradually expand this number in the coming years. To ensure the program’s sustainability, the Salvadoran government signed an agreement with the Inter-American Development Bank, which will contribute US$100 million to finance the scholarships over the long term, ensuring the program extends beyond individual budget cycles. The initiative has significantly expanded the participation of educational institutions: 35 universities in the country are now part of the program, up from the initial 10. This strategy is part of a comprehensive education policy spanning from early childhood through vocational training, consolidating a strategic investment in human capital that strengthens El Salvador’s opportunities for economic and social development.
El Salvador Takes a Decisive Step Toward a New Era of Digital Connectivity
CAF, the development bank for Latin America and the Caribbean, launched a call for proposals to conduct studies for the first submarine cable connecting El Salvador directly to the global internet network, as part of a project backed by US$145 million in sovereign financing. The selected consulting firm will work alongside the General Superintendency of Telecommunications during the study and design phase, identifying risks and opportunities to maximize the benefits of this new infrastructure. Currently, El Salvador has between 4 and 5 terabits per second of international capacity, a figure projected to triple with the new infrastructure and reach four times the current level within the next five years. This project aims to expand connectivity capacity, reduce costs and create favorable conditions for the development of data centers, telehealth services and distance learning. The project, which will span 1,800 kilometers and become operational in the second half of 2028, was awarded to Liberty Networks in 2025, representing a strategic investment that will strengthen El Salvador’s digital transformation and technological competitiveness.
The Salvadoran Diaspora Boosts the National Economy with Record Investment
The Salvadoran diaspora committed to 19 investment projects totaling US$107.12 million between June 2025 and May 2026, according to the Investment and Export Promotion Agency (Invest). These projects are expected to create 2,474 jobs, eight more projects than in the previous period. Invest provided 180 advisory and support services through its Salvadoran Diaspora Investment Division, offering information, field visits and assistance with administrative procedures to potential investors. The agency plans to continue strengthening this support to increase the diaspora’s confidence and participation, which could lead to a sustained increase in inquiries and investment projects in the medium term. This momentum confirms the increasingly important role of Salvadorans abroad as agents of economic development, complementing the flow of remittances with direct investment that creates jobs and strengthens the country’s business sector.
El Salvador’s Airport Builds on Its Momentum with More Than 3 Million Passengers in 2026
El Salvador International Airport handled 3,144,811 passengers between January and July 2026, according to statistics from the Autonomous Executive Port Commission. Of the cumulative total, 1,235,503 passengers departed the country and 1,204,824 arrived through the airport, while 669,115 travelers transferred flights, reflecting the airport’s role as a regional hub. During this period, July was one of the busiest months, recording a significant number of commercial aviation operations, including landings and takeoffs. In terms of cargo, the terminal handled more than 23.1 million kilograms, with the highest levels of logistics recorded in June. These figures confirm the Salvadoran airport’s strong operational performance, solidifying its importance as a key component of the country’s air and logistics connectivity and reinforcing investment opportunities in airport infrastructure and related services.
The Construction Boom Drives Strong Growth in El Salvador’s Insurance Sector
El Salvador’s insurance sector closed the first half of 2026 with 6.7% growth, driven by the construction industry’s dynamism, according to Ana Yansi Montano de Figueroa, president of the Salvadoran Association of Insurance Companies. At the end of the period, premiums paid by households and businesses reached US$505.5 million, with particularly strong performance in property and casualty insurance linked to housing and tourism projects under development in the country. The sector also projects growth in life insurance, driven by robust credit growth, and in the auto insurance segment, in line with the expansion of the vehicle fleet. Insurance companies have paid out more than US$215.4 million in claims and maintain more than US$352.7 million in contingency reserves. The president of ASES highlighted that the sector’s premiums have grown 44% since 2019, consolidating the sector as a dynamic industry that contributes significantly to the national economy, with growth projections of between 5% and 6% by the end of 2026.
Guatemala Is Driving Historic Expansion of Its Electricity Infrastructure
Guatemala faces the strategic challenge of modernizing its electricity transmission grid to keep pace with the growth of its generation capacity, according to regulators, transmission operators, and power generators in the sector. The country’s power grid grew from 470 kilometers in 2015 to nearly 6,793 kilometers in 2025, a significant increase that now needs to be doubled through an Expansion Plan involving an investment of between US$2.5 billion and US$3.0 billion, with an additional 5,000 kilometers of transmission lines and more than 200 new substations. This challenge takes on special significance following the success of PEG-5, the largest electricity tender in Guatemala’s history, which contracted 1,258 megawatts of energy, mostly from renewable sources, consolidating a structural shift toward clean technologies that will shape the country’s energy mix over the next 15 years. The sector agrees on the urgent need to launch the next Transmission System Expansion Plan (PET-4) to ensure the transmission infrastructure is ready when the new generation capacity comes online. With a robust grid, Guatemala also has the opportunity to position itself as a strategic electricity hub between Mexico and Central America, fostering new investment opportunities in regional energy infrastructure.
Guatemala Consolidates Solid Economic Growth Amid a Challenging International Context
Guatemala’s economic activity posted cumulative growth of 4.4% through June 2026, up from 3.9% in the same period the previous year, according to data from the Bank of Guatemala. In June alone, the Monthly Economic Activity Index reported a 4.2% year-over-year expansion, driven primarily by trade, vehicle repair, manufacturing, and real estate activities, along with the financial sector and agriculture. President Bernardo Arévalo described the result as “an excellent figure,” noting that it takes on greater significance against an international backdrop marked by uncertainty and trade tensions. The president linked this performance to increased resources available for infrastructure projects and social programs, further emphasizing that transparency in public administration is key to strengthening confidence and attracting new investments. This sustained growth confirms the resilience of the Guatemalan economy and consolidates a favorable environment for job creation and new development opportunities in the country.
Guatemala Is Proceeding with the Transformation of the Quetzaltenango Aerodrome into an International Airport
The process of converting the Quetzaltenango Aerodrome into an international airport is moving forward with new steps, as part of an initiative to expand Guatemala’s air connectivity and create new economic opportunities for the country’s western region. The project, included in the Airfield Master Plan, involves a five-stage certification process, currently in its first phase of documentation and pre-application, which authorities estimate could be completed between late August and mid-September 2026. This transformation represents a strategic commitment to strengthening economic activity in Quetzaltenango by facilitating the arrival of foreign visitors, promoting trade, and attracting new investment to the region. The impact could also extend to the export sector, offering better logistics options for moving goods to other international markets. For the authorities, this project is strategically important to tourism, logistics, education, health, and business, establishing a new gateway for investment in western Guatemala.
Guatemala’s Move Toward Implementing Number Portability Is Pending
President Bernardo Arévalo confirmed that the regulations for the Number Portability Law are now with the General Secretariat of the Presidency, bringing the country closer to implementing this measure that will allow telephone users to switch providers without losing their current number. This initiative aims to facilitate competition among telecommunications companies and reduce one of the main barriers consumers face when changing providers. The file has completed its technical review at the Superintendency of Telecommunications and the Ministry of Communications, and is now moving toward formal approval through a government agreement. Once the regulations take effect, a Portability Committee will be formed, comprising telephone operators and the Superintendency, and an administrator will be selected for the centralized database, which will be financed by the companies themselves. This measure will strengthen competition in the Guatemalan telecommunications sector, benefiting consumers with greater freedom of choice and better service conditions.
Honduras Boosts Exports, Led by Strong Performance in Coffee and Bananas
Honduras’s goods exports reached US$6,899.6 million at the end of the second quarter of 2026, driven primarily by an 11% increase in general merchandise, according to the Central Bank of Honduras. Coffee solidified its position as the leading export product, with sales of US$1,883.2 million and a 21% increase in export volume, primarily destined for the United States, Germany, and Belgium. Bananas also performed well, with exports totaling US$249.9 million and growth of 37.1%, driven by higher volumes and better international prices. Other notable products included recycled materials, which grew by 64.6%; palm oil, up 20.3%; and gold, which increased by 37.7%. This export performance confirms Honduras’s productive diversification, consolidating coffee and bananas as fundamental pillars of its economy and reinforcing its position as a reliable trading partner in international markets.
Honduras Strengthens Its Water Security with Strategic Investment from CABEI
The Central American Bank for Economic Integration approved US$182 million in financing to implement the Quiebra Montes Multipurpose Dam Project, directly benefiting more than 190,000 people and expanding to 245,000 residents in the Municipality of the Central District. The project includes a dam with a storage capacity of 19.4 million cubic meters, a drinking water treatment plant, and a distribution line that will supply water from once every nine days to once every three days during the dry season. The project will also mitigate the flooding from the Guacerique River and help preserve the capacity of the Los Laureles reservoir by retaining sediment. Since it operates by gravity and does not require pumping, the project will generate estimated annual savings of 21 million lempiras for the government. This strategic investment by CABEI strengthens Honduras’ water infrastructure and climate resilience, serving as a model of regional cooperation for sustainable development.
Germany Consolidates Its Position as Honduras’s Leading Trading Partner in Europe
Germany has emerged as the leading buyer of Honduran products among European Union countries, driven largely by coffee exports, according to Rafael Delgado, executive director of the Honduran-German Chamber of Commerce and Industry, speaking at the Expo Alemania 2026 held in Tegucigalpa. Statistics show exports totaling US$300 million, including 1.2 million quintals of coffee, and growth in products such as African palm oil, cigars, tobacco, cocoa, and chocolate. According to data from the Central Bank of Honduras, exports to the European Union reached US$1,908.6 million in 2025, with US$500.2 million in sales to Germany, while in the first half of 2026, exports to that market have already totaled US$342 million. Delgado highlighted Honduras’ potential to expand its agricultural exports to the German market, which has high purchasing power and high-quality standards. Expo Alemania 2026, which brings together the business sector and organizations from both countries, fosters new opportunities for trade, innovation, and business development between Honduras and Germany.
Nicaragua Strengthens Its Public Finances with a Significant Fiscal Surplus
Nicaragua’s non-financial public sector posted a surplus after grants of C$36,592.0 million as of the end of June 2026, a 39.5% increase over the same period in 2025, according to the Ministry of Finance and Public Credit. This result was driven by growth in public sector revenues, which totaled C$150,940.1 million, a year-on-year increase of 17.3%, due to higher tax revenues and social contributions. Total public-sector expenditures amounted to C$114,383.8 million, mostly due to higher transfers and spending on goods and services, an increase of 11.5%. This fiscal performance reflects public finance management that combines revenue growth with responsible spending, thereby strengthening macroeconomic stability and the Nicaraguan government’s ability to sustain its public investment programs.
Central America Ranks Among the Most Economically Dynamic Regions in Latin America
ECLAC raised its growth forecast for Central America in 2026, estimating 4% growth when Cuba and Haiti are excluded from the subregion, with growth that could reach 4.2% in 2027. According to the “Economic Survey of Latin America and the Caribbean 2026,” Nicaragua (4.5%), Panama (4.4%), and Guatemala (4.0%) will lead regional economic growth, followed by El Salvador (3.9%), Costa Rica (3.7%), and Honduras (3.5%), all with solid projections within the Latin American landscape. ECLAC noted that regional inflation would remain contained, with price shocks concentrated mainly in energy and fertilizers, although with a more limited spillover effect on food prices than in previous episodes. In the labor market, employed personnel in the region increased by 1.6% in 2025, with the unemployment rate falling to 5.3%. The agency emphasized that sustaining these improvements will depend on increases in investment, productivity, and growth; key factors for consolidating Central America’s sustained economic development in the coming years.
BLP INSIGHT
Expert Committees in Public Procurement: Opportunities for Their Implementation in Costa Rica
Article 117 of the General Public Procurement Law (LGCP) established Expert Committees, known internationally as Dispute Boards, as a tool to prevent and promptly resolve technical or contractual disputes during the execution of public works contracts. Experience between 2022 and 2024 shows that this mechanism is still in a consolidation phase in Costa Rica. However, committees implemented under international models have proven useful when clear guidelines are in place. Key opportunities to strengthen their application include expanding training, establishing more precise guidelines on their composition and operation, clarifying the consequences of failing to activate the committees, and promoting greater transparency regarding existing cases and resolutions. Proper implementation of these opportunities could help reduce conflict escalation and support the continuity of public infrastructure projects.
Costa Rica Prepares Tender for the Expansion of the San José – Cartago Route
The Government of Costa Rica is preparing the bid process to expand and improve the San José–Cartago highway corridor, structured as a public works concession with private initiative approved by the MOPT. The project involves modernization of approximately 24.3 km of the Florencio del Castillo Highway, with an initial investment estimated by the MOPT at US$614 million and a 25-year concession term. The works planned include an overpass or viaduct between Hacienda Vieja and the Garantías Sociales roundabout, freeway widening, improvements to bridges and interchanges, and other complementary works. The call for bids, scheduled for the second half of 2026, must specify key details such as the concession’s final scope, the revenue model, tolls, bidder requirements, guarantees, and risk allocation. The call for tenders will present a significant opportunity for construction companies, operators, investors, and potential consortia interested in participating in the project.
BLP Podcast: What Infrastructure Can Be Financed in Costa Rica?
The viability of a long-term infrastructure project depends, to a large extent, on how risks are structured and responsibilities are allocated among the parties involved. In this episode, Luis Ortiz, partner at BLP Costa Rica, discusses the role of public-private partnerships (PPPs), bankability, financing and arbitration mechanisms, as well as the key factors that investors and lenders assess before committing capital.
Available on YouTube (🔤 Turn on CC and select “English” under auto-translate) and Spotify (Spanish).
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 | 452.88 | 3.63% | 3.00% | BB | Ba2 | BB | -0.27% |
| El Salvador | 8.75 | 4.63% | N/A | B- | B3 | B- | 2.49% |
| Guatemala | 7.62 | 4.65% | 3.50% | BB+ | Ba1 | BB+ | 2.70% |
| Honduras | 26.83 | 7.08% | 5.75% | BB- | B1 | N/A | 5.58% |
| Nicaragua | 36.62 | 1.31% | 5.75% | B+ | B2 | B | 4.00% |
26/08/2026 | Source: secmca.org
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