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 Strengthens Its Energy Security with a Historic Investment in Limón
The Costa Rican Electricity Institute (ICE) and the Central American Bank for Economic Integration (CABEI) signed a US$485 million financing agreement to develop the Energy Security and Sustainability Program in Costa Rica. With these funds, ICE will develop the Moín IV Project, with an installed capacity of 200 megawatts and an estimated investment of US$400 million. The project is scheduled to begin operations in 2030 and will provide the necessary backup to integrate the country’s wind and solar power plants. Marco Acuña, president of Grupo ICE, noted that the project will create 1,500 direct jobs for Limón residents over the next four years, boosting economic activity in the province. Álvaro Alfaro, CABEI’s country manager in Costa Rica, emphasized that this financing reflects the historic cooperation between the two institutions to strengthen the country’s renewable energy mix. With the addition of Moín IV, the Moín Complex will reach a total capacity of 370 megawatts, benefiting more than 2 million residential, commercial, and industrial customers connected to the National Electric System and consolidating Costa Rica’s energy security for decades to come.
Costa Rica Proposes a 2027 Budget Focused on Economic Growth and Fiscal Reforms
The Costa Rican government presented the 2027 budget proposal to Congress, totaling 12.4 trillion colones (about US$27 billion), based on projections of 3.4% economic growth for 2026 and 3.5% for 2027. The Ministry of Finance explained that 62.3% of the funding comes from the government’s own revenues. At the same time, the Ministry of Education remains the institution with the largest budget allocation, equivalent to 4.9% of GDP. Among the few institutions that will see their budgets increase in 2027 are the Ministry of Finance, the Ministry of Science, Technology, and Telecommunications, and the Ministry of Health. The Ministry of Finance urged Congress to approve reforms aimed at eliminating tax exemptions, strengthening tools to combat smuggling, reducing the size of public institutions, and improving the country’s financing conditions, including better interest rates and repayment terms. These reforms seek to strengthen Costa Rica’s fiscal sustainability and consolidate a more efficient macroeconomic environment to support projected growth.
CABEI Drives a Comprehensive Infrastructure Transformation in the Costa Rican Caribbean
More than 60 projects to strengthen infrastructure and improve access to essential services are underway in the province of Limón, supported by the Central American Bank for Economic Integration (CABEI), benefiting more than 500,000 residents and tourists visiting the region. A significant portion of these initiatives is being carried out through the Emergency Program for Comprehensive and Resilient Infrastructure Reconstruction, which includes seven bridges, six schools, six road projects, and a housing project, with investments totaling more than US$45 million. Among the projects currently underway is the Barras III housing development, which includes 92 homes for communities such as La Lucha de Siquirres, Parismina, and Tortuguero; 47 units have already been delivered. Construction is also progressing on the new Limoncito Neighborhood School, with a capacity for 900 students, and the rehabilitation of key bridges along National Route 32. These investments, complemented by improvements to the sanitary sewer system, reinforce CABEI’s commitment to the comprehensive development and resilience of the Costa Rican Caribbean region.
The Costa Rican Financial Market Is Moving Toward Greater Investment Diversification
Costa Rican investors are showing a growing interest in diversifying their portfolios through instruments that provide access to international markets and assets other than those traditionally available in the country, according to local investment fund managers. This trend has driven the development of new investment platforms and vehicles: BCR SAFI noted that broad-market index exchange-traded funds (ETFs) and international debt allow Costa Ricans to participate in global opportunities without leaving the country. BN Fondos plans to launch a product in late 2026 that will provide exposure to the price of gold, while Improsa SAFI developed ImproGO, a vehicle that combines ETFs, bonds, and mutual funds to simplify access to global markets, aimed specifically at an emerging profile of young investors. This evolution of the Costa Rican financial market—driven by the digitization of services and the pursuit of geographic and sectoral diversification—significantly expands the investment alternatives available to citizens, thereby strengthening the sophistication and competitiveness of the country’s financial system.
Costa Rica Moves Toward a New Mass Transit System with Support from CABEI
The Central American Bank for Economic Integration (CABEI) has opened a public bidding process to commission a Feasibility-Level Demand Study for the Urban Cable Car System between San José and Desamparados, a decisive step toward transforming mobility in the Greater Metropolitan Area of Costa Rica. The project proposes a reference route from the Estación del Pacífico to San Miguel de Desamparados, designed as a mass transit system integrated with the existing road network. CABEI’s preliminary study identified an indicative potential of 32,599 daily passengers and more than 24 million annual riders on the southern corridor routes—figures that will now be validated through a specialized consulting study with 20-year projections. The consulting study will be funded with a budget of US$150,000 over 18 weeks, with a deadline for submitting proposals of September 9, 2026. This project represents a strategic opportunity to modernize urban mobility in Costa Rica and strengthen mass transit options in the capital.
El Salvador Raises Its Growth Forecasts and Exceeds International Expectations
The Central Reserve Bank of El Salvador significantly raised its economic growth outlook for 2026, now estimating GDP growth between 4.5% and 5%, above the initial April projection of 3% to 3.5%. This adjustment reflects the strong performance observed during the first half of the year, supported by the Economic Activity Volume Index, which recorded a year-over-year increase of 5.2% in June and a cumulative average of 4.6% in the first six months of the year. Construction led this growth with a 10.7% expansion, driven by residential, commercial, and public infrastructure projects, while real estate activities rose 7.1% and government services grew 8%. The information and communications sector also stood out with 7.8% growth, driven by the sale of internet services. With this revision, El Salvador exceeds the international forecasts of the World Bank and ECLAC, which projected growth of 3% and 3.4%, respectively, consolidating a favorable economic outlook driven by increased investment, security, and infrastructure projects.
S&P Affirms El Salvador’s Rating and Highlights Its Economic Strength
S&P Global Ratings affirmed El Salvador’s sovereign ratings at ‘B-’ for the long term and ‘B’ for the short term, with a stable outlook, according to its assessment published on August 27. The rating agency noted that improved security conditions are driving investment and economic growth, projecting a 4.4% expansion by 2026, supported primarily by investment, which reached about 27% of GDP in 2025. S&P also highlighted the strengthening of public finances: government revenues increased from 22.8% of GDP in 2019 to 26.7% in 2025, while the primary balance shifted from a balanced position in 2024 to a surplus of 1.9% of GDP in 2025, with a projected increase to 2.6% by 2026. The agency noted that El Salvador has multiple sources of financing, including the US$1.4 billion agreement with the IMF and an additional package of approximately US$3.5 billion from other multilateral organizations through 2027. This stable rating confirms El Salvador’s trajectory of fiscal and economic strengthening, bolstering international markets’ confidence in the country.
El Salvador Continues to Expand Its Export Growth with a Diversified Presence in the Region
Salvadoran exports totaled US$4,036.7 million between January and July 2026, a 4.4% increase compared to the same period in 2025, according to the Central Reserve Bank. The United States remained the top destination, with US$1,322.8 million, followed by Guatemala and Honduras, while Nicaragua, Costa Rica, and Mexico also established themselves as significant markets for Salvadoran products. Trade with Central America showed positive performance, with exports to the region growing 1.7% to reach US$1,941.1 million. By product, foreign sales remained concentrated in manufactured goods, notably apparel, sugar, coffee, and electrical products, with non-maquiladora exports growing 4.6% to US$3,490.1 million. This performance confirms the ability of Salvadoran companies to maintain sustained growth in their foreign sales, consolidating their presence in multiple markets across the region and strengthening the country’s international trade opportunities.
El Salvador Reports a Significant Increase in Consumption and Investment Capacity
El Salvador’s imports of goods totaled US$11,145.5 million between January and July 2026, an 8.5% increase compared to the same period in 2025, according to the Central Reserve Bank. This figure represents the highest recorded for this period since 2017, reflecting greater consumption and investment capacity among Salvadoran households and businesses. Among the main imported products were oils, at US$1,372.1 million; medicines, at US$414.3 million; and petroleum gas, at US$353.7 million. Vehicles, automotive parts, and telephones were also among the top purchases, reflecting increased demand for durable goods and technology. The United States remained the leading supplier, followed by China, Guatemala, and Mexico, highlighting the diversity of El Salvador’s trading partners. This import growth confirms the strengthening of Salvadoran purchasing power and the growing demand for products that accompany the country’s economic growth.
San Salvador Opens the Door to Investment in Its Historic Center with New, Clear Rules
In San Salvador’s historic center, the area designated for urban development or modernization projects is 69.63% buildable, according to the Special Plan for Land Use and Territorial Development, prepared with assistance from the Inter-American Development Bank. The director of the Historic Center Authority, Adriana Larín, noted that 30.37% of the buildable area has heritage value, while the remaining area is designated for complementary developments that contribute to the repopulation of the zone. The plan establishes clear rules for the restoration and adaptation of properties for cultural, tourist, commercial, and residential purposes, eliminating the uncertainty investors previously faced regarding expansion conditions for heritage properties. All this information will be organized and digitized on a platform where interested parties can review the zoning code, the permitted uses, and allowed expansions for each property. The historic center, which welcomed more than four million tourists in 2025, has established itself as a magnet for investment, and this new regulatory framework strengthens the conditions for urban development and private investment in the area.
Mundo Maya Airport Is Establishing Itself as a Key Player in Guatemala’s Tourism Connectivity
Mundo Maya International Airport, in Petén, recorded a 37% increase in passengers served over the past two years, rising from 284,365 in 2023 to 390,584 in the most recent period, according to the Deputy Minister of Transportation at the Ministry of Communications, Infrastructure, and Housing. This growth has occurred alongside a much more moderate increase in the number of flights, indicating greater capacity among the aircraft using the terminal. In light of this, authorities are moving forward with a modernization program that includes 40 initiatives across five strategic areas, including security, passenger experience, and runway expansion to facilitate larger aircraft. One priority project is to complete the airport’s certification process, which could make it an alternate terminal to La Aurora Airport. This strategy aims to decentralize the country’s air connectivity and strengthen tourism in Petén, thereby consolidating new investment opportunities in airport infrastructure and regional economic development.
Guatemala Signs Its New General Ports Law, Marking a Historic Milestone for Foreign Trade
President Bernardo Arévalo has signed Decree 20-2026, the General Ports System Law, which will take effect 30 days after publication and aims to transform the way Guatemala handles 90% of its foreign trade. At the heart of the law is the creation of the National Port Authority, an autonomous and decentralized entity with the power to regulate, plan, oversee, and inspect the country’s entire port system. Puerto Quetzal and Puerto Santo Tomás de Castilla, which handle more than 85% of the cargo entering and leaving Guatemala, will receive Q4.8 billion in the 2027 budget earmarked exclusively for port modernization, along with an additional Q600 million for ports, airports, and railways. FUNDESA’s executive director, Juan Carlos Zapata, described the law’s passage as excellent news for attracting investment, trade, and tourism. This law opens up three key opportunities: attracting private investment to modernize port infrastructure, reducing logistics costs for consumers, and establishing Guatemala as a reliable regional logistics hub within global trade chains.
Guatemala Reports Solid Progress on Inflation, Growth, and Formal Job Creation
Guatemala’s Special Cabinet for Economic Development presented its mid-year report, highlighting that inflation reached 2.70% in July, within the established target range, while the economic growth projection for 2026 remains at 4.1%, above the regional average. Vice President Karin Herrera noted that adding ethanol into regular gasoline has benefited consumers, leading to a slight decrease in fuel prices. The Cabinet reported 56.5% progress toward achieving its 2026 goals through four Intersectoral Working Groups: in the labor market, 54,687 people joined formal jobs with IGSS (Guatemalan Social Security Institute) coverage; in market development, 2,699 small and medium-sized producers were connected with new buyers; in the environment, 110 municipalities were strengthened in the circular economy; and in the productive sector, 513 procedures were simplified and nearly 50,000 people received training. These results confirm a solid economic trajectory for Guatemala, with controlled inflation, sustained growth, and significant formal job creation during the first half of 2026.
Honduras and the United States Advance Strategic Cooperation Agenda in Infrastructure and Energy
Honduran President Nasry Asfura met with the Deputy Director of the U.S. Trade and Development Agency, Thomas Hardy, to discuss a cooperation agenda focused on infrastructure, logistics, energy, and investment. During the meeting, the two officials explored initiatives to improve connectivity between ports, airports, and highways, as well as the possibilities of leveraging Honduras’s strategic location to strengthen trade and advance the connection between the Pacific and Atlantic Oceans. Asfura emphasized the importance of continuing to invest in infrastructure to strengthen trade with the United States, Honduras’s closest trading partner, and highlighted the need to establish clear rules to promote the modernization of the country’s electricity sector. The president stated that the United States has shown a willingness to support Honduras’s logistics and energy modernization process, key elements for boosting the economy and generating employment. This bilateral cooperation consolidates new opportunities for U.S. investment in strategic infrastructure for Honduras’s economic development.
Honduras’s Sovereign Bond Market Records Notable Growth in Activity
Honduras’s secondary market for Sovereign Bonds recorded 202.37% growth in traded volumes between July and August 2026 compared with the May–June period, according to the Central American Securities Exchange. As part of this momentum, a US$10.3 million Sovereign Bond transaction was completed on August 28, reflecting greater investor participation and a strengthening of the market’s liquidity and depth. This performance consolidates the secondary market as a relevant component of the Honduran securities market, broadening trading opportunities for participants. To further analyze these instruments, the Central American Securities Exchange will host the webinar “Honduras 2036: What Is the Market Seeing?”, featuring finance and investment specialists. This growth in Sovereign Bond trading reinforces the development of a more transparent, competitive, and dynamic capital market in Honduras, strengthening participation opportunities for local and international investors.
Honduras Registers a Notable Increase in Family Remittances
Family remittances received by Honduras totaled US$7,692.2 million between January and July 2026, an 11.2% increase compared to the same period in 2025, according to the Central Bank of Honduras. This flow of foreign currency exceeded the amount recorded a year earlier by US$777.5 million, solidifying its position as one of the main pillars of the Honduran economy. Remittances from the United States, where a large Honduran community resides, represent more than 25% of the country’s Gross Domestic Product and constitute its main source of foreign exchange, surpassing income generated by traditional exports such as coffee, maquila (assembly plants), and shrimp. The Central Bank highlighted that 86% of these funds are used for consumption and basic family needs, including food, health, and education. Honduras closed 2025 with US$12,212 million in remittances, and monetary authorities project reaching around US$10,670 million during 2026, consolidating this constant flow as a fundamental support for the economic stability and well-being of thousands of Honduran families.
Nicaragua Shows Signs of Economic Recovery Driven by Services and Construction
Nicaragua’s economic activity showed improvement in June 2026, with the Monthly Index of Economic Activity registering year-on-year growth of 1.8%, higher than the 0.9% observed in May, according to the Central Bank of Nicaragua. Between January and June, the Nicaraguan economy expanded by 3.6%, while the average variation over the last 12 months stood at 4.9%. June’s performance was mainly driven by the energy and water sector, which grew 17.9%, followed by construction, with an advance of 11.3%, and hotels and restaurants, with growth of 8.6%. Significant progress was also registered in the livestock, transportation and communications, and commerce sectors. Agriculture also performed well, with increased activity in basic grain crops. This performance reflects the capacity of Nicaragua’s productive sectors to sustain economic growth, consolidating opportunities in areas such as energy, construction, and tourism.
United States Promotes Modernization of Aviation Cybersecurity in Central America
The United States Trade and Development Agency (USTDA) will strengthen the Central American aviation cybersecurity infrastructure by providing technical assistance to the Central American Corporation for Air Navigation Services (COCESNA), benefiting Belize, Costa Rica, El Salvador, Guatemala, and Honduras. The initiative includes a comprehensive roadmap to strengthen the protection of air navigation systems against growing cyber threats, including improvements to encryption and authentication protocols and staff training. COCESNA chose the U.S. company CRCibernetika, LLC, to develop this technical assistance, which covers cybersecurity, information technology, and operational technology. USTDA Deputy Director Thomas Hardy noted that this cooperation will also create opportunities for U.S. companies to export reliable technology solutions to the region. The CEO of COCESNA emphasized that this initiative will provide safer and more resilient air navigation services, strengthening confidence in air connectivity between Central America and the United States.
BLPodcast.
Energy for Growth: Investment and Electricity Regulation in Costa Rica [Spanish audio · English subtitles]
The energy transition is transforming Costa Rica’s electricity sector. In this episode, we analyze how regulation, contracts, and new technologies influence private investment, service reliability, and the viability of energy projects.
We discuss distributed generation, self-consumption, storage, hydrogen, permits, grid access, and the main regulatory risks that companies must consider before investing.
📩 If you’d like to discuss this topic, please email us at [email protected].
BLP INSIGHT
Mandatory Registration for Data Protection Officers in El Salvador
The new Guidelines for the Data Protection Officer, issued by the State Cybersecurity Agency (ACE) and published on August 11, 2026, establish for the first time the obligation to notify and register the appointment of a Data Protection Officer (DPO) with the ACE. The Guidelines also introduce specific requirements for the DPO’s appointment and role, including experience, certification, conflict-of-interest declarations, functional independence and periodic training. Appointments must be notified within 15 business days following the appointment, while any changes to the registered information must be updated within 10 business days. Organizations that already have a DPO should review their existing appointments against the new requirements and comply with the applicable notification obligations while the ACE enables the DPO Registry. Overall, the Guidelines transform an existing appointment requirement into a formal process involving registration, oversight and ongoing compliance.
Expert Committees in Public Procurement: Opportunities for Their Implementation in Costa Rica
Article 117 of the General Law on Public Procurement incorporated Expert Committees, known internationally as Dispute Boards, as mechanisms to prevent and resolve technical or contractual disputes during the execution of public works projects. Experience accumulated between 2022 and 2024 shows that this mechanism is still in a consolidation phase in Costa Rica, although committees implemented under international models have proven their usefulness when clear guidelines exist. Among the main opportunities to strengthen their application are improving training, clarifying the rules on their formation and activation, and promoting greater transparency regarding cases and resolutions. More consistent implementation would allow these mechanisms to be used as preventative tools, reducing the escalation of conflicts and promoting the continuity of infrastructure projects.
Costa Rica Prepares Tender for the Expansion of the San José – Cartago Route
The Costa Rican government is preparing a tender to expand and improve the Florencio del Castillo Highway, structured as a public-private partnership concession approved by the Ministry of Public Works and Transportation (MOPT). The project involves work on approximately 24.3 kilometers of the San José-Cartago corridor, with an initial investment estimated by the MOPT at US$614 million and a 25-year concession period. The planned works include an overpass or viaduct between Hacienda Vieja and Garantías Sociales, bridge widening, improvements to bridges and interchanges, and other complementary works. The tender documents, expected in the second half of 2026, will define key aspects such as the scope of the concession, the revenue and toll model, bidding requirements, guarantees, and risk allocation, presenting a significant opportunity for construction companies, operators, investors, and potential consortia.
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 | 451.72 | 3.63% | 3.00% | BB | Ba2 | BB | -0.27% |
| El Salvador | 8.75 | 4.77% | N/A | B- | B3 | B- | 2.49% |
| Guatemala | 7.62 | 4.65% | 3.50% | BB+ | Ba1 | BB+ | 2.70% |
| Honduras | 26.86 | 6.76% | 5.75% | BB- | B1 | N/A | 5.58% |
| Nicaragua | 36.62 | 1.31% | 5.75% | B+ | B2 | B | 4.00% |
02/09/2026 | Source: secmca.org
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