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 Forges an Alliance That Redefines Its Role in Regional Cooperation
Costa Rica and Luxembourg officially launched the COOPERA program, a platform for South-South and Triangular Cooperation backed by a fund of more than US$6.5 million to promote sustainable development and social equity in Latin America and the Caribbean. The initiative marks a strategic shift for the country, which is moving beyond its role as a mere recipient of aid to establish itself as a partner that shares solutions and best practices with the region. The program is structured around three pillars: a competitive grant fund for innovative projects, South-South knowledge exchange, and a technical partnership with Caribbean nations. Implementation is coordinated by the Ministry of Foreign Affairs and the Ministry of National Planning, with support from LuxDev, Luxembourg’s cooperation agency. Such partnerships strengthen Costa Rica’s position as a reliable platform for international cooperation and open new doors to investment and strategic financing for sustainable development projects.
Costa Rica Gains a New Direct Gateway from the U.S. Capital
United Airlines will launch a direct route between Washington-Dulles International Airport and Guanacaste Airport in Liberia starting December 17, operating daily during the year-end peak season. The Boeing 737 Max 9 aircraft, with a capacity of 179 passengers, will connect travelers from Washington, Virginia, and Maryland to the beaches of Guanacaste, leveraging United’s extensive network in the northeastern United States. With this route, the airline expands its presence at the Costa Rican airport, which will now offer connections from seven of its major hubs in the United States. The Costa Rican Tourism Institute highlighted that this connectivity will boost visitor arrivals during the peak season, cementing Guanacaste’s status as an increasingly accessible destination for the U.S. market. This new route will drive tourism, hotel investment, and economic development in the country’s northwestern region.
Costa Rica Moves Forward with the Modernization of Its Main Air Gateway Through a New Strategic Project
Juan Santamaría International Airport, managed by AERIS, has completed its second project under the 2023–2042 Master Plan: the realignment of the service road and the creation of a second access point to the Rescue and Firefighting Service. The project enhances the airport’s operational safety, improves emergency response capabilities, and complies with ICAO international standards. The work included the construction of more than 4,500 m² of flexible pavement, ensuring operational redundancy and greater efficiency in emergency response. The Master Plan calls for an investment of approximately US$390 million to progressively modernize the airport’s infrastructure and support the sustained growth of air traffic. These types of investments strengthen connectivity, attract new air routes, and consolidate Costa Rica’s position as an increasingly competitive destination for tourism and business.
Costa Rica: Jacó Establishes Itself as the Epicenter of a Real Estate Boom in the Central Pacific
Jacó’s real estate market continues to strengthen its position as a leading destination for residential investment in Costa Rica, driven by projects that prioritize sustainability and high-quality construction. The Selva Coral project, with 118 units including towers and single-family homes, has already sold more than half of its apartments and is entering its final sales phase with immediate delivery. The development has earned Blue Flag Ecological certification for its sustainable practices and amenities such as coworking spaces, swimming pools, and electric vehicle charging stations, attracting both second-home buyers and investors. The option for short-term rentals and preferential financing agreements—including financing for up to 100% of the property’s value—facilitates access to this market. This momentum confirms Jacó as an increasingly attractive area for real estate investment and residential tourism in Costa Rica.
Costa Rica Opens the Door to New Funding to Boost Science and Innovation
The Costa Rican Agency for Innovation and Research has launched the CR INNvestiga 2026 call for proposals, an initiative that will fund at least six research and development projects with up to ₡20 million each, for a potential investment of ₡120 million. The call for proposals is open to universities, research centers, institutions, and companies legally incorporated in Costa Rica, with projects that must be completed within a maximum of 24 months. The funding will focus on three strategic areas: the circular bioeconomy, digital health and longevity, and public safety and educational equity. Proposals will be evaluated based on scientific merit, impact, and feasibility, requiring a minimum score of 70 points to advance. The call for proposals will remain open until August 28, 2026, solidifying a concrete commitment to transforming scientific knowledge into practical solutions for the country’s development.
The United States Places El Salvador on the Radar of Its New Regional Cooperation Strategy
The United States seeks to expand its support for economic development projects in Latin America, and El Salvador is among the countries mentioned by the U.S. Trade and Development Agency (USTDA) as part of this new regional initiative. According to the agency’s deputy director, Thomas Hardy, the USTDA program will expand significantly in the region, with El Salvador, Colombia, and Ecuador identified as countries where more projects could materialize in the coming years. This type of cooperation typically involves technical assistance, feasibility studies, and planning for infrastructure, transportation, energy, or digital connectivity projects. As a regional example, Hardy cited an agreement signed with Honduras to develop a transportation corridor between the Caribbean and the Pacific, illustrating the type of initiatives Washington seeks to promote. Although there are no specific amounts or projects for El Salvador yet, this closer relationship with the United States opens the door to future opportunities for investment and technical cooperation in the country.
El Salvador Opens a Window to New Markets in Asia and Europe
The Embassy of El Salvador in Singapore held a strategic meeting with Food Empire Holdings, a multinational food and beverage company present in 60 countries, to boost Salvadoran exports to markets in Asia and Europe. During the meeting, the country’s export offerings were presented, highlighting products such as specialty coffee—particularly the Pacamara and Bourbon varieties—cocoa, honey, confectionery, and processed foods. The conglomerate’s management team expressed strong interest in learning more about these products, opening the door to their potential inclusion in its international distribution chain. The Salvadoran ambassador emphasized that this partnership represents an exceptional platform for positioning domestic products in new markets. This initiative builds on already evident growth in bilateral trade: exports to Singapore grew by 49% in 2025, reinforcing El Salvador’s potential to diversify its export markets.
El Salvador Stands Out Among Countries Where Free Trade Zones Most Drive the Economy
An EY study reveals that free trade zones account for 10.6% of El Salvador’s GDP, the second-highest rate in Latin America, trailing only Costa Rica at 15.1%. Some 18 free trade zones are operating in the country, home to 170 companies that generate approximately 81,405 jobs—54,270 direct and 27,135 indirect—and where women have accounted for 53% of the workforce over the past 18 years. These companies generate more than US$5.6 billion in exports, equivalent to 80% of the national total, with a significant recovery following the pandemic. The study highlights that for every dollar of tax expenditure associated with this regime, US$6 in added value is generated—one of the highest returns in the region. This performance solidifies El Salvador’s position as an attractive destination for industrial and manufacturing investment, with a regime that continues to demonstrate strength and the ability to generate jobs.
El Salvador Is Experiencing a Construction Boom That Sets a Historic Record
Apparent cement consumption in El Salvador reached its highest level for a first four-month period since records began in 2005, with a 10.35% increase and more than 18.4 million bags consumed between January and April 2026, according to the Central Reserve Bank. This momentum reflects the boom in the construction industry, which grew 13.5% in the first quarter of the year, driven by increased private investment in residential, commercial, and logistics projects, as well as public infrastructure projects in education, roads, and airports. According to the Central American Monetary Council, El Salvador’s construction sector recorded the highest growth in the region as of April. This upturn follows a historic 2025, when the sector grew by 24.41%—its strongest expansion in at least two decades. For 2026, the Salvadoran Chamber of Construction projects investment of between US$3.5 billion and US$4.0 billion, confirming the sector as one of the country’s main drivers of growth and investment.
The Salvadoran Stock Market Is Experiencing a Boom That Reflects Increased Investor Confidence
Trading volume on the El Salvador Stock Exchange grew by 57.1% during the first five months of 2026, reaching US$2,810.5 million across 3,072 transactions, according to the Superintendency of the Financial System. The repo market saw the most activity, with a trading volume of US$1,492.3 million and year-over-year growth of 125.5%, driven primarily by open-end investment funds that allow participation starting at US$200. International trading of sovereign debt instruments also showed strong growth, reaching US$657.4 million. There are currently four fund management companies operating, managing 19 funds with combined assets of US$2,809.3 million and offering annualized returns ranging from 3.56% to 6.39%. This sustained growth in the stock market confirms El Salvador’s status as an increasingly attractive environment for investment and portfolio diversification.
Guatemala Ushers in a New Era in Energy with the Arrival of Its First Large Shipment of Ethanol
Guatemala received its first ship loaded with ethanol from the United States at the port of Santo Tomás de Castilla, marking the official start of the rollout of E10 gasoline in the country. The operation is part of the Reciprocal Trade Agreement signed with the United States, which exempts Guatemala from a 10% tariff in exchange for promoting biofuels and purchasing up to 50 million gallons of ethanol annually. The Ministry of Energy and Mines anticipates a steady flow of two ships per month to meet the projected demand of 100 million gallons per year. The blended fuel will be available at all gas stations starting August 21. The new scheme is also expected to lower the price per gallon and stabilize local costs in the face of international crude oil price volatility. This energy transition opens the door to new investments in logistics, distribution, and biofuels, consolidating Guatemala’s position as an attractive market for regional energy trade.
Guatemala Strengthens Its Export Engine with Results That Exceed Expectations
Guatemala’s exports reached US$7,199 million between January and May, a 5.5% increase compared to the same period in 2025, driven mainly by coffee and apparel, according to the Bank of Guatemala. Other sectors such as sugar, bananas, edible oils, and plastics also contributed significantly to this result, reflecting the diversification of the country’s export portfolio. Central America and the United States remain the main export destinations, accounting for nearly 65% of total exports, followed by the Eurozone, Mexico, and Canada. The country closed out 2025 with US$15,595.3 million in export revenue, surpassing the previous year’s results and confirming a trend of sustained growth. This performance reinforces Guatemala’s position as a reliable trading partner and opens up opportunities for investors interested in its agro-export and industrial sectors.
Guatemala and the United Kingdom Join Forces to Revolutionize Mobility in the Capital
Guatemala and the United Kingdom signed a memorandum of understanding to launch technical cooperation to develop MetroRiel, a mass transit system designed to alleviate traffic congestion in Guatemala’s capital. The agreement establishes a framework for collaboration to design the project’s roadmap, with British technical support in structuring complex, large-scale construction projects. MetroRiel is one of 13 infrastructure projects prioritized by the Arévalo de León administration, and it aims to connect a metropolitan region home to more than five million people, where no rail projects of this magnitude have been undertaken for over half a century. The initiative aims to reduce travel times, mitigate carbon emissions, and strengthen governance and transparency in the project’s implementation. This type of international cooperation reinforces foreign partners’ confidence in Guatemala’s institutional capacity and opens new investment opportunities in infrastructure and urban mobility.
Honduras Sees a Historic Surge in Remittance Flows, Boosting Its Economy
Honduras received US$6,515.4 million in family remittances during the first half of 2026, a year-to-year increase of 12.3% compared to the US$5,799.6 million received during the same period in 2025, according to data from the Central Bank. More than 85% of these funds come from the United States, home to a large Honduran community that sustains this steady flow of foreign currency. Remittances account for more than 25% of the country’s GDP, cementing their position as the primary source of foreign income, ahead of traditional exports and foreign direct investment. The Central Bank projects that the year will close with approximately US$10,670 million, continuing the trend of sustained growth recorded in 2025. This momentum strengthens exchange rate stability and domestic consumption, factors that bolster investor confidence in the country’s economic potential.
Honduras Is Moving Forward with a Project That Will Transform Healthcare in the Northern Part of the Country
Honduran President Nasry Asfura signed an agreement with the Spanish company Dominion to develop the new Puerto Cortés Hospital, a healthcare facility with 140 inpatient beds and 60 additional beds for emergency care, recovery, and specialty services. The project includes the design, construction, equipping, and maintenance of a 15,000-square-meter facility, equipped with state-of-the-art medical technology and a parking lot for 150 vehicles. The project will significantly expand healthcare capacity in Puerto Cortés and the surrounding area, benefiting thousands of residents in the northern part of the country. The project will be financed through a program supported by the Government of Denmark, with operations scheduled to begin in 2028. This type of public-private partnership strengthens Honduras’ social infrastructure and confirms foreign capital’s interest in long-term development projects.
Honduras Shows Signs of Stability as Inflation Slows
Honduras’ year-over-year inflation slowed to 5.83% at the end of the first half of 2026, down from the 6.09% recorded in May, according to the Honduran Central Bank. The bank attributed this slowdown to temporary supply shocks, amid global geopolitical tensions that impacted prices during the first quarter of the year. The Consumer Price Index reached its lowest level for June since 2020, marking a slowdown for the second consecutive month. Cumulative inflation for the first six months of 2026 stood at 3.80%, reflecting a moderating trend compared to the end of 2025. This price stabilization strengthens confidence in the country’s macroeconomic management and contributes to a more predictable environment for investment and consumption.
Nicaragua Strengthens Its Financial Backing with a Historic Surge in International Reserves
Nicaragua’s gross international reserves reached US$9,808.6 million as of June 2026, a 36.1% year-over-year increase, according to the country’s Central Bank. This sustained growth has allowed these reserves to double over the past four years, driven by net foreign exchange purchases, an increase in foreign currency reserves, and interest earned on the central bank’s own investments. In June alone, reserves rose by US$36.3 million compared to the previous month. For 2026, the Central Bank projects economic growth of between 3.5% and 4.5%, with inflation kept under control at between 2.5% and 3.5%, following GDP growth of 4.9% in 2025. This strengthening of international reserves reflects greater macroeconomic stability and confidence among those evaluating investment opportunities in the country.
Central America Is Positioning Itself as the New Heart of Nearshoring in Latin America
Free trade zones have become a strategic ecosystem that is redefining investment in Central America, generating exports exceeding US$60 billion and creating more than 3.2 million jobs in the region, according to an analysis by EY. Costa Rica leads in sophistication and value-added, with up to 60% of its exports coming from free trade zones in sectors such as medical devices, advanced manufacturing, and global services. El Salvador demonstrates an efficient model focused on textiles and apparel, which accounts for nearly 11% of its GDP and generates significant formal employment. Guatemala, although it has had a relatively minor share so far, is emerging as a market with high growth potential in the context of nearshoring, supported by its textile manufacturing base and new opportunities to integrate into regional value chains. This dynamism confirms the three countries as increasingly attractive destinations for foreign investment and the relocation of production.
Guatemala and El Salvador Launch a New Air Connection That Brings Borders and Business Closer Together
The Guatemalan Tourism Institute and TAG Airlines inaugurated a new direct flight route between Guatemala City and San Salvador to boost visitors and business between the two countries. The route will operate four times a week using ATR 72-500 aircraft, with projections to carry approximately 8,000 passengers per month and create 65 new direct jobs. El Salvador is Guatemala’s primary source market for tourists, with more than 1.5 million Salvadoran visitors expected in 2025. Authorities from both countries emphasized that the route offers a faster alternative to ground transportation and will strengthen the economic integration of small and medium-sized hotel and restaurant businesses in the region. This new connectivity opens up investment opportunities in tourism, cross-border trade, and services between Guatemala and El Salvador.
BLP INSIGHT
Honduras Approves New Transparency and Centralized Beneficial Ownership Registry Law
Honduras has enacted a new Transparency and Centralized Beneficial Ownership Registry Law, administered by the National Banking and Insurance Commission (CNBS), to strengthen corporate transparency. The law requires entities to identify and report their beneficial owners, maintain accurate and up-to-date information and comply with new registration requirements. It also establishes the criteria for determining beneficial ownership and effective control, as well as deadlines for reporting changes. In addition, it requires bearer shares to be converted into registered shares within six months. Failure to comply may result in significant fines and the suspension of rights associated with non-regularized bearer shares.
Costa Rica Clears the Way for the Limón Marina: What Investors Need to Know
Costa Rica has taken a significant step toward advancing the redevelopment of Limón’s port waterfront by approving a reform that authorizes JAPDEVA to enter into strategic partnerships with the private sector and grant marina concessions. The initiative creates new investment opportunities in tourism and port infrastructure under a defined regulatory and oversight framework. While the law is only pending presidential signature and official publication, implementing regulations must still be issued to establish the procedures for its application. Below, we outline the key changes, their implications and the main considerations for potential investors.
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 | 452.18 | 3.65% | 3.25% | BB | Ba2 | BB | -0.31% |
| El Salvador | 8.75 | 4.67% | N/A | B- | B3 | B- | 2.76% |
| Guatemala | 7.62 | 4.70% | 3.50% | BB+ | Ba1 | BB+ | 2.27% |
| Honduras | 26.75 | 6.59% | 5.75% | BB- | B1 | N/A | 5.83% |
| Nicaragua | 36.62 | 1.44% | 5.75% | B+ | B2 | B | 3.98% |
17/07/2026 | Source: secmca.org
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