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 presents its model of productive transformation to the OECD as a regional success story
The Costa Rican Minister of Foreign Trade presented Costa Rica’s development model at the 18th International Economic Forum on Latin America and the Caribbean, organized by the OECD Development Centre in Paris, highlighting the country’s productive transformation over the past decades. Costa Rica has evolved from an export structure centered on agricultural products to a sophisticated and diversified economy, thanks to trade liberalization, market diversification, and the attraction of foreign direct investment. The minister underscored the importance of technical education and business formalization as tools for expanding job opportunities and improving competitiveness. The country, an OECD member for the past five years, leverages its membership to incorporate best practices into evidence-based public policies. Costa Rica is thus establishing itself as a Latin American benchmark for successful economic transformation and an attractive destination for high-value investment.
The IMF endorses Costa Rica’s monetary strength and recommends flexibility to cut rates if low inflation persists
The International Monetary Fund (IMF) recognized Costa Rica’s macroeconomic strength, noting that the Central Bank (BCCR) should be prepared to lower the monetary policy rate if inflation remains below its 3% target and inflation expectations continue to decline, according to the Executive Board’s assessment following the 2026 Article IV Consultation. The IMF highlighted that Costa Rica has experienced eleven consecutive months of deflation and three years of inflation below target, reflecting the country’s price stability and the effectiveness of its monetary policy. The agency’s projections indicate that inflation will return to the 2% to 4% tolerance band over the next eight quarters, supported by solid macroeconomic fundamentals. The Executive Board also encouraged efforts to strengthen the transmission of monetary policy and highlighted the importance of reinforcing the Central Bank’s autonomy and governance. This IMF endorsement reinforces Costa Rica’s image as a well-managed economy with credible financial institutions and stable conditions for investment
Canadian tourism in Costa Rica grew by 26.6%, cementing Canada’s position as the country’s second-largest source market
Between January and April 2026, 173,349 Canadian tourists arrived in Costa Rica by air, a 26.6% increase compared to the same period in 2025—more than double the country’s overall growth in air tourism, which stood at 10.5%, according to data from the Costa Rican Tourism Institute (ICT). Canada remains the second most important source market for Costa Rica, with visitors staying an average of 14.9 nights and spending an average of US$202.87 per person per day, showing a strong affinity for nature, adventure, and wellness. The ICT and the Proimagen association promoted the market through advertising campaigns on trams in Calgary, Vancouver, and Toronto, as well as trade tours with travel agents in Toronto and Montreal. The activities of greatest interest to Canadian visitors include national parks, volcanoes, canopy tours, rafting, and wellness experiences. This outstanding performance reflects the strength of Costa Rica’s tourism promotion strategy and consolidates the country as a premium, high-value destination for one of its most profitable markets.
Costa Rica eliminates 187 bureaucratic barriers and strengthens its commitment to business competitiveness
The Ministry of Economy, Industry, and Commerce (MEIC) reported the elimination of 10 new bottlenecks in business procedures under the “Le Dejamos Trabajar” initiative, bringing the cumulative total to 187 obstacles eliminated since the program began in 2022. Notable among the implemented solutions are the launch of a virtual AyA agency, regulatory reforms to enable digital procedures, the hiring of 40 analysts to reduce backlogs in health registrations, and the publication of regulations that streamline permits and certifications for businesses. The minister reaffirmed the MEIC’s commitment to promoting concrete actions to reduce paperwork, optimize processes, and strengthen the country’s competitiveness for the benefit of those who start businesses, produce goods, and create jobs. This initiative meets the private sector’s demand for more agile, efficient public institutions. The systematic elimination of bureaucratic barriers reinforces Costa Rica’s appeal as an investment destination and improves the business climate for domestic and international companies.
Costa Rica launches LEAPCR to accelerate startups, attract investment, and turn innovation into jobs.
Costa Rica has launched LEAPCR, a program led by IDB Lab, the Costa Rican Agency for Innovation and Research (PCII), the CRUSA Foundation, and the Development Banking System (SBD), with the aim of accelerating the country’s startup ecosystem and strengthening high-potential entrepreneurship. The initiative will focus on capacity building, early-stage financing, open innovation, and policies that support the entrepreneurial ecosystem and help startups enter international markets. LEAPCR seeks to better coordinate stakeholders within the national ecosystem, send clear signals to the market, and build a pathway that enables more startups to scale up, access investment, and compete globally. The general manager of the PCII emphasized that Costa Rica possesses valuable talent and capabilities that must be harnessed to generate quality formal employment. This program positions Costa Rica as a competitive innovation ecosystem that is attractive to international investors interested in high-impact ventures.
El Salvador is removed from the ILO’s watch list, giving the green light to foreign investment.
El Salvador’s Minister of Labor confirmed that the country has been removed from the International Labor Organization’s (ILO) watch list, on which it had remained for 20 years due to allegations related to labor rights, marking a significant improvement in its international image. The minister described the removal as a green light for investors, indicating that the path is clear and that the country no longer has a negative image in this area. The American Chamber of Commerce (AmCham), the Salvadoran Association of Industrialists (ASI), and the Sugar Association agreed that this development strengthens legal certainty and opens new opportunities for investment and exports. The Minister of Economy also highlighted that the decision will attract more investment into the Salvadoran economy. This achievement, the result of months of meetings and the submission of information to the ILO, strengthens El Salvador’s position as a destination with better labor conditions and greater legal certainty for transnational companies.
El Salvador leads the way in real estate asset tokenization with 54 approved digital issuances and more than 125 authorized companies
El Salvador’s National Commission on Digital Assets (CNAD) has approved 54 issuances to finance real estate projects such as high-end residential developments, apartment towers, industrial warehouses, and land subdivisions, cementing the country’s position as a regional pioneer in real asset tokenization. Since its creation in 2023, the CNAD has authorized approximately 125 companies out of a total of 450 applications, receiving between five and ten new applications weekly from companies in Latin America, Europe, and Asia, attracted by the country’s regulatory clarity. Juan Carlos Reyes, president of the CNAD, highlighted that tokenization democratizes access to investments previously reserved for large capital, allowing participation starting at amounts of US$10 or US$100 in projects that generate attractive returns. Blockchain technology provides traceability and immutability to transactions, generating greater confidence in the system and reducing capital structuring costs. El Salvador is positioning itself as the region’s most advanced regulatory hub for digital assets, with an ecosystem that attracts international investment and opens new financing avenues for the country’s real estate and industrial development.
Cryptocurrency remittances grew by 44.3% in El Salvador, and total remittances exceeded $3.286 billion in the first four months of the year
Family remittances received in El Salvador via cryptocurrency wallets reached US$23.1 million between January and April 2026, a 44.3% increase compared to the same period in 2025, according to data from the Central Reserve Bank (BCR). This growth reflects the increased adoption of digital tools for sending money from abroad and the advancement of the digital asset ecosystem in the country. At the same time, the total flow of family remittances received in the first four months of 2026 reached US$3,286.72 million, an increase of US$209.79 million compared to the US$3,076.93 million recorded in the same period of 2025. Remittances are one of the main drivers of the Salvadoran economy, sustaining household consumption and domestic demand. The dynamic use of digital wallets for sending remittances positions El Salvador as a laboratory for financial innovation in the region, with an increasingly robust digital infrastructure for receiving international flows.
El Salvador records sustained economic growth above 4% in the first quarter of 2026
El Salvador’s economic activity grew by 4.2% in March 2026, maintaining a steady pace above 4% throughout the first quarter, with growth of 4.8% in January and 4.0% in February, according to the Economic Activity Volume Index (IVAE) published by the Central Reserve Bank (BCR). The most dynamic sectors were financial and insurance activities (+5.9%), professional, scientific, and technical services (+5.8%), and trade, transportation, and warehousing (+5.0%), reflecting an increasingly diversified economy oriented toward high-value-added services. Real estate activities grew by 4.4%, their best result since March 2025, while public administration and defense advanced by 4.7% and industrial production by 2.7%. Construction, a key driver throughout 2025, saw its growth moderate to 4.3%, and it continues to post positive rates within an expansionary cycle that has seen double-digit growth for over two years. This consistent performance reaffirms the strength and resilience of the Salvadoran economy as a reliable destination for investment.
Business confidence in Guatemala rose 8.56% in May, and analysts maintain their GDP growth forecast at 3.8% for 2026
The Bank of Guatemala’s Panel of Private Analysts maintains its real GDP growth forecast at 3.8% for 2026, with the first quarter closing at 3.7%, reflecting economic stability despite external pressures from energy prices. The good news comes from the Economic Activity Confidence Index, which reached 55.94 points in May—an 8.56% jump from April and 1.97% higher than in May 2025—indicating that the private sector sees favorable conditions for continued investment and operations. Inflation is projected at 4.13% by the end of 2026, within BANGUAT’s target range, with prospects of stabilizing in the medium term around 3.65% over five years. Cesar Falcon, president of ASONAV, stated that despite global pressures on fuel prices, he does not foresee a recession and that companies are continuing with their investment plans. Guatemala is demonstrating economic resilience with steady growth, controlled inflation, and rising business confidence, consolidating its appeal as an investment destination in the region.
Peru finalizes FTA with Guatemala after 15 years, ushering in a new era of bilateral trade and investment
Peru delivered to Guatemala the diplomatic note ratifying the bilateral Free Trade Agreement, completing the final step for its entry into force fifteen years after it was initially signed in 2011, during a ceremony held in Lima attended by the foreign ministers and trade ministers of both countries. The agreement, which includes an Amending Protocol negotiated in 2024 to unblock its implementation, establishes a modern and predictable legal framework that will provide greater certainty to economic operators and open new opportunities for trade, investment, and bilateral cooperation. In 2025, trade between the two countries reached approximately US$206 million, with Guatemala as Peru’s third-largest trading partner in Central America. Peruvian exports to Guatemala total US$132 million in agricultural, chemical, pharmaceutical, and metalworking goods, while Guatemala exports mainly sugar. The entry into force of the FTA will diversify exportable goods, promote production chains, and facilitate the participation of more companies, especially micro and small enterprises (MSEs), in trade between the two nations.
Guatemala passes new anti-money laundering law with the support of 150 lawmakers to boost investor confidence
The Guatemalan Congress passed the Law Against Money Laundering and Other Assets and the Financing of Terrorism, with the support of 150 of the 160 lawmakers, replacing a legal framework that had been in place for more than 25 years. The new legislation, urged by the private sector, strengthens transparency, competitiveness, and the confidence of investors, business partners, and international financial institutions, while also improving the government’s capacity to prevent criminal networks. The Coordinating Committee of Agricultural, Commercial, Industrial, and Financial Associations (CACIF) applauded the initiative, noting that it complies with the standards of the Financial Action Task Force (FATF). The U.S. Embassy had urged Congress to pass the law to close the door on drug trafficking and money laundering that affect both nations. With this legal reform, Guatemala takes a decisive step toward improving its business climate, reducing regulatory compliance risks, and establishing itself as a more attractive and secure destination for foreign investment.
Honduras strengthens its financial stability with international reserves of US$11.425 billion and rising private credit
The Central Bank of Honduras (BCH) reported that Net International Reserves (NIR) stood at US$11,425.4 million as of May 21, 2026, an increase of US$1,206.3 million from the end of 2025, with import coverage of 6.6 months, exceeding the target set in the agreement with the IMF. This strengthening of the external position is driven by robust family remittances, strong export performance, and sustained growth in public deposits, generating a positive net foreign exchange income gap of US$1,445.9 million—nearly double the US$769.6 million recorded on the same date in 2025. Deposits in the financial system recorded year-over-year growth of 13.0%, driven by household deposits, strengthening the funding base and the banking sector’s intermediation capacity. Credit to the private sector grew by 6.0% year-over-year, with financing directed primarily toward real estate, agriculture, services, and households. These indicators confirm Honduras’ macroeconomic and financial strength, reinforcing the confidence of investors and international organizations in the country’s stability.
Honduras launches strategic alliance between logistics and investment to create 100,000 jobs
The government of President Nasry Asfura announced the signing of a cooperation agreement between the National Logistics Council (CNL) and the National Investment Council (CNI), with the goal of creating 100,000 jobs and fostering a favorable business environment in Honduras. The agreement, signed at the Presidential Palace by Commissioner Yaudet Burbara and Executive Secretary Epaminondas Marinakys, seeks to modernize the national logistics infrastructure and improve conditions to attract domestic and foreign investment. This alliance is part of the government’s strategy to strengthen institutional coordination among key agencies involved in the country’s economic development. The integration of logistics and investment is considered essential for reducing operating costs, improving competitiveness, and boosting high-impact productive sectors. Honduras is committed to this model of inter-institutional cooperation as a driver of job creation and sustainable economic development.
Honduras and Israel are expanding their cooperation in agriculture, technology, and education through a new bilateral agenda
Honduras and Israel signed an addendum to the Bilateral Cooperation Plan during a ceremony in Tegucigalpa presided over by Honduran Foreign Minister Mireya Aguero and the director of the Israel International Cooperation Agency (MASHAV), Eynat Schlein, expanding and modernizing the joint agenda in agriculture, education, security, and technology. The agreement, which reinforces a diplomatic relationship spanning more than seven decades, includes specialized training, scholarships, expert exchanges, and technical assistance to facilitate the adoption of internationally recognized best practices. Technical delegations from both countries participated in preliminary meetings to define the scope of the cooperation, with the participation of the Honduran Undersecretary for International Cooperation, the Israeli ambassador, and government advisors. Such partnerships with countries that are leaders in agricultural and technological innovation, such as Israel, represent a valuable contribution to the modernization of Honduras’s productive sector. Bilateral cooperation strengthens human capital, promotes technology transfer, and opens new opportunities for the country’s sustainable development.
Honduras’ coffee exports rise 18.5% and generate $1.894 billion in the first eight months of the harvest
Coffee export revenues in Honduras totaled US$1.894 billion in the first eight months of the 2025-2026 harvest, an increase of 18.5% compared to the same period last year, according to the Honduran Coffee Institute (IHCAFE). Export volume reached 5.87 million quintals, 30.5% more than in the equivalent period of the previous harvest, with foreign sales growing 30.2% year-over-year to US$1.1297 billion. The European market has established itself as the leading buyer, accounting for 52% of exported production, followed by North America with 42%. Coffee contributes more than 5% to Honduras’ GDP and accounts for nearly 30% of agricultural GDP, with 120,000 producers—90% of whom are small-scale—and approximately one million jobs generated in the harvesting, processing, and transportation stages. This strong export performance reaffirms Honduras’ potential as a top-tier coffee producer and consolidates the sector as a driver of foreign exchange, rural employment, and economic development.
Nicaragua’s exports surge 33.5% in the first quarter of 2026, driven by gold, coffee, and meat
Nicaragua’s exports, including goods and free-trade zone merchandise, reached US$2.7682 billion in the first quarter of 2026, representing year-over-year growth of 33.5%, according to the Foreign Trade Report from the Central Bank of Nicaragua (BCN). The export momentum was driven primarily by rising international prices and higher sales volumes of key products, including gold, coffee, beef, farm animal harnesses, African palm oil, cigar tobacco, and processed fishery and aquaculture products. As a result, the trade deficit fell to just US$102.6 million, 84% of the first quarter of 2025, while imports grew by only 5.7% to US$2,870.8 million. The terms of trade improved by 14.7% due to a 14.2% increase in average export prices and a slight 0.5% decline in import prices. This exceptional export performance confirms the strength of Nicaragua’s external sector and its growing competitiveness in international markets.
BLP INSIGHT
Constitutional Ruling Redefines the Limits of Tax Authority in Honduras
The Constitutional Chamber of the Supreme Court of Justice of Honduras declared unconstitutional several provisions of Legislative Decree No. 113-2011, the “Law on Efficiency in Public Revenue and Expenditure.” The ruling, brought by the Honduran Private Enterprise Council (COHEP), redefines the limits of the State’s taxing power and reaffirms taxpayer rights against confiscatory measures. Learn about the key aspects of this decision and its practical implications in our latest Newsflash.
ECONOMIC INDEX
| Country | Exchange Rate (local currency per USD) | Basic Passive Rate (local currency) | Monetary Policy Rate | S&P | Moody’s | Fitch | Year-on-Year Inflation |
|---|---|---|---|---|---|---|---|
| Costa Rica | 563.58 | 3.65% | 3.25% | BB | Ba2 | BB | -1.63% |
| El Salvador | 8.75 | 4.75% | N/A | B- | B3 | B- | 2.16% |
| Guatemala | 7.61 | 4.74% | 3.50% | BB+ | Ba1 | BB+ | 3.24% |
| Honduras | 26.66 | 6.80% | 5.75% | BB- | B1 | N/A | 5.56% |
| Nicaragua | 36.62 | 1.10% | 5.75% | B+ | B2 | B | 3.99% |
06/06/2026 | Source: secmca.org
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