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.
From March 15 to 21, 2025
IDB, JICA, EIB, and AFD are interested in financing projects to strengthen the National Electric System. During March, teams from the Costa Rican Electricity Institute (ICE), the Inter-American Development Bank (IDB), and the Japan International Cooperation Agency (JICA), assessed strategic electricity infrastructure projects and their financing in technical missions. “Based on the joint analysis between the technical teams, we will advance in the definition of key financing to build and strengthen the country’s electricity infrastructure,” said Marco Acuña, president of ICE Group. Click for more information
PROCOMER reached more than 100 investments in 2024, according to statistics from the entity. Costa Rica consolidated the arrival of 61 new Foreign Direct Investment (FDI) projects in 2024, according to data from the Foreign Trade Promoter (PROCOMER). The amount represents an increase of two new attractions compared to the data for 2023. To this result must be added the 100 reinvestments generated through companies that already have operations in national territory. This means that the accumulated number of projects generated through FDI reached 161 at the end of the previous year. Click for more information
Sergio Díaz-Granados, president of CAF, on the Bank’s role in Costa Rica: We aspire to generate financing opportunities for the public and private sectors. In December 2024, Costa Rica will sit for the first time on the board of the Development Bank of Latin America and the Caribbean (CAF) as a full member, which facilitates access to financing from the regional organization. Díaz-Granados spoke about the bank’s role in Costa Rica, the public and private financing options available, and the growth prospects he envisions for the country. Click for more information
Costa Rica strengthens its network of suppliers to attract high-value-added foreign investment. With the aim of sharing data, trends and perspectives to companies in the ecosystem of attracting foreign direct investment (FDI), the Foreign Trade Promoter of Costa Rica (PROCOMER) brought together more than 70 companies from PROCOMER’s FDI Suppliers Catalog in the event, “Horizon 2025: Keys for foreign direct investment.” Click for more information
PROCOMER makes available more than $8 million to train human talent and increase employability. To contribute to the training and specialization of Costa Rican human talent and expand employment opportunities, the Foreign Trade Promotion Agency of Costa Rica (PROCOMER) is making available to exporting companies and companies with export potential (Definitive Regime) the Incentive for the Development of Human Talent. This initiative consists of co-financing that will allow them to cover the training needs of their current employees and/or those in the process of being hired. Click for more information
IDB approves $500 million to support economic and fiscal sustainability under IMF agreement. The Inter-American Development Bank (IDB) approved a $500 million loan to support reforms aimed at promoting El Salvador’s macroeconomic and fiscal sustainability under the program with the International Monetary Fund (IMF). This financing will provide fiscal breathing room for the Salvadoran government as it implements reforms to ensure increased fiscal revenues and reduced public debt while rebuilding international reserves and improving governance and financial integrity. Click for more information
Large taxpayers must complete their incorporation to electronic invoicing in 2025. The incorporation of large taxpayers into the electronic invoice system must be completed this year, according to the Ministry of Finance in the Fiscal Plan 2025-2027, one of the documents presented to the International Monetary Fund (IMF) within the framework of the agreement to obtain $1.4 billion in financing. Click for more information
The Treasury proposes to raise revenues to 26.3% of GDP by 2027. The Ministry of Finance has set a goal for total revenues of the Non-Financial Public Sector (NFPS) to reach 26.3% of gross domestic product (GDP) by 2027, according to the fiscal plan it will execute over the next three years. In 2024, these revenues reached 25.6% of the GDP, according to the institution. In the document, the entity states that the plan to increase tax revenues has three objectives: “to improve collection performance, promote tax efficiency, and broaden the tax base.” Click for more information
As of May 1, the Treasury will not accept payments in Bitcoin. It will only receive the payment of taxes in dollars, as indicated in the reform to the Bitcoin Law made last January, which eliminates article 4 that stated: “All tax contributions may be paid in Bitcoin.” Likewise, he indicated that the work procedures, applications, and accounting system will be updated to respond to the new regulation and requested that taxpayers be informed of the change. Click for more information
Air exports grew by 7% in January. Air exports experienced a year-on-year growth of 7.2% last January, according to the Autonomous Port Executive Commission (CEPA). The institution’s latest report, released at the end of February, shows that in January 2025, 1.4 million kilograms of goods were exported through El Salvador’s San Óscar Arnulfo Romero y Galdámez International Airport, 99,359 kilograms more than the 1.3 million recorded in the same period of 2024. Click for more information
S&P mission conducts a sovereign review. A delegation from Standard & Poor’s (S&P) began a review and is scheduled to meet with different sectors; among them, the Ministry of Public Finances, Banco de Guatemala, as well as various business chambers, among others. The objective is to follow up on the recommendations made in previous visits and, given the compliance in recent months, the result is expected to be positive, according to Guatemalan authorities. Click for more information
Citizens’ Budget 2025 is published to learn about public spending. The Ministry of Public Finances (MIFIN) published the Citizen Budget 2025, a document that summarizes the General Budget of Income and Expenditures of the State for the Fiscal Year 2025. This budget was approved by the Congress of the Republic for an amount of Q148 thousand 526.0 million. Click for more information
Apparel items led Guatemala’s exports in 2024. Here we find products such as T-shirts, shirts, sweaters, and cotton blouses, as well as some made of synthetic fibers, among others, explained the vice minister of Integration and Foreign Trade, Héctor Marroquín, quoted by Publinews. Most of this sector’s products go to the United States, Central America, and other countries. We closed 2024 with exports totaling $14.588 billion, a growth of 2.8 percent over the previous year. Click for more information
FAO seeks to find agrifood models with Guatemala to reduce environmental impact. Guatemalan authorities and the United Nations Food and Agriculture Organization (FAO) are seeking to implement alternatives in agricultural production to reduce environmental impact and carbon dioxide emissions, FAO policy officer for the country Marco Moncayo told EFE. Click for more information
Guatemala makes third-party insurance mandatory for all vehicles. The Government of Guatemala announced that as of May, all vehicles will be required to have third-party insurance in case of accidents. Click for more information
Honduras would receive $125 million from the IMF without major complications. The popular phrase “locked like in the bank” would be reflected with a new disbursement of $125 million that Honduras will receive from the International Monetary Fund (IMF) in the next few days after the approval of the third revision of the agreement signed with this international organization, according to economists’ expectations. Click for more information
Economic activity grows 4.2% due to higher domestic demand for goods and services. The monthly indicator of economic activity (IMAE) in Honduras reported a growth of 4.2% in January, driven by increased domestic demand for goods and services, according to a report released by the Central Bank (BCH). The positive trend of the IMAE was influenced by the recovery of the agricultural sector, highlighting the increase in the production of coffee, basic grains, and fishing and poultry products, said the State’s issuing bank. Click for more information
BCH stops the devaluation of the Reference Exchange Rate. The Central Bank of Honduras (BCH), which is responsible for the auction of foreign currency in the country, has begun to slow down the devaluation of the Reference Exchange Rate (TCR) of the lempira against the dollar. The authorities of the Central Bank have not disclosed the factors that are impacting the revaluation of the national currency in the Electronic Foreign Exchange Negotiation System (SENDI). Click for more information
Inter-annual energy generation grew 1.4% in January. The generation of electric energy in Honduras was higher by 1.4% in the first month of the year, compared to the same month of 2024, even though the demand for fuel to generate electricity was lower. The January fuels report, released by the Central Bank of Honduras (BCH) details that, in the first month of 2025, the consumption of imported oil derivatives for electricity generation was lower by 33.6%, compared to the previous year. Click for more information
Remittances to Honduras grew by 19.7 % between January and February due to US immigration policy. Honduras received $1.628 billion in remittances between January and February 2025, representing an increase of 19.7 % compared to the same period in 2024, amid the uncertainty caused by the policy of mass deportation of undocumented immigrants by US President Donald Trump. According to official data, 85.3% of remittances sent to Honduras come from the United States, where more than one million Hondurans live, most of them undocumented. Click for more information
Nicaragua announces the start of construction of a photovoltaic plant financed by China. The Government of Nicaragua announced the start of construction of a 67.35-megawatt photovoltaic power plant, with $67.97 million financed by the People’s Republic of China. The co-president of Nicaragua, Rosario Murillo, said that the works of the solar project ‘“El Hato” will be inaugurated in the municipality of Ciudad Darío, department (province) of Matagalpa (north), on Monday, March 24, by the Ministry of Energy and Mines. The contract for this multi-million-dollar loan includes the financing, design, supply, and assembly of the plant called “El Hato”. Click for more information
Gross Foreign Direct Investment income in Nicaragua increased by 8.6% in the second half of 2024. The Central Bank of Nicaragua (BCN) published on March 20, 2025, the Report on the evolution of Foreign Direct Investment (FDI) in Nicaragua for the second half of 2024, which highlights that gross FDI inflow during that period amounted to $1.343 billion, 8.3 percent higher than in the same period of 2023 ($1.24 billion). The net FDI flow was $563.1 million, 74.3 percent higher than that received in the same period of 2023 ($323.1 million). Thus, in 2024, gross FDI inflows totaled $3.04 billion, 8.6 percent higher than in 2023 ($2.799 billion). Click for more information
Evolution of interest rates on loans in Nicaraguan banks in 2025. Interest rates experienced a mixed behavior in the first two months of this year, with an increase being the prevailing trend. On average, the interest rate in the banking system up to February was 10.48%, higher than the 9.76% up to December of last year, according to figures from the Central Bank of Nicaragua. By type of currency, loans in dollars showed an upward trend, even though international access to that currency has become cheaper in recent months. On average, loans in dollars stood at 10.52%, slightly higher than 9.76% last December. Click for more information
Central Bank of Nicaragua presents results of the Gross Domestic Product for 2024. The Central Bank of Nicaragua (BCN) published on March 19, 2025, the results of the Gross Domestic Product (GDP) for 2024, which indicate that the economic activity registered a growth of 3.6 percent in real terms (4.4% in 2023). Among other activities, growth in construction (18.1%), hotels and restaurants (10.7%), commerce (6.2%), financial intermediation and related services (5.7%), transportation and communications (4.4%), and water (4.2%) were noteworthy. Click for more information
Insurtech sector in Central America grew by 35% in the last year, according to a report. The Insurtech ecosystem continues to show remarkable growth in Central America, with a 35% increase in the number of startups in the last year. This growth far exceeds the 5% recorded in Latin America as a whole, highlighting the region as a key point of innovation in the sector. Click for more information
ECONOMIC INDEX
| Country | Exchange rate (x USD) | Basic passive rate in local currency | Current monetary policy rate | S&P sovereign debt indicator | Moodys Sovereign Debt Indicator | Fitch indicator | Interannual Inflation |
|---|---|---|---|---|---|---|---|
| Costa Rica | 503,04 | 4,04% | 4,00% | B | B1 | BB | -0,84% |
| El Salvador | – | 5,84% | Not available | B- | B3 | B- | 0,46% |
| Guatemala | 7,70 | 3,56% | 4,50% | BB- | Ba1 | BB | 1,54% |
| Honduras | 25,61 | 6,16% | 5,75% | BB- | B1 | No rating | 3,41% |
| Nicaragua | 36,62 | 3,00% | 6,25% | B+ | B2 | B | 2,12% |
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