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.
Exchange Rate (local currency per USD)
457.80
Basic Passive Rate (local currency)
3.57%
Monetary Policy Rate
3.00%
Sovereign Debt (S&P / Moody’s / Fitch)
BB / Ba2 / BB
Year-on-Year Inflation
0.34%
08/10/2026 | Source: secmca.org
Costa Rica Strengthens Its Appeal to Foreign Investment with 23.4% Growth in the First Half of the Year
Foreign direct investment in Costa Rica grew 23.4% in the first half of 2026 compared with the same period in 2025, even after excluding the acquisition of beverage company FIFCO, with inflows reaching US$2,739.6 million, according to a PROCOMER analysis based on preliminary data from the Central Bank. Foreign Trade Minister Indiana Trejos highlighted strong investment performance in free trade zones, as well as growth in new capital and reinvestments. In free trade zones, investment flows rose from US$1,283.7 million to US$1,736.3 million, a 35% increase, while investment in free trade zones outside the Greater Metropolitan Area reached US$149.6 million, a 37% increase. PROCOMER’s General Manager, Laura López, highlighted the double-digit growth in investment outside the Greater Metropolitan Area (GAM), which supports the strategy of attracting investment to different regions of the country. By country of origin, the United States accounted for 68.9% of FDI, followed by Switzerland with 5.7% and Spain with 5.1%, while the manufacturing sector recorded US$1,951.5 million, a 9.8% increase, and the services, agriculture, and agribusiness sectors showed significant growth. These results confirm international investors’ sustained confidence in Costa Rica.
Costa Rica Is Nearing Accession to the Trans-Pacific Partnership, the Gateway to a Market of More Than 600 Million Consumers
Costa Rica has concluded its negotiations to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a bloc of 12 nations that accounts for 15% of global GDP and represents a market of more than 600 million consumers. The remaining step is ratification by the Legislative Assembly, while President Laura Fernández has called on the relevant sectors to participate in a roundtable discussion to thoroughly analyze the benefits and potential impacts before a decision is made. Joining the agreement would give the country preferential access to Japan, Australia, Malaysia, New Zealand, Vietnam, and Brunei—markets with which it currently has no free trade agreement. Rodney Salazar, president of the Chamber of Foreign Trade, emphasized that market diversification is a form of economic resilience in the face of greater geopolitical uncertainty and protectionist measures. Membership in the bloc would also strengthen Costa Rica’s position as a hub for production, investment, and exports to the Asia-Pacific region—an additional draw for investors already operating in the country.
Costa Rica Is Turning Puntarenas into Its New Solar Power Hub
The Costa Rican Electricity Institute (ICE) is promoting the construction of seven solar power plants in four cantons of the province of Puntarenas, with a total investment of US$200 million that will add 170 megawatts of installed capacity to the National Electric System. The private sector will build six of these plants under Law No. 7200, with funding exceeding US$100 million, while ICE will develop the 80-megawatt Las Delicias Solar Photovoltaic Project in Montes de Oro. The projects will be located in the cantons of Puntarenas (Cóbano district), Parrita, Garabito, and Montes de Oro, and will begin operations in 2028. The new solar cluster will generate 347 gigawatt-hours per year—equivalent to the consumption of approximately 580,000 Costa Ricans—and will diversify the national electricity mix, increasing its resilience to phenomena such as El Niño. Grupo ICE President Marco Acuña emphasized that this is an unprecedented investment in the province that will create decent jobs, involve local suppliers, and foster productive linkages. This initiative opens up concrete opportunities for private investors in renewable energy generation in Costa Rica.
Costa Rica Strengthens Its Leadership in Services and Exceeds US$9.4 Billion in Exports
Costa Rican exports of services, excluding travel, reached US$6,057 million in the first half of 2026, a 3% increase compared to the same period last year, according to Central Bank data analyzed by PROCOMER. Business services, which account for 64% of the total, grew by 10% and contributed an additional US$363 million, while information and communication technology services, with a 22% share, increased by 7%. When travel is included, service exports total US$9,414 million—a 5% increase and US$453 million more than a year earlier—and knowledge-intensive services now account for 56% of the total, up from 54% in the first half of 2025. Foreign Trade Minister Indiana Trejos highlighted an increasingly diverse export portfolio focused on high-value-added services. PROCOMER General Manager Laura López noted that the country continues to consolidate an export portfolio based on knowledge and specialized talent, with companies adopting increasingly sophisticated processes. Over the past four years, service exports including travel have grown from US$6,512 million to US$9,414 million, confirming the strength of this sector as a driver of growth and investment.
Costa Rica Moves Forward with a Passenger and Freight Train Between Alajuela and the Central Pacific
The Central American Bank for Economic Integration (CABEI) approved technical cooperation funding of US$1,575,000 to support the National Concessions Council and the Costa Rican Railway Institute in conducting pre-feasibility and feasibility studies for the Central Pacific Railway, a project aimed at restoring the rail connection between Alajuela and the Central Pacific region. The studies will analyze the technical, economic, financial, environmental, social, and legal feasibility of a system covering Alajuela, Ciruelas, El Coyol, Esparza, and Puntarenas, with a connection to the Port of Caldera. For passenger service, the project proposes a modern alternative to improve mobility between the Greater Metropolitan Area and the Central Pacific; for freight, it aims to facilitate the transport of goods to and from Caldera, with more integrated and competitive logistics. The catchment area encompasses 15 districts and more than 180,000 residents. The project is currently in the profile stage within the Public Investment Project Bank, and this cooperation will enable progress toward the pre-feasibility and feasibility phases that will inform decisions regarding its development, thereby opening new investment opportunities in rail infrastructure and logistics for the country.
Exchange Rate (local currency per USD)
8.75
Basic Passive Rate (local currency)
4.62%
Monetary Policy Rate
N/A
Sovereign Debt (S&P / Moody’s / Fitch)
B- / B3 / B-
Year-on-Year Inflation
3.19%
08/10/2026 | Source: secmca.org
El Salvador Accelerates Its Growth with a 5.1% Expansion in the Second Quarter
El Salvador’s economy grew 5.1% year-over-year in the second quarter of 2026, reaching a GDP of US$10,060.6 million—US$926.5 million more than a year ago. Construction led the expansion with 11.2% growth, driven by real estate, commercial, tourism, logistics, and infrastructure projects, while construction credit increased by 30.9% and housing financing by 65.1%. Other standout sectors included healthcare, electricity, mining, recreation, and professional services, reflecting broad-based growth across most productive sectors. Domestic demand was supported by US$2,625 million in remittances during the quarter, while cement consumption grew by 19.9%, a sign of increased construction activity. Overall, the results show an economy underpinned by higher investment, a dynamic services sector, and solid domestic demand, although the agriculture and personal services sectors recorded slight contractions.
El Salvador Receives Further Support from the IMF and Makes Progress in Its Economic Recovery
The IMF approved the second and third reviews of El Salvador’s economic program, authorizing an immediate disbursement of US$138 million and confirming progress in macroeconomic management. The economy has outperformed forecasts, supported by sustained improvements in security and greater investor confidence, while international reserve and liquidity targets were comfortably met. The program provides for total financing of nearly US$1.4 billion over 40 months and has shown progress in financial reforms, fiscal transparency, and anti-money laundering measures. For the next phase, the country must continue to reduce fiscal imbalances, strengthen reserves, and resume reforms in pensions and public administration, while preserving priority social spending. The IMF also highlighted progress in reducing the government’s stake in Bitcoin and noted that improvements in governance, infrastructure, and labor market capabilities could drive greater investment and more inclusive and sustainable growth.
The World Bank Projects That Private Investment Will Drive El Salvador’s Growth in 2026
The World Bank projects 4.5% growth for El Salvador in 2026, the third-highest rate in Latin America, surpassed only by Paraguay and the Dominican Republic—both at 4.7%—and well above the 2.2% expected for the region as a whole. Unlike most Latin American economies, where private consumption is the main driver of growth, El Salvador stands out alongside Peru because private investment is expected to be the primary driver. Construction is driving this expansion, with real estate, commercial, tourism, logistics, and public infrastructure projects, and the Salvadoran Chamber of Construction projects investment in the sector this year to range from US$3.5 billion to US$5.0 billion. According to the Central Reserve Bank, gross fixed capital formation grew by 9.29% in the second quarter. The report also highlights the improvement in the country’s risk profile over a short period, supported by fiscal consolidation efforts and robust private investment—factors that reinforce El Salvador’s appeal to new investors.
The U.S. Highlights El Salvador as an Investment Destination Due to Its New Reforms and Incentives
The U.S. Department of State notes that El Salvador has become an increasingly attractive destination for investors thanks to a package of legal reforms, tax incentives, improved security, and the use of the dollar as legal tender. Among the most significant changes is the banking reform of March 2026, which allows up to 100% foreign ownership in Salvadoran banks, facilitating the entry of international financial groups. A 3% withholding tax on capital gains for foreign investors in the stock market was also eliminated, and new legal frameworks were created for investment banking and alternative funds. These measures aim to boost capital markets, infrastructure projects, technology, and digital assets, as well as attract greater flows of international investment. The report also highlights the US$1.4 billion agreement with the IMF and the fiscal and financial reforms aimed at strengthening economic stability and creating conditions for sustainable growth.
Exchange Rate (local currency per USD)
7.64
Basic Passive Rate (local currency)
4.62%
Monetary Policy Rate
3.50%
Sovereign Debt (S&P / Moody’s / Fitch)
BB+ / Ba1 / BB+
Year-on-Year Inflation
4.69%
08/10/2026 | Source: secmca.org
Guatemala Launches a Tender for 600 MW of Firm Power to Support Its Growth
Guatemala has launched a tender to procure 600 MW of firm power starting in May 2032, with the goal of ensuring a reliable supply in the face of rising demand and the effects of weather conditions. The process calls for 450 MW from new plants and 150 MW from existing plants, through contracts of up to 15 years, with options such as natural gas and geothermal energy for the new facilities. Peak system demand reached 2,301 MW in 2026, an 8.6% increase from 2025, while hydroelectric generation fell 25.5% in August due to the drought. The call for bids could generate investment opportunities exceeding US$1 billion if gas-fired generation projects are developed, in addition to facilitating the financial structuring of new power plants. Technical proposals will be accepted in April 2027, and the award is scheduled for May, in a process aimed at strengthening energy security and supporting the country’s economic expansion.
The Bank of Guatemala Identifies 13 Laws That Could Boost the Country’s Potential Growth
The Bank of Guatemala identified 13 laws that could boost the country’s potential growth to nearly 5%; of these, 10 have already been approved and three remain pending. The reforms cover strategic areas such as road and port infrastructure, public-private partnerships, free trade zones, foreign investment, competition, housing, digitization, and anti-money laundering. Among those pending are the laws on Public Procurement, the Secondary Securities Market, and Electronic Payment Methods, which are considered key to improving public sector performance, mobilizing capital, and reducing transaction costs. BANGUAT notes that these measures could boost productivity, attract investment, and strengthen competitiveness, especially if complemented by infrastructure and human capital. The main challenge will be to accelerate the regulation and effective enforcement of the laws, so that the approved reforms translate into greater investment, employment, and economic growth.
Guatemala Boosts Tourism with 96,000 Cruise Ship Visitors and Aims for New Records
Guatemala expects to welcome 45 cruise ships and nearly 96,000 tourists over the next eight months, generating an estimated US$8 million in economic revenue for the country. The season began with the arrival of the “Queen Elizabeth,” carrying 1,863 passengers, and will primarily use Puerto Quetzal as its main port of entry, with Santo Tomás de Castilla serving as a secondary port. Antigua Guatemala, the coffee plantations, and chocolate-related experiences are among the main attractions for visitors, who come primarily from the United States, Canada, the United Kingdom, and Germany. The sector views cruise ship activity as a key driver for local economies and an opportunity to promote future, longer-duration visits. This growth adds to the nation’s tourism momentum, following Guatemala’s reception of 3.3 million visitors in 2025 and projections to reach 3.6 million in 2026 and 4 million in 2027.
Exchange Rate (local currency per USD)
26.88
Basic Passive Rate (local currency)
7.18%
Monetary Policy Rate
6.00%
Sovereign Debt (S&P / Moody’s / Fitch)
BB- / B1 / N/A
Year-on-Year Inflation
6.20%
08/10/2026 | Source: secmca.org
Honduras Launches Major Water and Electricity Modernization Project with US$247 Million
Honduras will allocate US$247 million to modernize its drinking water and electricity infrastructure, strengthening strategic services essential to the country’s growth. Of that amount, US$177 million will be allocated to the electricity system through a loan from CAF, which will enable the construction of approximately 150 kilometers of 230-kV transmission lines, two new substations, and upgrades to four other facilities. The electricity projects will benefit some 865,000 people and increase the grid’s capacity and reliability to meet growing energy demand. Additionally, the IDB will contribute US$70 million to improve the drinking water supply in Tegucigalpa, with an estimated impact on 345,000 residents through the renovation of pipes, pumping systems, sectorization, and digital management tools. Collectively, the projects represent a significant boost to Honduras’ infrastructure and aim to enhance the quality, continuity, and efficiency of essential services.
Honduras Shows Economic Resilience with 2.7% Growth in the Second Quarter
The Honduran economy posted year-over-year growth of 2.7% in the second quarter of 2026, according to the Central Bank of Honduras, driven by strong performance across various economic sectors, tax revenue, and private consumption, amid a challenging international environment marked by geopolitical conflicts and their impact on commodity prices. Compared to the previous quarter, the economy grew by 0.5%, with positive contributions from financial intermediation and public administration and defense, followed by agriculture, livestock, forestry, and fishing; electricity and water distribution; and construction. From an expenditure perspective, the result was supported by an increase in final consumption, both public and private. The Central Bank highlighted the economy’s ability to maintain its momentum in a complex external environment, which reinforces confidence in the strength of its fundamentals among those evaluating investment opportunities in Honduras.
COHEP Analyzes the Adjustment to Honduras’ Monetary Policy Rate and Its Effect on Savings
The Honduran Council of Private Enterprise (COHEP) analyzed the increase in the monetary policy rate from 5.75% to 6.00%, adopted by the Central Bank of Honduras effective September 21, 2026, and estimated that its effects will be felt with a lag and will begin to be observed in seven to nine months. According to the analysis presented by Mauricio Elvir, COHEP’s Economic Policy Officer, higher rates may encourage saving, while complementary measures could help address supply-side pressures and boost productive activity. The Central Bank explained that the adjustment aims to contain additional price pressures, prevent second-round effects stemming from the increase in fuel prices, and keep inflation expectations anchored, thereby preserving macroeconomic stability without significantly affecting the momentum of economic activity. The measure also seeks to prevent arbitrage by aligning the increase with that implemented by the U.S. Federal Reserve in its benchmark rate. This preventive action by the Central Bank, combined with technical monitoring by the private sector, strengthens the predictability of financial conditions for those who save, invest, and conduct business in Honduras.
Exchange Rate (local currency per USD)
36.62
Basic Passive Rate (local currency)
1.14%
Monetary Policy Rate
5.75%
Sovereign Debt (S&P / Moody’s / Fitch)
B+ / B2 / B
Year-on-Year Inflation
4.00%
08/10/2026 | Source: secmca.org
Nicaragua Makes Progress on the Construction of Punta Huete International Airport
The Ministry of Transportation and Infrastructure reported that the Punta Huete International Airport project is 34% complete overall, ahead of schedule for 2026. MTI Minister Óscar Mojica explained that the 3,600-meter hydraulic concrete runway, along with the main taxiway, has already been completed, and that the next phase will widen the runway from 45 to 75 meters to accommodate heavy-lift aircraft. More than 950 workers and 625 pieces of specialized equipment are participating in the construction across 37 work sites, with over 9,600 metric tons of steel structure installed. A recent milestone was the computer-controlled hoisting of the passenger terminal roof—a 360-metric-ton component installed in coordination with the Chinese company CAMCE. The project also includes 14 kilometers of four-lane hydraulic concrete access road, four kilometers of which are already complete. Authorities plan to finish the project ahead of the official 2028 deadline, expecting to strengthen connectivity, investment, employment, and the country’s tourism and logistics sectors.
Exchange Rate (local currency per USD)
874.73
Basic Passive Rate (local currency)
N/A
Monetary Policy Rate
N/A
Sovereign Debt (S&P / Moody’s / Fitch)
NR / C / NR
Monthly Inflation (September 2026)
8.40%
08/10/2026 | Source: bcv.org.ve
The Venezuelan Chemical Industry Opens Its Doors to Foreign Investment and Sees Potential for Growth
Reinaldo Gabaldón, president of the Venezuelan Association of the Chemical and Petrochemical Industry, stated that the sector is not opposed to the arrival of foreign investors and that the association has already begun to receive inquiries from international players interested in evaluating business opportunities. Consultations with members confirm a favorable stance toward forming strategic partnerships with investors from other countries. According to Gabaldón, the industry’s available installed capacity—which produces inputs for various productive sectors—represents an opportunity for continued growth, against the backdrop of a slight recovery in domestic manufacturing production and sales. The leader emphasized that the sector has the infrastructure to expand its operations, making it attractive to partners seeking to join an industry with room to grow. The association’s willingness to partner with international capital opens an opportunity for investors interested in the Venezuelan chemical and petrochemical market.
LATAM Airlines Will Resume Its Direct Flights Between Santiago and Caracas Starting in January 2027
LATAM Airlines, Latin America’s largest airline group, announced the resumption of its direct flights between the capitals of Chile and Venezuela beginning January 3, 2027. The route will operate four times a week—on Mondays, Wednesdays, Fridays, and Sundays—using Airbus A320neo aircraft for a flight time of approximately six hours and forty minutes, and the airline projects it will carry more than 50,000 passengers in its first year. This announcement complements the Caracas-Bogotá route, which increased to one daily flight in September after being resumed in February, and expands the country’s air connectivity options with the airline’s main hubs in South America. LATAM’s Director of Corporate Affairs and Sustainability, Juan José Tohá, stated that the company is strengthening Venezuela’s connectivity with its main hubs in the region. The new route enhances air travel options and channels for economic integration in the region, and opens up opportunities for trade, tourism, and business between the two countries.
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BLP INSIGHT
Honduras Approves Regulations for the Beneficial Ownership Transparency Law
The National Banking and Insurance Commission (CNBS) has approved the Regulations to the Transparency and Centralized Beneficial Ownership Registry Law, establishing detailed rules for identifying beneficial owners, documenting ownership and control chains and keeping beneficial ownership information up to date. The Regulations provide that the ownership test includes a 25% or greater interest in the equity or capital of a legal entity or arrangement and establish an electronic filing process, supporting documentation requirements and an annual update deadline of May 30. They also set out the CNBS’ verification powers and sanctions regime. While the Regulations have been approved, the formal filing process will begin once the CNBS issues the administrative act enabling the platform, forms and filing mechanisms. Companies should monitor this next step and prepare to comply with the new beneficial ownership reporting requirements.
REGIONAL ECONOMIC INDEX
Costa Rica
Exchange Rate (local currency per USD)
457.80
Basic Passive Rate (local currency)
3.57%
Monetary Policy Rate
3.00%
Sovereign Debt (S&P / Moody’s / Fitch)
BB / Ba2 / BB
Year-on-Year Inflation
0.34%
El Salvador
Exchange Rate (local currency per USD)
8.75
Basic Passive Rate (local currency)
4.62%
Monetary Policy Rate
N/A
Sovereign Debt (S&P / Moody’s / Fitch)
B- / B3 / B-
Year-on-Year Inflation
3.19%
Guatemala
Exchange Rate (local currency per USD)
7.64
Basic Passive Rate (local currency)
4.62%
Monetary Policy Rate
3.50%
Sovereign Debt (S&P / Moody’s / Fitch)
BB+ / Ba1 / BB+
Year-on-Year Inflation
4.69%
Honduras
Exchange Rate (local currency per USD)
26.88
Basic Passive Rate (local currency)
7.18%
Monetary Policy Rate
6.00%
Sovereign Debt (S&P / Moody’s / Fitch)
BB- / B1 / N/A
Year-on-Year Inflation
6.20%
Nicaragua
Exchange Rate (local currency per USD)
36.62
Basic Passive Rate (local currency)
1.14%
Monetary Policy Rate
5.75%
Sovereign Debt (S&P / Moody’s / Fitch)
B+ / B2 / B
Year-on-Year Inflation
4.00%
Venezuela
Exchange Rate (local currency per USD)
874.73
Basic Passive Rate (local currency)
N/A
Monetary Policy Rate
N/A
Sovereign Debt (S&P / Moody’s / Fitch)
NR / C / NR
Monthly Inflation (September 2026)
8.40%
08/10/2026 | Source: secmca.org | Venezuela: bcv.org.ve
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