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)
454.56
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%
14/10/2026 | Source: secmca.org
Costa Rica Expands Its Pharmaceutical Manufacturing Capacity in Free Trade Zones, Targeting the U.S., Europe and the Middle East
Costa Rica’s pharmaceutical sector added a new plant of more than 44,000 m² under the free trade zone regime in Pavas, San José, developed by a domestically owned company with 60 years of history. The facility incorporates automated processes, robotics and artificial intelligence, and is undergoing validation with the U.S. FDA and the European Medicines Agency (EMA), which will allow exports to the United States, Europe, South America and the Middle East. The project has already created more than 100 new skilled jobs for pharmacists, engineers and operators, and could exceed 200 in later stages. Foreign Trade Minister Indiana Trejos and PROCOMER General Manager Laura López highlighted that the pharmaceutical sector already exports more than US$750 million and that investments of this kind strengthen production linkages and high-value job creation. The case shows how the free trade zone platform not only attracts foreign investment but also helps local companies scale up toward advanced manufacturing in the life sciences.
BLP Perspective: The free trade zone regime remains the preferred route for high-value manufacturing. Life sciences companies considering setting up or expanding operations should review regime eligibility, investment and employment commitments, and plan early for health registrations and international regulatory validation (FDA/EMA), as well as the protection of their intellectual property.
How BLP can help: BLP can support life sciences companies throughout the process of setting up or expanding in Costa Rica: from applying for and negotiating the free trade zone regime with PROCOMER to corporate structuring, health registrations, intellectual property protection and the hiring of specialized staff.
Costa Rica Modernizes Its Customs System with ATENA, Financed by the World Bank
The Ministry of Finance has begun implementing ATENA, the new integrated customs management system that will replace the TICA system and is the second module of Hacienda Digital, following the Tribu-CR tax platform. Training for foreign trade operators and customs auxiliaries starts on October 19, 2026, and the system will be rolled out gradually, with operations expected to begin in the first quarter of 2027. The first phase will cover air and sea exports and national transit. The program is financed by a World Bank loan, adjusted to US$125.64 million, and has been extended to close on June 30, 2027. Deputy Minister of Revenue Víctor Julio Carvajal said the system will simplify procedures, improve the traceability of operations and offer users online tools and a help desk. Customs digitalization aims to reduce time and costs for companies that import and export from Costa Rica.
BLP Perspective: The transition from TICA to ATENA will require importers, exporters, customs brokers and free trade zone companies to update their internal processes, system access and compliance controls. We recommend using the training period to review tariff classification, customs valuation and contractual responsibilities with brokers and logistics providers.
How BLP can help: BLP can help importers, exporters and free trade zone companies prepare for the transition to ATENA through a customs compliance review (tariff classification, valuation and customs regimes), updating contracts with brokers and logistics providers, and advice on procedures and disputes before the National Customs Service.
Costa Rica Attracts International Hotel Investment to Mixed-Use Developments Beyond Traditional Areas
The canton of Grecia, in Alajuela, will receive a new 168-room hotel from an international hotel chain, which will be part of El Canal, a mixed-use development combining a hotel, a shopping center and an event center for 500 people. The shopping center is expected to open in March 2027 and the hotel in 2028. The chain described Costa Rica as a strategic market in Latin America. The project reflects a growing trend in the country: international hotel investment arriving in areas outside traditional beach destinations and downtown San José, linked to mixed-use developments that combine lodging, retail, housing and meetings tourism. This model leverages the growth of mid-sized cities in the greater metropolitan area, their proximity to Juan Santamaría International Airport and demand for business tourism and regional events. The trend opens opportunities for real estate developers, investment funds and local suppliers in regions that until now had limited hotel supply.
BLP Perspective: Mixed-use projects with international brands require careful structuring of hotel franchise and management agreements, condominium regimes, construction permits and, where applicable, tourism incentives. It is a good time for developers and funds to review these structures before committing capital.
How BLP can help: BLP can advise developers, funds and operators on hotel and mixed-use projects: negotiating franchise and management agreements with international chains, real estate and condominium structuring, project financing, construction permits and tourism incentives before the Costa Rican Tourism Board (ICT).
Costa Rica Moves Forward with a Labor Reform Enabling 4×3 Shifts for Continuous Operations
The Legislative Assembly approved in first reading, with 31 votes, a reform to the Labor Code that allows exceptional 12-hour workdays for four days in exchange for three days of rest. The arrangement is aimed at companies with 24-hour production cycles and will be voluntary for workers, without applying to most public and private sector employees. The issue had been under legislative discussion for about 25 years. Its sponsors said the reform seeks to protect jobs and improve the country’s competitiveness to attract investment, particularly in manufacturing and services sectors that operate continuously. Before the second reading, some legislative groups announced they will consult the Constitutional Chamber, so the bill is not yet law and its final wording could change. If finally approved, Costa Rica would have a more flexible working-hours scheme aligned with the needs of the high-value operations already located in the country.
BLP Perspective: If the reform is approved in second reading, companies with continuous operations will need to adjust employment contracts, internal work rules, scheduling policies and records of employee consent. We recommend monitoring the constitutional review and preparing a labor impact analysis now to implement the change in an orderly manner.
How BLP can help: BLP can help companies with continuous operations anticipate the impact of this reform: monitoring its legislative progress and the constitutional review, assessing whether their operations qualify for the 4×3 schedule and, if approved, adapting employment contracts, internal work rules and consent mechanisms to implement it with legal certainty.
Costa Rica Hosts a Wallonia Trade Mission with 13 Life Sciences and Agritech Companies
Belgium’s Wallonia Export and Investment Agency (AWEX) held its first trade mission to the country since 2019 in San José on October 12 and 13, with 13 Belgian companies specializing in radiopharmaceuticals, water treatment, medical waste management, biological agricultural inputs and livestock genetics. The agenda included meetings with potential clients and investors, a roundtable at the Ministry of Health and a visit to the University of Costa Rica’s cyclotron, built with Belgian technology. The mission also presented a European alliance on agricultural bio-solutions such as biocontrol, biostimulants and biofertilizers, bringing together 10 clusters from seven countries. The delegation was accompanied by the Belgian Ambassador, Daniel Bertrand. The visit confirms European interest in Costa Rica as a partner for innovation in health, sustainable agriculture and environmental management.
BLP Perspective: Partnerships with European companies often take the form of distribution agreements, technology licenses or joint ventures. Local partners should anticipate health and agricultural input registrations, intellectual property protection and territorial exclusivity clauses before closing deals.
How BLP can help: BLP can support both European companies seeking to enter the market and their local partners: structuring distribution agreements, technology licenses or joint ventures, health and agricultural input registrations, and the protection of trademarks and patents in Costa Rica and the region.
Costa Rica Boosts Its Coffee in Asia: Exports to Japan Through July Already Exceed All of 2025
Costa Rican coffee exports to Japan reached US$9.4 million between January and July 2026, exceeding the US$9 million recorded for all of 2025, according to PROCOMER data. Between 2022 and 2025, these sales rose from US$6.6 million to US$9 million, an average annual growth rate of 11%. South Korea is also consolidating as a destination, with US$8.6 million exported through July 2026, mainly green coffee. The momentum coincides with the “Producers of Well-being” campaign of the esencial Costa Rica country brand, which uses anime-style animation created by Costa Rican talent and reached more than 7.2 million people and 21.4 million impressions in Japan between May and August; in South Korea, the campaign began on October 1. Country brand director Adriana Acosta explained that prior market studies also identified opportunities for pineapple, bananas and cassava. The results open a diversification path toward high-income Asian markets.
BLP Perspective: Expansion into Asia requires reviewing sanitary and phytosanitary requirements, rules of origin and the protection of trademarks and denominations in destination markets. Agricultural exporters should strengthen their international sales and distribution agreements to capture this growth with legal certainty.
How BLP can help: BLP can support agricultural exporters seeking to grow in Asia by drafting and negotiating international sales and distribution agreements, analyzing rules of origin and market access requirements, and registering and protecting their trademarks in destination countries.
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%
14/10/2026 | Source: secmca.org
El Salvador Announces a US$2.9 Billion Private Investment Program in Natural Gas, Renewable Energy and Water
The Government of El Salvador announced on October 13 an agreement with a Spanish business group to develop a private investment program estimated at US$2.9 billion over three years, which authorities described as the largest in the country’s history, equivalent to about 7% of GDP. According to the announcement, US$1.8 billion would go to natural gas infrastructure, including an LNG regasification terminal and a combined-cycle plant of about 380 MW; US$600 million to water and sanitation; US$300 million to battery energy storage; and US$200 million to two solar plants coordinated with the Lempa River Hydroelectric Executive Commission (CEL), with an initial capacity of about 200 MW expandable to 400 MW. The projects would be financed through project finance with international banks, multilateral lenders and export credit agencies, and the State would participate as a partner in the energy projects. Specific authorizations and contracts for each project are still pending. If carried out, the program would diversify the energy matrix, strengthen security of supply and position El Salvador as a potential regional energy hub.
BLP Perspective: A program of this scale will create opportunities for EPC contractors, equipment suppliers, banks and insurers. Interested parties should anticipate the structure of concessions or contracts with the State, environmental and energy permits, and the security packages typical of project finance, as well as local subcontracting opportunities.
How BLP can help: BLP has experience in energy and infrastructure projects across the region and can advise EPC contractors, suppliers, banks and insurers seeking to participate in this program: project finance and security structuring, construction and supply contracts, environmental and energy permits, and contractual relations with the State.
El Salvador Expands Its Fuel Storage Infrastructure in Acajutla
Energy infrastructure in western El Salvador will receive new private investment of nearly US$90 million over the next five years, announced by one of the main fuel companies operating in the country for 90 years. The core project is the expansion of storage capacity at its Acajutla terminal from 450,000 to 710,000 barrels with two new tanks, which are 70% complete and are expected to begin operating in the first quarter of 2027. The investment also includes about 60 new service stations in industrial and tourism hubs such as the Nejapa corridor, and adds to the US$55 million invested by the same company since 2020, which included a lubricants plant in Acajutla. The decision responds to average fuel demand growth of 3% per year over the last five years. Greater storage capacity strengthens the security of the country’s energy supply, consolidates Acajutla as a logistics and port hub, and supports the expansion of new industrial and tourism zones.
BLP Perspective: The expansion of terminals and station networks involves environmental and hydrocarbon permits, real estate acquisition or leasing, and operating or franchise agreements with third parties. Real estate developers and local operators may find partnership opportunities in the new locations.
How BLP can help: BLP can advise energy companies and real estate developers involved in this expansion on obtaining environmental and hydrocarbon permits, acquiring and leasing properties for new stations, and negotiating operating, supply and franchise agreements.
El Salvador Surpasses 4 Million Air Passengers and Tenders the Expansion of Its International Airport
El Salvador’s San Óscar Arnulfo Romero International Airport handled more than 4 million passengers between January 1 and October 4, 2026, including arrivals, departures and connections, according to the Autonomous Executive Port Commission (CEPA). In early October, CEPA launched an international public tender for the design and construction of the passenger terminal expansion, with a deadline for submitting documents of November 19, 2026. The expansion follows the arrivals terminal opened in June, with an investment of more than US$50 million, over 24,000 m² of construction, capacity for 4,500 people and the ability to process 16,500 bags per hour, with a maximum disembarkation time of 30 minutes. The growth in air traffic reflects the dynamism of tourism and business travel to the country, and the new tender represents a concrete opportunity for international design, engineering and construction firms interested in airport infrastructure.
BLP Perspective: With a November 19 deadline, interested firms should promptly review the tender documents, prequalification requirements, required bonds and the advisability of bidding in a consortium with local partners. An early legal review of the contract terms reduces risks at award and execution.
How BLP can help: BLP can support design, engineering and construction firms interested in this tender, which closes on November 19: reviewing the tender documents and prequalification requirements, structuring consortia with local partners, preparing bonds, and support during the award and contract negotiation with CEPA.
El Salvador Reaches 30% Progress on the Pacific Airport Terminal, with a First Phase of US$386.4 Million
Construction of the Beta terminal of the Pacific International Airport, located in El Ciprés, Conchagua, in the department of La Unión, is 30% complete, according to CEPA. The Legislative Assembly approved US$17.18 million for the terminal’s enveloping dome, a 21-meter-high structure. The project’s first phase represents an investment of US$386.4 million and includes a 2,400-meter runway, a 12,000 m² apron and a digital control tower. In this stage, the airport will be able to serve 365,000 passengers per year, with a projection of up to 5 million in its third phase. The works generate more than 3,600 direct and indirect jobs. The project seeks to boost development in the eastern region of the country, complementing port and tourism activity in La Unión and opening new investment opportunities in tourism, logistics and real estate development in the region.
BLP Perspective: New air connectivity in the east may increase the value of land and tourism and logistics projects in La Unión. Investors should conduct title and environmental due diligence on properties and evaluate available tourism and special zone incentives before acquiring or developing projects in the area.
How BLP can help: BLP can help investors and developers evaluating tourism, logistics or real estate projects in eastern El Salvador with title and environmental due diligence on land, analysis of tourism and special zone incentives, and structuring of acquisitions and financing.
The IMF Maintains Its 4.5% Growth Projection for El Salvador in 2026
The International Monetary Fund kept its 2026 growth projection for El Salvador at 4.5%, according to its World Economic Outlook released on October 12 during its Annual Meetings, following estimated growth of 3.9% in 2025, and forecasts 4% expansion for 2027. With this result, the country would rank as Central America’s second-fastest-growing economy in 2026, behind only Panama (5%), and above the regional average of 4.2%. The IMF also projects inflation of 2.7% in 2026 and 2.1% in 2027, which would give El Salvador the second-lowest inflation rate in the region, as well as an unemployment rate of 4.3% in 2026. The Central Reserve Bank, for its part, estimates growth of between 4.5% and 5% this year. The forecasts reinforce the perception of macroeconomic stability and a favorable environment for private investment, which has been the main driver of recent expansion.
BLP Perspective: An environment of sustained growth and low inflation supports medium-term investment planning and access to financing. It is a good time for investors and expanding companies to review their corporate, tax and financing structures in the country.
How BLP can help: BLP can support investors evaluating entry into El Salvador and companies planning to grow in the country with the corporate and tax structuring of their investment, analysis of available incentives, and negotiation of financing with local and international banks.
El Salvador Connects More Than 70 Exporters with International Buyers at Its First TradeExpo
El Salvador held the first edition of El Salvador TradeExpo 2026 on October 12 and 13, organized by Invest El Salvador and the Chamber of Commerce and Industry of El Salvador (Camarasal), with more than 70 Salvadoran companies and international buyers from North America, Central America, the Caribbean and South America. The fair was organized into five pavilions: food and consumer goods, packaging, manufacturing and technology, chemical-pharmaceutical and services, and included business matchmaking sessions with buyers. Institutions such as the General Directorate of Customs, CENTA and CONAMYPE also took part, providing guidance to exhibitors. Camarasal President Leticia Escobar and representatives of Invest El Salvador highlighted the event as a platform to expand the country’s export offering and open new markets for local companies, including small and medium-sized enterprises. The initiative adds to trade promotion efforts aimed at diversifying destinations and leveraging existing trade agreements.
BLP Perspective: Deals arising from these matchmaking sessions should be formalized through international sales, distribution or supply agreements that define Incoterms, governing law and dispute resolution. Exporters should also verify compliance with rules of origin to benefit from tariff preferences under existing trade agreements.
How BLP can help: BLP can help exporters turn the contacts made at these matchmaking sessions into solid agreements: drafting international sales, distribution and supply contracts, analyzing rules of origin to benefit from existing trade agreements, and protecting trademarks in destination markets.
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%
14/10/2026 | Source: secmca.org
Guatemala Opens the U.S. Market to Its Chrysanthemums After More Than 50 Years of Restrictions
Starting November 9, 2026, Guatemala will be able to export chrysanthemums to the United States, after the U.S. Department of Agriculture’s Animal and Plant Health Inspection Service (APHIS) lifted restrictions related to white rust. The opening covers fresh cut flowers as well as cuttings and in vitro plantlets of several species, subject to phytosanitary measures whose requirements will be published in the USDA’s ACIR database. According to the Guatemalan Exporters Association (Agexport), the United States imports about US$400 million in chrysanthemums a year, and Guatemala could reach exports of about US$20 million annually by the third year and about US$40 million by the sixth. Gonzalo Salguero, Vice President of Agexport’s Ornamental Plants, Foliage and Flowers Commission, highlighted Guatemala’s proximity advantage over competitors such as Colombia and Ecuador. The opening is the result of more than five years of work by the Ministry of Agriculture and the Ministry of Foreign Affairs, and Agexport is seeking market access for another 12 to 15 lines of plants and flowers, strengthening the country’s agricultural export diversification.
BLP Perspective: Growers and exporters should prepare to meet APHIS phytosanitary requirements and structure sales and distribution agreements with U.S. buyers. It is also time to evaluate partnerships, financing and plant variety protection to scale up production.
How BLP can help: BLP can support growers and exporters seeking to take advantage of this opening by structuring sales and distribution agreements with U.S. buyers, reviewing export regulatory requirements, protecting plant varieties, and structuring partnerships or financing to scale up production.
Guatemala Boosts Its Free Zones and Special Economic Development Zones with New Manufacturing Investment
Guatemala’s free zone and Public Special Economic Development Zone (ZDEEP) regimes continue to attract manufacturing investment. In Escuintla, on the route to the Pacific, a new ZDEEP was inaugurated in an industrial park with an investment of more than US$13 million that is already operating. At the same event, it was reported that a Japanese auto parts multinational, which has operated since 2023 in the Puerta del Istmo free zone in Ayutla with 800 to 1,000 employees, is moving forward with plans for a second plant in Pajapita, San Marcos, which could create about 4,000 jobs; when it was announced in 2025, an investment of US$250 million was mentioned, a figure the Ministry of Economy considers preliminary. Cristian Mayorga, Chairman of the Board of the Santo Tomás de Castilla Free Industry and Trade Zone (Zolic), highlighted the growth of these regimes, while Intecap is supporting workforce training. The expansion into border departments such as San Marcos shows the potential of these regimes to bring formal employment and investment to regions outside the capital.
BLP Perspective: ZDEEPs and free zones offer significant tax benefits but require meeting qualification, investment and employment conditions. Investors and industrial park developers should review the applicable regime, land acquisition, environmental permits and large-scale workforce planning.
How BLP can help: BLP can advise manufacturers and investors evaluating a presence in Guatemala on qualifying under the free zone and ZDEEP regimes, acquiring or leasing land and industrial buildings, environmental permits and workforce planning for large-scale operations.
Guatemala Will Have More Air Connectivity in 2027: International Airlines Plan to Increase Seats by Up to 127%
Air seat capacity to Guatemala will grow in 2027 compared with 2026, according to the Guatemalan Tourism Institute (Inguat), with increases ranging from 24% to 127% among airlines from Mexico, the United States and Canada, although routes and frequencies have not yet been detailed. Erick Uribio, administrator of La Aurora International Airport, said commercial flights grew 4.5% in 2025 and projected a 5.5% increase for 2026. The General Directorate of Civil Aviation estimates growth for 2026 of 5.64% in commercial flights, 6.27% in private flights and 6.86% in cargo flights, and new time slots have been enabled for cargo operations. The increase in air capacity supports the goal of attracting more visitors, after the country received 3.3 million tourists in 2025, and expands logistics options for perishable exports. Greater connectivity opens opportunities for investment in hotels, tourism services and air logistics.
BLP Perspective: Growing air traffic favors hotel, tourism real estate and cargo logistics projects. Investors should evaluate tourism incentives, hotel franchise and management agreements, and the airport and customs authorizations required for cargo operations.
How BLP can help: BLP can support investors in hospitality, tourism and air logistics with project structuring, negotiation of hotel franchise and management agreements, analysis of tourism incentives, and obtaining airport and customs authorizations for cargo operations.
Guatemalan Manufacturing Scales Up Its Export Capacity with International Strategic Capital
Guatemala’s manufacturing industry shows how local companies are scaling up to compete in demanding markets. A Guatemalan manufacturer of commercial refrigeration equipment is completing the relocation of its operations this year to a new 70,000 m² plant in Villa Canales, with six production lines, an expected 50% increase in output and a reported investment of about US$50 million, with the United States as its main market. The company, which operates in eight countries and employs about 1,800 people, brought in a Japanese industrial group listed on the Tokyo Stock Exchange as a partner in 2024, an example of how foreign strategic capital is entering Guatemalan companies to accelerate their international growth. These transactions combine local experience and production capacity with access to technology, markets and financing from global investors. The trend reinforces Guatemala’s role as an export manufacturing platform and opens room for new partnerships, mergers and acquisitions in the industrial sector.
BLP Perspective: The entry of strategic investors into local companies requires careful preparation: due diligence, shareholders’ agreements, corporate governance and, where applicable, merger control filings. Expanding companies should also review their regulatory and customs compliance for exports to the U.S.
How BLP can help: BLP can advise local companies seeking to grow with foreign strategic capital: preparing for due diligence processes, negotiating investment and shareholders’ agreements, corporate governance and merger control filings, as well as regulatory compliance for exports to the U.S.
Exchange Rate (local currency per USD)
26.89
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
6.28%
14/10/2026 | Source: secmca.org
Confidence in Honduras’ Economy Reaches Its Highest Level in Four Years
The economic activity confidence index from the Central Bank of Honduras (BCH) Survey of Macroeconomic Analysts’ Expectations reached 56.7 points in September 2026, its highest level for that month in four years, and has remained above the 50-point expansion threshold for nine consecutive months. Analysts project GDP growth of 3.6% in 2026 and 3.7% in 2027, with quarterly growth of 1.5% in the third quarter and 1.6% in the fourth. Factors supporting expectations include the agreements with the International Monetary Fund, remittance flows, export performance, domestic demand and the level of international reserves. Analysts expect inflation of 5% at the end of 2026, at the upper limit of the BCH target range, and 4.82% in 2027, and cite international conflicts and fuel prices as risks. The rebound in confidence reinforces the perception of stability for those evaluating investments in Honduras.
BLP Perspective: A more confident environment is favorable for reactivating expansion and financing projects. We recommend companies review their financing structures and long-term contracts, including adjustment clauses for changes in inflation and exchange rates.
How BLP can help: BLP can support companies taking advantage of this environment to reactivate projects in Honduras: structuring investments and financing, reviewing long-term contracts with inflation and exchange rate adjustment clauses, and sector-specific regulatory advice.
Honduras Presents the Foundations of Its Industrial Policy with European Union Support
Honduras’ Ministry of Economic Development (SDE) presented the Base Document of the Industrial Policy, developed with the participation of 671 people and 323 institutions and companies, and structured around five pillars: greater value added, productive diversification, productive financing, production linkages and the transformation of the energy matrix. Manufacturing accounts for about 17% of Honduras’ GDP. The European Union will contribute an additional L6,615,000 for a second phase, which will include the final design of the policy, its action plan and a monitoring system. The process has a Governance Committee made up of the SDE, the European Union, UNIDO, the National Association of Industrialists (ANDI) and the Honduran Council of Private Enterprise (Cohep), with ECLAC and academia as partners. The event was attended by Minister of Economic Development Eddy Ordóñez and EU Chargé d’Affaires a.i. Martti Lutsar. The initiative seeks to provide a long-term roadmap to raise productivity and attract industrial investment.
BLP Perspective: The industrial policy could lead to new incentives, financing programs and regulatory reforms. This is the time for business associations and companies to participate in the design phase and analyze how future instruments could apply to their investment and supply chain projects.
How BLP can help: BLP can help companies and industry associations participate in the design phase of this policy and identify how future incentives, financing programs and regulatory reforms could apply to their investment projects in Honduras.
Honduras Obtains a Favorable ICSID Award in a US$460 Million Claim
A tribunal of the International Centre for Settlement of Investment Disputes (ICSID) issued an award favorable to Honduras on September 30 in case ARB/23/3, brought by JLL Capital, which claimed US$460 million over the situation of its subsidiary CA Capital, alleging expropriation and denial of justice under the Mexico-Central America Free Trade Agreement. By majority, the tribunal declined jurisdiction, concluding that the disputed measures related to financial services, a matter excluded from that treaty’s investment chapter, and also rejected the alternative route based on the treaty between Mexico and the Northern Triangle. The State was represented by the Office of the Attorney General. The decision spares the country a significant contingency and provides predictability regarding the scope of existing investment treaties, something foreign investors value when structuring their presence in Honduras.
BLP Perspective: The case shows that not all investments enjoy the same protection: sector exclusions, such as financial services, can leave a claim outside a treaty’s scope. We recommend foreign investors review from the structuring stage which treaty and chapter protect their investment, and plan their nationality structure and dispute resolution mechanisms.
How BLP can help: BLP can advise foreign investors from the structuring stage to identify which treaties protect their investment and to what extent, plan the most suitable corporate structure and design dispute resolution mechanisms.
Honduras Generates L769 Million in Tourism with 1.6 Million Trips During Morazán Week
Honduras’ Ministry of Tourism recorded 1.6 million trips between October 2 and 11, 2026, during the Morazán Week holiday, 4% more than in 2021, the last year with a comparable measurement. The Honduran Tourism Institute estimates an economic impact of L769 million, 20.8% more than the L637 million recorded in 2021. Six out of ten travelers stayed overnight at their destination, benefiting hotels, restaurants and transportation services in destinations such as Tela, La Ceiba, Copán Ruinas, Omoa, La Esperanza, Roatán, Comayagua, Choluteca and Gracias. Tourism Minister Andrés Ehrler highlighted the dynamism of domestic tourism and its impact on local economies. The results confirm the ability of Honduras’ tourism sector to generate income and employment in different regions of the country, and open room for new investments in hotel infrastructure and services in both beach and cultural destinations.
BLP Perspective: The dynamism of domestic tourism favors hotel and service investments in regional destinations. Developers should evaluate the benefits of the Tourism Incentives Law, conduct due diligence on properties, especially in coastal and island areas, and secure municipal and environmental permits.
How BLP can help: BLP can support tourism developers and investors in Honduras with applications for benefits under the Tourism Incentives Law, due diligence on properties in coastal and island areas, and municipal and environmental permitting for new projects.
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%
14/10/2026 | Source: secmca.org
Nicaragua Reaffirms Growth Projection of 3.5% to 4.5% and an External Surplus of 7% to 8% of GDP for 2026
The Central Bank of Nicaragua (BCN) published its 2026 Macroeconomic Outlook, with information through the third quarter, maintaining its GDP growth projection of between 3.5% and 4.5% for this year, in line with the estimate in its July Monetary and Exchange Rate Policy Report. According to the BCN, the economy continues to expand, with average unemployment projected at between 3% and 3.5% and a current account surplus equivalent to between 7% and 8% of GDP, unchanged from the previous estimate. The bank revised its inflation forecast upward to a range of 3.5% to 4.5%, due to international prices and the effects of El Niño on agricultural production, and identified geopolitical conflicts, oil prices and uncertainty in international trade policy as risks. The figures reflect an economy that maintains its growth pace and a solid external position.
BLP Perspective: Stable projections support planning for companies already operating in Nicaragua. Before new investments or transactions, we recommend assessing compliance with applicable international sanctions (e.g., OFAC and EU), as well as foreign exchange, customs and sector-specific regulatory requirements.
How BLP can help: BLP can support companies operating or considering operations in Nicaragua with prior international sanctions compliance analysis (OFAC, EU), counterparty due diligence and advice on foreign exchange, customs and sector-specific regulatory matters.
Nicaragua Moves More Than 154,000 Tons of International Cargo in One Week
Nicaragua’s commercial ports handled 154,545 metric tons of import and export cargo between October 5 and 11, 2026, up from about 139,000 tons reported the previous week, according to Carlos Aburto, General Manager of the National Port Company (EPN). Puerto Sandino led with 78,029 tons, including imports of 53,404 tons of crude oil, 6,153 tons of clinker and 855 tons of bagged cement, as well as exports of 17,617 tons of oil residue. Puerto Corinto moved 76,150 tons and served 10 vessels, five container ships and five tankers, importing 1,285 containers carrying glass, steel profiles, aluminum and potassium sulfate, among other products. Port activity reflects the dynamism of the country’s foreign trade, construction and energy sectors.
BLP Perspective: For importers, exporters and logistics operators, port volumes confirm the supply chain is operating. We recommend reviewing transportation and warehousing contracts and customs compliance and, before dealing with local counterparties, assessing exposure to applicable international sanctions.
How BLP can help: BLP can advise importers, exporters and logistics operators on reviewing transportation and warehousing contracts, customs compliance and the screening of local counterparties against applicable international sanctions.
Exchange Rate (local currency per USD)
877.90
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%
14/10/2026 | Source: bcv.org.ve
Venezuela Restores Its Direct Air Link with Italy Starting March 2027
Venezuela and Italy will once again be connected by direct flights starting March 30, 2027, when the Caracas-Rome route operated by Italy’s flag carrier begins, following the signing of an air connectivity memorandum of understanding at the Venezuelan Embassy in Rome. The service will start with three weekly frequencies, aiming to reach one daily flight, and will offer more than 90,000 seats in its initial phase. Deputy Foreign Minister Oliver Blanco highlighted the boost the route will give to trade, tourism and mobility between the two countries. A direct connection between Venezuela and Italy had not operated for about a decade, and its return adds to the reactivation of other international routes to Caracas in 2026. The new connectivity facilitates business travel, strengthens ties with one of the largest communities of European origin in Venezuela and opens opportunities for trade, tourism and cargo between Europe and the country.
BLP Perspective: Greater connectivity makes it easier to evaluate opportunities in the country. However, any commercial operation or investment related to Venezuela should be preceded by a compliance analysis of applicable international sanctions (OFAC, EU), especially regarding payments or contracts with state entities.
How BLP can help: BLP can help companies interested in Venezuela evaluate opportunities safely, through international sanctions compliance analysis (OFAC, EU), counterparty due diligence and structuring of payments and contracts, especially when state entities are involved.
The IMF Raises Its Projections for Venezuela: Growth of 5% in 2026 and 7% in 2027
The International Monetary Fund raised its GDP growth projection for Venezuela to 5% for 2026, from a previous 4%, and to 7% for 2027, from 6%, according to its October World Economic Outlook. The IMF also estimates that the Venezuelan economy grew 9% in 2025, while the Central Bank of Venezuela reports 8.7%. These figures contrast with the 2.3% growth expected for Latin America and the Caribbean in 2026. Luis Vicente León, president of the firm Datanálisis, projected growth of 7% in 2026 and close to 10% in 2027, driven by oil contracts, production and export licenses and the new Hydrocarbons Law, although he identified the electricity sector as the main challenge to sustaining the expansion. Venezuela resumed relations with the IMF in April 2026. The improved projections reflect an ongoing economic recovery that is drawing investor interest in sectors such as hydrocarbons, mining, banking and consumer goods.
BLP Perspective: The recovery opens opportunities but requires careful structuring: counterparty due diligence, review of applicable OFAC general and specific licenses, analysis of the new hydrocarbons framework, and investment protection and dispute resolution mechanisms.
How BLP can help: BLP can support investors evaluating Venezuela’s recovery by reviewing applicable OFAC general and specific licenses, conducting counterparty due diligence, analyzing the new hydrocarbons framework, and designing structures with investment protection and dispute resolution mechanisms.
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BLP NEWS
BLP Advises Indra Group on the Bidding Process for Overseas Voting in El Salvador’s 2027 Elections
BLP advised Indra Group during the bidding process that culminated in El Salvador’s Supreme Electoral Tribunal awarding a contract of approximately US$30.8 million to INDRA Soluciones Tecnologías de la Información, S.L.U. The contract covers the implementation of the technological and operational infrastructure needed for Salvadorans living abroad to vote in the 2027 presidential and legislative elections, through two methods: remote internet voting and in-person electronic voting. BLP’s advice focused on the bidding process and the contract award, and was led by partner Mariana Nochez and director Delmer Rodríguez of the El Salvador office.
EVENTS
ILO Convention 190: The New Standard for Preventing Workplace Violence and Harassment
ILO Convention 190 is now in force in Costa Rica, introducing new obligations for employers to prevent workplace violence and harassment. In this free webinar, Carla Sánchez, Director, and Roy Murillo, Associate, will explain what the Convention means for companies and what they should review to comply with its requirements. Topics will include prevention, the role of leaders, psychosocial risk management, reporting and investigation procedures and how to handle situations involving third parties.
The webinar will take place on Thursday, October 29, from 10:00 to 11:00 am Costa Rica time, online. The webinar will be held in Spanish.
REGIONAL ECONOMIC INDEX
Costa Rica
Exchange Rate (local currency per USD)
454.56
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)
26.89
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
6.28%
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)
877.90
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%
14/10/2026 | Source: secmca.org | Venezuela: bcv.org.ve
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