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 Moves Toward a Key Milestone in the Construction of the Electric Train
Next month, Costa Rica will begin the bidding process to select the company that will build the intercity electric train system, one of the country’s most ambitious infrastructure projects. The public call for bids will select the construction firm, formalize the contract in 2027, and begin construction thereafter. This system aims to modernize mobility in the Greater Metropolitan Area by offering an efficient public transportation alternative that reduces traffic congestion and air pollution. The project is part of a comprehensive sustainable mobility strategy that the government is promoting alongside other mass transit initiatives in the region. This development represents a decisive step toward a modern transportation infrastructure that will strengthen urban connectivity and foster new investment opportunities in sustainable mobility for Costa Rica.
Costa Rica Opens a New Financing Channel for Innovative Companies
The Development Banking System, with support from the Inter-American Development Bank and the Korea Technology Finance Corporation, developed the Technology Guarantee Program, an initiative to finance MSMEs and startups with potential for technological innovation in Costa Rica. The program incorporates the CTRS technology rating and guarantees backed by the National Development Fund, covering up to 75% of expected losses in credit or venture capital transactions, with backing of up to US$1 million per beneficiary company. Economy Minister María del Milagro Solórzano emphasized that the initiative aims to ensure that talent, knowledge, and technology receive financial backing to transform into real opportunities for growth. Unlike traditional schemes focused on physical collateral, this methodology evaluates companies’ technological capabilities, commercial potential, and growth prospects. The results of this process will be presented at an international seminar in San José, marking a decisive step toward enabling more innovative Costa Rican companies to access financing and strengthen the country’s productive development.
Costa Rica Moves Forward with the Expansion of a Major Highway to Cartago
The Ministry of Public Works and Transportation issued a call for bids to identify construction companies interested in participating in the expansion of the Florencio del Castillo Highway, which leads to Cartago, in a project valued at US$614 million. This private-sector initiative involves construction of one additional lane in each direction along a 16-kilometer stretch, as well as a completely new viaduct between Hacienda Vieja and Las Garantías Sociales. Minister Efraím Zeledón noted that this is the first private-sector concession in Costa Rica in more than a decade, so the government is seeking market input before publishing the request for proposals, which is expected between November and December. The project will be financed through a 25-year concession model, with tolls collected at two toll booths along the route. Once the project is completed, travel time between San José and Cartago will be reduced to half an hour, strengthening road connectivity and fostering new infrastructure investment opportunities for the country.
Costa Rica Maintains Solid Growth Driven by Construction and Services
Costa Rica’s gross domestic product grew 2.5% year-to-year in July 2026, according to the Central Bank of Costa Rica, bringing the year-to-date average growth to 3.6%. Construction emerged as a main driver, growing by 8.3%, fueled by a 7.5% increase in private infrastructure projects and an 11.7% rise in public works, notably apartment buildings, industrial warehouses, and shopping centers. Retail also performed well, growing by 2.7%, while services increased by 3.5%, with a notable acceleration in the hotel and restaurant sectors. The definitive regime received a significant boost from construction, professional services, education, and healthcare, accounting for 60.3% of the total increase in output in July. The Central Bank noted that the slowdown observed in the special regimes is primarily due to temporary factors related to statistical comparisons, with expectations of a recovery during the fourth quarter of 2026, confirming the resilience and diversification of the Costa Rican economy’s growth drivers.
Costa Rica Launches a Regional Strategy to Boost Tourism in the South Pacific
Six cantons in Costa Rica’s South Pacific region presented “La Ruta del Sur”, a regional tourism strategy that seeks to jointly position Aguirre, Osa, Buenos Aires, Golfito, Coto Brus, and Corredores as an integrated destination, capitalizing on the connectivity and complementarity of their natural and cultural attractions. Local governments, tourism chambers, and the private sector support the initiative to strengthen joint promotion of the region to attract more domestic and international visitors, thereby boosting the economic development of communities that rely heavily on tourism. The strategy includes coordinating themed routes, improving tourism infrastructure, and training local entrepreneurs to help diversify offerings and increase the length of time that visitors stay in the area. This inter-canton partnership represents an innovative model for regional tourism development, strengthening investment and employment opportunities in one of the country’s areas with the greatest natural and biodiversity potential.
El Salvador Solidifies Its Position Among Central America’s Fastest-Growing Economies
El Salvador recorded year-over-year economic growth of 5.74% as of June 2026, the region’s second-highest rate, according to a report by the Executive Secretariat of the Central American Monetary Council. Panama led the way with growth of 8.23%, while Honduras moved into third place with 4.96%, and Guatemala recorded growth of 4.24%. In El Salvador, the information and communications sector led growth with 10.8%, reflecting the dynamism of the country’s technology and digital sectors. This performance confirms El Salvador’s solid track record of economic growth, consolidating its position among the most dynamic economies in Central America during the first half of 2026.
El Salvador’s International Reserves Continue Their Strong Growth Trend
El Salvador’s net international reserves reached US$5,142.45 million between January and August 2026, a 14.67% increase compared to the end of 2025, according to the Central Reserve Bank. This cumulative increase of US$657.96 million reflects the sustained strengthening of the country’s external financial position during the first eight months of the year. Of the total recorded, US$4,856.48 million consists of foreign currency reserves, while US$307.54 million is held in gold, the value of which rose by 22.86% compared to December 2025. This trend takes on special significance in the context of the US$1,400 million agreement reached between El Salvador and the International Monetary Fund, which includes measures to strengthen international reserves as part of a growth-friendly fiscal consolidation plan. This solid performance confirms El Salvador’s trajectory of financial strengthening, reinforcing international markets’ confidence in the country’s economic stability.
El Salvador Ranks Above the Regional Average in Digital Services Exports
El Salvador’s exports of digitally delivered services account for more than 2% of GDP, exceeding the regional average of 1.3% in Latin America and the Caribbean, according to a joint report by the Inter-American Development Bank, the World Bank, and the World Trade Organization. The share of digital services in the country’s total service exports rose from 11% in 2005 to 14% in 2024, reflecting a sustained structural transformation. The report stresses El Salvador’s focus on promoting local software companies with export potential by developing infrastructure, talent, and a network of business incubators and accelerators. The country is also one of nine Latin American nations that apply zero tariffs to information technology goods under the Agreement on Information Technology. In addition, the share of foreign visits to Salvadoran e-commerce platforms rose from 9% in 2019 to 21% in 2023, growing the digital ecosystem and technology investment opportunities for the country.
El Salvador Reports Strength in Industrial and Basic Services Activities
El Salvador’s Industrial Production Index grew by 3.2% in July 2026, according to the Central Reserve Bank, reflecting strength in the manufacturing, electric power, and drinking water services sectors. Electricity generation rose 7.5%, driven by increased domestic generation in response to rising energy demand, while photovoltaic generation grew significantly by 35.1%, reflecting the expansion of renewable sources in the country’s energy mix. The water supply and waste management sector also performed well, with 5% growth, driven by ANDA’s projects to expand national coverage and reduce losses, along with a 14.3% increase in billed volume. The manufacturing industry grew by 2.3%, driven by the food and beverage, maquila, and pharmaceutical sectors. This performance confirms the sustained strengthening of industrial activities and essential services in El Salvador, consolidating new investment opportunities in renewable energy and basic services infrastructure.
Intraregional Trade Boosts El Salvador’s Pharmaceutical Sector
Exports of pharmaceutical products from El Salvador to Central America have grown remarkably, with the regional market a key destination for the country’s pharmaceutical industry. The strengthening of this trade relationship reflects Salvadoran companies’ ability to position their products in neighboring markets, taking advantage of the benefits of Central American economic integration. This trend is part of a broader context of sustained growth in El Salvador’s non-traditional exports, where the pharmaceutical sector has gained ground as one of the most promising segments within the manufacturing industry. The consolidation of this industry in regional markets strengthens the diversification of El Salvador’s export portfolio and opens new investment opportunities in pharmaceutical research, production, and distribution within the country.
Guatemala Maintains Its Sovereign Rating and Moves Toward Investment Grade
The rating agency Fitch Ratings confirmed Guatemala’s sovereign rating at “BB+”, one notch below investment grade, and maintained the outlook at “stable”, according to the Ministry of Public Finance. The rating is based on sustained economic growth, favorable fiscal indicators, and the country’s strong external position, supported by current account surpluses that bolster resilience to external shocks. Fitch highlighted the government’s progress on structural reforms, including laws on public-private partnerships and priority infrastructure, advances in competition policy, and recent anti-money laundering legislation. The Ministry of Finance noted that this assessment confirms the country’s steady progress toward investment-grade status, identifying improved governance, lower political risk, and progress on public works as key factors for future upgrades. The Ministry will continue its dialogue with investors and rating agencies to strengthen Guatemala’s credit profile, thereby consolidating international markets’ confidence in the country’s economic trajectory.
Guatemala Begins the Countdown to Turn Its Ports Law into Concrete Results
Guatemala’s new General Ports System Law sets a 90-day deadline for the creation of the National Port Authority, marking the start of a critical phase of institutional transition. This period is intended to establish the operational and administrative foundations of the new autonomous entity that will regulate, plan, and oversee the country’s port system, which handles more than 90% of Guatemalan foreign trade. Successful implementation of the law will depend on the new authority having technical independence and execution capacity from its first months of operation, laying the groundwork to attract private investment and modernize the infrastructure at Puerto Quetzal and Puerto Santo Tomás de Castilla. This institutional transition process represents a key step toward establishing Guatemala as a reliable logistics platform, strengthening the confidence of domestic and international investors in the country’s port sector.
Guatemala Faces the Challenge of Turning Its Public-Private Partnerships into State Policy
Guatemala presented a portfolio of 10 strategic infrastructure projects driven by Public-Private Partnerships (PPPs), covering sectors such as transportation, energy, sanitation, airports, and justice, with at least five reaching the pre-investment phase during the current administration. The central challenge is ensuring that these partnerships transcend individual administrations and become a sustainable state policy, guaranteeing institutional continuity regardless of changes in government. Consolidating this model emphasizes strengthening regulatory frameworks, the technical capacity of the institutions involved, and transparency in project selection and implementation. This effort to institutionalize public-private partnerships seeks to attract long-term private investment in strategic infrastructure, establishing a roadmap that could significantly transform Guatemala’s productive capacity and connectivity in the coming years.
Guatemala and Canada Strengthen Their Trade Relationship Through a New Business Alliance
The Guatemalan-Canadian Chamber of Commerce and the Bank of Central America (BAC) formalized a strategic alliance to facilitate contact between companies interested in exporting, importing, investing, or finding business partners between Guatemala and Canada, as part of the 60th anniversary of diplomatic relations between the two countries. The partnership will focus on three areas: connecting companies with potential partners, providing market information and intelligence, and offering financial and corporate support through BAC. Juan Maldonado, Vice President of Institutional Relations at BAC Guatemala, emphasized that the agreement allows the organization to engage with companies in both countries and support their growth processes. CANCHAM President Luis Alfredo Monzón noted that this collaboration strengthens the Chamber’s ability to support companies seeking to grow and innovate. Canada’s Ambassador to Guatemala, Olivier Jacques, endorsed the initiative, highlighting the private sector’s role in deepening bilateral relations and consolidating new opportunities for business, investment, and economic development between the two countries.
Guatemala Attracts Interest from a Mexican Financial Institution Looking to Expand in the Local Market
Guatemala once again appeared on the radar of Mexican capital during the 2026 Volcano Innovation Summit, held in La Antigua, where Finsus—a Mexican financial institution specializing in digital savings and investments for people not served by traditional banks—generated significant interest among attendees. During the event, the firm’s CEO, Sebastián De Lara, reportedly met with Guatemalan business leaders to discuss operating in the country. However, neither party has officially confirmed these discussions. If this comes to fruition, it would be one of the first times a Mexican financial firm of this type has entered the Guatemalan market through a local partner. The Summit brought together some 2,200 leaders from 35 countries in La Antigua this week, cementing Guatemala’s status as an attractive hub for the exchange of ideas and investment in financial innovation. Such initiatives open up new opportunities for digital financial inclusion and the diversification of banking services in the country.
Honduras Boosts Its Exports with a Solid Performance
Honduras’s exports of goods increased by 2.6% to US$7,918 million between January and July 2026, compared to the same period in 2025, according to the Central Bank of Honduras. Coffee remained a main driver of foreign trade, with sales of US$2,016.5 million, driven by a 17.6% increase in export volume, primarily destined for the United States, Germany, and Belgium. Bananas recorded one of the largest percentage increases, with exports totaling US$286.6 million—a 39.4% rise—while palm oil exports rose 24.7% and gold exports grew 27.9% to US$168.8 million. The United States remained the primary destination for Honduran exports, accounting for 45.7% of the total, followed by Central America with 21.7%. This export performance confirms Honduras’s productive diversification, consolidating coffee, bananas, and gold as fundamental pillars of its economy and reinforcing its position as a reliable trading partner in international markets.
Honduras Consolidates Solid Economic Growth Driven by Services and Agriculture
Economic activity in Honduras posted cumulative growth of 4.4% through July 2026, according to the Central Bank of Honduras, driven primarily by the tertiary sector—particularly financial intermediation, trade, and telecommunications. Financial Intermediation, Insurance, and Pension Funds stood out with a 12.2% increase, contributing 3.9 percentage points to the cumulative growth of the IMAE, bolstered by the strong performance of commercial banks. Trade also performed strongly, with 7.5% growth, driven by increased domestic consumption of food, transportation equipment, and fuels. The agriculture and livestock sector recorded 6.7% growth despite adverse weather conditions, with agricultural production rising 8.1% and fisheries growing 9.5%. The Central Bank highlighted that this expansion continues despite an external environment marked by geopolitical and trade tensions, confirming the resilience and diversification of the Honduran economy’s growth drivers in 2026.
The Honduran Financial System Reports Significant Growth in Savings and Credit
As of September 3, 2026, the Honduran financial system recorded savings of 695,707.4 million lempiras, 12.5% over the amount recorded at the end of 2025, driven by household savings, which rose 16.3%. Savings account deposits increased 21.7%, while corporate deposits also rose by 5.7%, reflecting a gradual recovery in the first months of the year. The outstanding balance of credit to the private sector increased to 715,996.5 million lempiras, a 7.8% year-over-year increase, led by strong growth in credit extended to businesses, which rose 11.6%, far exceeding the same period of 2025. Credit to households also grew by 3.9%. This trend confirms the Honduran financial system’s prosperity, showing an increased capacity for savings and investment that supports economic growth and financing opportunities for the country’s businesses and families.
BLPodcast.
New Episode: Public-Private Partnerships in Costa Rica: Is This the End or a New Beginning? [Spanish audio · English subtitles]
Does the ruling declaring the framework bill on Public-Private Partnerships (ANAPP) unconstitutional mark the end of this model in Costa Rica, or does it open the door to a new phase?
In this episode, we analyze the scope of the ruling, its legal implications, and the impact it could have on infrastructure development, investment, and collaboration between the public and private sectors. We also explore the main challenges and scenarios that could shape the future of PPPs in the country.
A key conversation for understanding what lies ahead for this mechanism and its role in Costa Rica’s development.
📩 For questions or topic suggestions: [email protected].
BLP INSIGHT
Law 10,889 Before the Constitutional Chamber: Implications for Banking and Financial Institutions
BLP, together with the Costa Rican Chamber of Banks and Financial Institutions and the Central American Banking Academy, presents a session analyzing the scope and implications of the new strict liability regime for electronic fraud applicable to banking and financial institutions. The session will address the constitutional challenge filed with the Constitutional Chamber, its suspensive effects and possible precautionary measures, as well as SUGEF’s regulatory response and the legal and procedural criteria applicable to handling claims while the merits of the case are pending. Luis Ortiz, Andrés López and Eduardo Ramírez will speak at this session, aimed at the banking and financial sector.
ECONOMIC INDEX
| Country | Exchange Rate (local currency per USD) | Basic Passive Rate (local currency) | Monetary Policy Rate | Sovereign Debt | Year-on-Year Inflation | ||
|---|---|---|---|---|---|---|---|
| S&P | Moody’s | Fitch | |||||
| Costa Rica | 448.21 | 3.58% | 3.00% | BB | Ba2 | BB | -0.17% |
| El Salvador | 8.75 | 4.79% | N/A | B- | B3 | B- | 3.19% |
| Guatemala | 7.62 | 4.63% | 3.50% | BB+ | Ba1 | BB+ | 3.37% |
| Honduras | 26.88 | 6.70% | 5.75% | BB- | B1 | N/A | 6.20% |
| Nicaragua | 36.62 | 1.14% | 5.75% | B+ | B2 | B | 4.00% |
17/09/2026 | Source: secmca.org
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