Central America Briefing
The Caribbean Council's Exclusive Publication on Central America

Covering Guatemala to Panama, Central America Briefing provides our subscribers and members with a fortnightly spotlight on the key business opportunities and political developments affecting foreign investors with business operations or capital investments in the region.

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Leading Articles Featured in Central America Briefing  

23 January 2026

Following disturbances in three prisons linked to changes in privileges, gangs attacked police officers in and around the capital Guatemala City. This resulted in 10 police deaths and caused President Bernardo Arévalo to ask for a State of Siege which restricts some constitutional guarantees for a month. This was passed by Congress the following day. Tension remains high in the prison system with gang leaders reportedly upset at being transferred, losing king size beds, internet and restaurant food.

Source: Central America Briefing | Vol 14, Issue 2

9 January 2026


With two weeks to go before the handover of power in Honduras, following a disputed and close election, Nasry Asfura continued to pick his cabinet. This was before the president-elect departed for his first official trip to the US and Israel. One name being touted for the foreign ministry is Mireya Agüero de Corrales who previously held the position from 2013-2014. According to officials most of the cabinet will be new faces and Asfura has already decided on its makeup. Meanwhile, Honduras’s Congress is attempting to convene a hearing to determine whether to accept the election result or demand a total recount.

Source: Central America Briefing | Vol 14, Issue 1

Photo Credit: https://www.facebook.com/papialaorden/

24 December 2025


The Eastern Caribbean political map shifted dramatically as one of the world’s longest-serving democratic leaders was voted out in St Vincent and the Grenadines, while Prime Minister Phillip Pierre tightened its grip on power in neighbouring St Lucia.

In Kingstown, Godwin Friday of the New Democratic Party (NDP) was sworn in as the country’s fifth Prime minister, ending Ralph Gonsalves’ near quarter-century at the helm.

Friday’s moderate conservative NDP won 14 of the 15 constituencies in the 27 November election, sweeping aside the Unity Labour Party (ULP), which had governed since 2001.

“The people have come out and said…We want a better future for ourselves,” Friday told hundreds of jubilant supporters. “I know that there are a lot of challenges ahead,” he said, acknowledging that governing would not be easy, but pledged to be a leader for all Vincentians.

St Vincent and the Grenadines remains heavily dependent on tourism and is still grappling with the lingering effects of the April 2021 La Soufrière eruption, and Hurricane Beryl in 2024.

Friday has promised to create more jobs, raise wages, improve security and invest in infrastructure, while his party has previously championed a citizenship by investment programme.

Gonsalves, who first became Prime Minister in March 2001, was re-elected to Parliament for an eighth successive time in North Central Windward as his parties sole winning candidate. He has vowed that the ULP will regroup in opposition. “Labour is very much alive. We shall rendezvous with the electorate formally again in 2030 or before, as the circumstances demand or admit,” said Gonsalves, declaring that the party is far from finished.

Friday has moved quickly to install a 17-member Cabinet, with himself also serving as Minister of Finance, Legal Affairs and Justice, Economic Planning, and Private Sector Development. Key portfolios include St Clair Leacock as Deputy Prime Minister and Minister of National Security and Immigration, Daniel Cummings at Health and Wellness and Energy, Nigel Stephenson at Transport, Infrastructure and Physical Planning, and Kishore Shallow as Minister of Tourism and Maritime Affairs.

While the labour party faltered in St Vincent, it surged in St Lucia, where Prime Minister Philip Pierre secured a second consecutive term with another landslide for the St Lucia Labour Party (SLP).

Results of the 1 December election, showed the SLP winning 14 of the 17 parliamentary seats, while two independent candidates aligned with the government, Stephenson King and Richard Frederick, also held their seats. The opposition United Workers Party (UWP) was reduced to a single seat, that of former Prime Minister Allen Chastanet.

“First of all, I would like to thank the people of St Lucia for conducting what was a very decent election, an election free from violence, and this is testimony to the maturity of our people and the maturity of our democracy,” said Pierre, hailing both the conduct and the meaning of the vote. He is the first Prime Minister in over a decade to win back to back elections in St Lucia.

Pierre was sworn in for a second straight term, telling St Lucians that he would “march forward with purpose, discipline, and confidence as we strive to make our island the best place to live and work.”

Highlighting his social agenda, he pledged to “address the basic needs of the vulnerable and differently able so that everyone can have a dignified existence,” and called for “zero tolerance towards all forms of deviant behaviour that is likely to destroy our society.”

Regional policitcal analsis Peter Wickham described the result as “an unparalleled success” noting that positive second-term swings are rare but signal that “people have reposed confidence in the government after one term.” At the same time, he contrasted St Lucia’s outcome with the fall of Gonsalves in St Vincent, underscoring that electoral currents in the Caribbean cannot be applied mechanically from one state to another.

In the wake of the defeat, Chastanet offered to step down as UWP leader after his second consecutive general election loss. However, as was the case following his resignation in 2021, the National Council of the party has again rejected Chastanet’s offer. Instead, he has been asked to remain at the helm of the UWP until at least the party’s next convention.

Taken together, the twin results mark a striking divergence in the fortunes of long-standing leaders and Labour parties in the Eastern Caribbean. Gonsalves exits office after 25 years, promising to rebuild in opposition, while Pierre consolidates his grip on power, buoyed by a renewed mandate to pursue his vision for St Lucia.

Source: Central America Briefing | Vol 13, Issue 24

Photo Reference: https://www.facebook.com/comraderalph?locale=en_GB

21 November 2025


Over the next five years, the Development Bank of Latin America and the Caribbean (CAF) has announced a US$40bn investment in sustainable growth and promotion of climate action. This includes energy transition, water security, sustainable mobility, agricultural prosperity and conserving key ecosystems on the planet from the Amazon to mangroves. To achieve this CAF will use a variety of financial tools from project financing, promoting sustainable public policies, green credit lines, debt-for-nature swaps and sustainability loans. As well as working with local governments to ensure financing gets to the people that need it. The announcement was made at the CELAC-EU Summit in Santa Marta and ties in with COP 30 and the EU Global Gateway initiative.

Source: Central America Briefing | Vol 13, Issue 21

7 November 2025


BAC International Corp. (BIC) has revealed plans to purchase Multibank in Panama, a move that would make it the largest bank in Central America by market share. The purchase is subject to approval by the respective banks’ directors, shareholders and regulatory authorities. It would give BAC US$43bn in assets, US$30bn in loan portfolio and US$32bn in deposits and place them in the top three banks in Panama. BAC has over six million customers across Central America and is perhaps best known for its commitment to sustainability.

Source: Central America Briefing | Vol 13, Issue 20

10 October 2025


World Bank forecasts for 2025 predict that Guatemala and Panama will lead Central American growth in 2025 with 3.9% GDP each. Costa Rica will be third with 3.6%, Honduras 3.5%, Nicaragua 3.1% and El Salvador with 2.5%. Countries that are included in the report due to them being part of the Central American Integration System (SICA) are the Dominican Republic which has had years of double digit growth dropping to 3% and Belize improving its GDP by 1.5%. The Dominican Republic is expected to bounce back in 2026 and 2027 to lead the region with Panama not far behind (4.3% and 4.1% respectively). Overall for the region the World Bank estimates regional economic growth as 2.3% in 2025 and 2.5% in 2026. The World Bank chief economist for the region, William Maloney expects a slight improvement in Latin America but against a more challenging global economic backdrop.

Source: Central America Briefing | Vol 13, Issue 18

26 September 2025

Florida Ice and Farm Company (FIFCO) agreed a US$3.25bn deal with Heineken to sell the remaining 75% of its stake in Distribuidora La Florida SA. This will include food and beverage operations in Costa Rica and Guatemala, a beverage business in Mexico and stakes in beer companies in Nicaragua and Panama. FIFCO México SA, Nicaraguan Brewing Holding (NBH) SA,  Inversiones Cerveceras Centroamericanas SA (INCECA) Compañía Cervecera de Nicaragua and Cervecería Panamá SA are the beverage businesses at stake. It also includes the Musmanni bakery franchise and MUSI convenience store chain. The Dutch giants have held a 25% stake in FIFCO since 2002. 

Source: Central America Briefing | Vol 13, Issue 17

12 September 2025


El Salvador Vice President Félix Ulloa believes it is not the best time to talk about regional integration given that a new Sistema para la Integración Centroamericana (SICA) general secretary has not been agreed upon. Nicaraguan lawyer Werner Vargas resigned in November 2023, having been elected for the 2022-2026 period. Since then, countries have been unable to agree upon a successor. Ulloa also criticised Parlacen, the Central American Parliament which El Salvador recently announced it would withdraw from. Nicaragua also withdrew from the Central American Court of Justice. El Salvador proposed plans to make Parlacen part of a European Union integration.

Source: Central America Briefing | Vol 13, Issue 16

01 August 2025


Central America attracted US$3.12b in Foreign Direct Investment in the first quarter of 2025, a 2.8% increase year-on-year. The biggest winner was El Salvador with US$322m in investment, 65% more than in 2024. Conversely, Panama suffered the greatest loss with US$526m, 51% less than the previous year. With US$921 in FDI, Costa Rica received the most but this was still a 25% drop compared to 2024. According to the Costa Rica Central Bank, 70% of FDI came from the US with medical devices remaining the most important sector. Free trade zones, perhaps suffering due to stalled infrastructure improvements, saw the biggest declines in FDI. Across the region, financial intermediation, manufacturing and trade were areas of biggest increases. Arguments that some countries need to diversify and strengthen regulatory frameworks are backed up by Guatemala’s attempt to pass anti-money laundering legislation. FDI in Latin America and the Caribbean reached US$188.96 billion in 2024, a 7.1% increase over the previous year according to an Economic Commission for Latin America and the Caribbean (ECLAC) report.

Source: Central America Briefing | Vol 13, Issue 15