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.

Central America Briefing Subscribers receive 22 editions over 12 months featuring the latest reports, business news and insightful analysis.

Don’t miss out on this exclusive briefing from the region. Subscribe to receive the Central America Briefing Publication directly to your inbox. Click to Subscribe.

Leading Articles Featured in Central America Briefing  

17 April 2026

The European Union and Honduras’s National Electric Energy Company (ENEE) have signed an agreement to modernise the country’s ageing power grid. As part of a broader €1 bn regional investment, the European Investment Bank (EIB) will provide Honduras with a €200 million loan. This funding prioritises the construction and renovation of seven critical transmission lines, selected from twenty-one identified as high-priority. These upgrades are essential to address a 50-year-old infrastructure that has exceeded its lifespan, including the vital Nicaragua interconnection.

Energy Minister Eduardo Oviedo emphasised that ENEE faces US$6.5 bn in investment pressures over the next decade, necessitating private sector involvement. Currently, private firms generate two-thirds of the nation’s electricity. By combining technical assistance with high-tech industrial offers, the EU aims to improve grid reliability and reduce technical losses. This strategic international cooperation represents a vital step toward securing long-term energy sustainability while meeting the country’s rising annual demand.

Source: Central America Briefing | Vol 14, Issue 8

2 April 2026

The US Federal Maritime Commission (FMC) has reported an unprecedented surge in the detention of Panama-flagged vessels at Chinese ports, with nearly 70 ships held since early March 2026. This aggressive spike in inspections is viewed as a retaliatory move by Beijing following a Panamanian Supreme Court ruling that invalidated port concessions held by the Hong Kong-based conglomerate CK Hutchison.

Following the removal of the Chinese-linked operator, Panama appointed US-affiliated subsidiaries of Maersk and MSC as interim managers, a shift influenced by Washington’s efforts to curb Chinese control over the Panama Canal. FMC Commissioner Laura DiBella suggested these detentions are intended to punish Panama for the asset transfer. Given that Panama-flagged ships carry a significant portion of global trade, the FMC is now investigating whether China’s actions constitute an unfair disruption to international commerce and the strategic waterway that handles 5% of global maritime traffic.

Source: Central America Briefing | Vol 14, Issue 7

23 March 2026

In 2026, Central American economies will show moderate growth, according to the latest IDB forecast. Despite this resilience, the subregion faces fiscal challenges. Panama recently improved its fiscal position through strong income growth, while Guatemala experienced a deterioration driven by higher expenditures but still managed to increase tax revenue by 9.1%. A critical stabilizer for Central America is the steady inflow of remittances. To sustain long-term growth, the region must address low productivity and the need for digital skill development. The IDB plans to invest a record US$500 bn in Latin America and the Caribbean over the next ten years as it recognizes the advances in the reduction of poverty and the decrease in regional risk.

Source: Central America Briefing | Vol 14, Issue 6

6 March 2026

AES has entered into a definitive agreement to be acquired and taken private by a consortium led by BlackRock’s Global Infrastructure Partners (GIP) and EQT Infrastructure, in a transaction valued at US$10.7 billion in equity ($15 per share) and an enterprise value of approximately US$33.4 billion. The acquisition is designed to provide AES with the capital required to expand its clean energy and utility infrastructure beyond 2027 across the Americas, El Salvador and Panama in Central America.

Source: Central America Briefing | Vol 14, Issue 5

24 February 2026

IDB President Idan Goldfajn and President Nayib Bukele agreed on a US $1.3 billion deal
for El Salvador. This will allow the country to invest in housing, tourism, health, and
education. In 2025, the IDB authorized over $1,264.7 million in funding for 30 projects in
El Salvador, making the IDB one of El Salvador’s strongest financial allies.

Photo Credit: https://www.instagram.com/p/DPr6kKAj9Xk/

Source: Central America Briefing | Vol 14, Issue 4

6 February 2026

Laura Fernández, the 39-year-old conservative candidate of the ruling Partido Pueblo Soberano, won Costa Rica’s presidential election on 1 February 2026 with approximately 49.6 per cent of the vote, clearing threshold required to avoid a second round and marking a decisive endorsement of the outgoing administration.  Fernández also secured a historic legislative majority, winning 31 of 57 seats in the Asamblea Legislativa.  The campaign was dominated by citizen anxiety over rising violent crime, which Fernández addressed with proposals for states of exception in high-crime zones and the construction of a high-security mega-prison modelled on El Salvador’s approach.  On the economic front, she has signalled her intention to pursue the sale of state assets, advance the delayed electric train project, and deepen Costa Rica’s integration into global value chains. Fernández is due to be inaugurated on 8 May 2026.

Photo Credit: Official Instagram Account of Laura Fernández https://www.instagram.com/laura_fernandez_delgado/?hl=en

Source: Central America Briefing | Vol 14, Issue 3

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