Latin American countries showed mixed economic results in 2025. Costa Rica led the region with strong growth in medical exports (+34%) and global recognition in investment attraction. Guatemala seeks to digitalize processes to attract more FDI, while El Salvador remains dependent on remittances and struggles with low investor appeal. Honduras is stagnant with little new capital inflow. Meanwhile, Mexico, Peru, and Argentina showed dynamism through private investments, rising exports, and large projects, though Argentina faces political turbulence with corruption allegations close to the presidency.
Costa Rica
Costa Rica: Precision and medical equipment sector grows +34% as of July this year
According to the latest goods export report for the January–July 2025 period, the sector consolidated itself as the country’s leading industry, representing 48% of total exports and reaching US$6.305 billion—an increase of +34% compared to the same period in 2024.
Data from the Costa Rican Foreign Trade Promoter (PROCOMER) shows that this is the third time the sector has recorded growth of 30% or more during this period: in 2021, 2023, and now in 2025 (January–July).
The products driving this growth are needles, catheters and similar instruments (+98%), other medical devices (+17%), and medical prostheses (+7%). The sector continues to perform positively across most markets, notably in the United States, the Netherlands, and Belgium.
Source: Revista Summa
Costa Rica ranks third worldwide in foreign investment attraction performance, according to Greenfield Index 2025
Costa Rica has secured the third spot globally and the first in Latin America in the Greenfield FDI Performance Index 2025 by fDi Intelligence, which measures how much multinational companies invest in new (greenfield) projects relative to the size of each economy.
The report highlights that countries across all regions attracted more Foreign Direct Investment (FDI) than their share of global GDP would suggest, positioning Costa Rica as the regional benchmark.
The index compares each country’s share of greenfield FDI projects with its share of global GDP. A score above 1 indicates outperformance relative to economic size.
Within Central America and the Caribbean, Costa Rica leads with a score of 6.2 (third worldwide), followed by El Salvador (2.7), Panama (1.5), and the Dominican Republic (1.3).
Source: El Observador
Guatemala
Digitalización y simplificación de trámites permitiría a Guatemala captar más inversión extranjera por unos US$1 mil 200 millones
A study by Fundesa indicates that Guatemala could attract between US$1 billion and US$1.2 billion in additional foreign direct investment (FDI) if it manages to accelerate the digitization and simplification of its procedures. Although 840 processes have already been put online under the Simplification Law, there are still more than 5,000 pending, which generate institutional delays and undermine investor confidence.
Among the biggest obstacles are health registrations, which have accumulated more than 22,000 files in the Ministry of Health, and environmental impact studies, which have slowed down urbanization, industry, and trade projects. These delays not only limit competitiveness but also discourage new companies from coming to the country. Fundesa and government authorities agree that the Digital Transformation Strategy should focus on streamlining interoperability between ministries and modernizing platforms to ensure more agile, transparent processes that are in line with economic development needs.
Source: Prensa Libre
El Salvador
El Salvador es el segundo país del Triángulo Norte que más remesas recibe
Between January and May 2025, Guatemala, El Salvador, and Honduras collectively received US$18.5471 billion in remittances, 17% more than in 2024, according to the IOM. Guatemala led with US$9.9083 billion (53.4%), followed by El Salvador with US$3.9748 billion (21.4%) and Honduras with US$4.664 billion (25.1%). In the case of El Salvador, 92.5% of remittances came from the United States, where more than 2 million compatriots reside, providing vital support for consumption, education, health, and basic services.
Domestically, San Salvador receives the largest share of remittances, followed by San Miguel and Santa Ana. In the first five months alone, San Miguel received US$446.6 million and Santa Ana US$312.3 million, both increases compared to 2024. These flows strengthen local economies and sustain thousands of households, highlighting the region’s structural dependence on family remittances. Behind each figure are the stories of more than 500,000 migrants from the Northern Triangle who seek better opportunities each year, whose efforts are reflected in the stability of their families.
Souce: El Salvador.com
Tax exemption will not attract foreign investment
The Legislative Assembly approved that foreign companies investing more than US$2 billion will not pay municipal taxes, but economists warn that these measures will not attract investment. According to César Villalona, the low FDI in El Salvador is not due to the tax burden, but to low domestic demand, lack of legal certainty, and the narrow Salvadoran market. In fact, in 2024, El Salvador was once again last in Central America in terms of investment attraction, with US$640 million, compared to more than US$5 billion in Costa Rica. The specialist recalled that similar promises in the past, such as dollarization, FTAs, or the Bitcoin Law, also failed to reverse the trend, and that even in the region’s largest economies, no single company invests amounts close to those proposed by the government.
Souce: Diario Co Latino
Honduras
Honduras fails to attract more than $1.4 billion in foreign investment, economist laments
Economist Ismael Zepeda warned that Honduras is facing stagnation in attracting foreign investment, which has failed to exceed the US$1.4 billion reached seven years ago. He pointed out that most of this corresponds to capital reinvestment by companies already established in the country, while the arrival of new investors is minimal, representing less than 30% in recent years.
Political conflict, economic uncertainty, and the electoral outlook have limited the inflow of fresh capital, slowing job creation and the country’s economic momentum.
Souce: Proceso Digital
Mexico
Mexico Demonstrates Bilateral Cooperation with the U.S.; Reaffirms Sovereignty and Positive Economic Outlook
For Mexico, August was marked by a combination of significant political and economic developments. The country took new steps to ease friction in its trade relationship with the United States, while economic indicators, strategic policies, and announcements from the business and labor sectors continued to strengthen its appeal as a prime investment destination.
After securing in July another extension of the grace period for U.S. tariff increases, this time for 90 days, the Mexican government announced the extradition of 26 drug traffickers, including some of the nation’s most notorious kingpins. In a gesture of cooperation, and under a logic of concessions, Mexico sent a signal of openness to negotiation and dialogue.
In this context, criticism also emerged from the social sphere after the federal government supported the possibility of military cooperation with the United States. Mexican President Claudia Sheinbaum Pardo responded to concerns by defending national sovereignty and clarifying that such collaboration would be limited to specific cases that do not compromise independence.
Aligned with this stance, Sheinbaum Pardo met in the first days of the month with Canadian ministers, with some media outlets reporting that the encounter aimed to find common ground to confront the new scenario of trade uncertainty. Beyond North America, Sheinbaum also engaged with her Guatemalan counterpart, Bernardo Arévalo de León.
On the public finance front, a plan was presented to support Pemex in order to ensure its stability. In the private sector, pharmaceutical companies announced investments exceeding 12 billion pesos, and financial giant Blackstone confirmed the expansion of its operations in Mexico. On the labor front, Volkswagen and its workers in Mexico reached an agreement on a salary increase.
These developments strengthen Mexico’s business standing, alongside positive economic indicators: Mexican exports to the U.S. grew 6.3% in July despite existing tariffs, and consumer inflation in the first half of August rose 3.49% year-over-year, close to the late July figure (3.48%) and within Banxico’s target range of 3% +/- one percentage point.
Gross Domestic Product (GDP) expanded 0.6% in the second quarter of 2025, a positive figure though slightly below the initially forecasted 0.7%. In monetary policy, the Bank of Mexico cut its benchmark interest rate by 25 basis points to 7.75%, its lowest level in three years, an adjustment that reflects the institution’s confidence in the country’s growth prospects amid controlled inflation.
Peru
MEF projects 3.5% growth in 2025 driven by private investment and infrastructure works
The Ministry of Economy and Finance (MEF) reaffirmed that the Peruvian economy will grow by 3.5% in 2025, according to the Multi-Year Macroeconomic Framework (MMM) 2026-2029. This performance will be driven by domestic demand, particularly by private investment projected at 4.5% (more than 57 billion dollars), as well as by increased infrastructure works, public-private partnership projects and mining dynamism. This context of sustained investment and consumption will favour job creation, increased household consumption and a boost to exports thanks to greater mining, agricultural and fishing supply.
In the first half of 2025, GDP grew by 3.4%, mainly due to the dynamism of domestic demand, which advanced by 6.2% thanks to private investment, with a jump of 8.9%, its highest rate since 2021. The MEF explained that this growth is due to infrastructure projects, self-construction and more accessible financing, as well as the continuation of mining projects such as San Gabriel, Antamina, Inmaculada, Yumpag and Toromocho phase II. At the same time, public investment also performed well, prioritising the closing of infrastructure gaps, which sustained job creation and family income.
Sources: Diario El Peruano
Hapi, the Peruvian app, celebrates 500,000 users and hits the Nasdaq screen in Times Square
Hapi, the fintech company founded by Peruvians to invest in the US stock market for Latin Americans, celebrated reaching 500,000 users with an appearance on the Nasdaq tower screen in Times Square, New York. This milestone, considered aspirational for global brands, reinforces the startup’s visibility among investors, partners and customers, and symbolises its consolidation in less than five years as a trusted platform in 20 countries in the region. Through its app, it allows users to invest in stocks from £5 and in cryptocurrencies from £1, with no brokerage fees and in a matter of minutes, facilitating access for people aged 18 and over without the need for prior experience. Hapi CEO Dusko Kelez highlighted that this recognition reflects the confidence of US financial institutions and the company’s ability to represent Latin America in a competitive market.
Sources: DF-SUD
Historic record: Peruvian agricultural exports grow 23.5% and are expected to exceed US$13 billion in 2025
In the first half of 2025, Peruvian agricultural exports reached a record US$4.982 billion, 23.5% more than in the same period in 2024, exceeding the growth of the country’s total exports. The United States remained the main destination with an increase of more than 30% despite new tariffs, followed by the Netherlands, Spain, Chile and Mexico. Among the most notable products were fresh avocados (+14%), table grapes (+43%) and cocoa (+50%), while blueberries were the only ones to decline.
Ica led the exporting regions with 27% of the total, driven by its fresh grapes, while Lambayeque grew 70% due to the rise in avocados. The good moment coincided with the approval of the new Agricultural Law, which reduces income tax to 15% for large agro-exporters between 2026 and 2035. Although this law would entail a fiscal cost of S/20 billion, experts argue that it could attract investment and employment. Agro-exports are estimated to exceed US$13 billion by the end of 2025.
Sources: El Comercio
Argentina
President Milei’s sister accused of corruption
The scandal erupted after the release, in late August, of audio recordings made by Diego Spagnuolo, former director of the National Disability Agency (ANDIS), in which he denounced an alleged kickback scheme in the purchase of medicines. According to the account, an 8% return was demanded from the supplying drugstores, and of that total, 3% was allocated to Karina Milei, secretary general of the Presidency and sister of President Javier Milei, which would imply a monthly collection of close to $500,000–800,000. In addition, the courts ordered a series of raids and a criminal complaint for corruption was filed by lawyer Gregorio Dalbón, in what was described as one of the biggest scandals since the return of democracy.
This case dominated the political agenda in Argentina in August because it directly affected the inner circle of the executive branch, undermined the government’s narrative of eradicating corruption, and occurred just before key elections—which increased social tension and judicial pressure on the ruling party—putting the credibility of the administration in check.
Source: Cadena SER
Gualcamayo announces million-dollar investment in San Juan
The Gualcamayo gold mine, located in the province of San Juan and taken over by the Spanish group Aisa through Minas Argentinas, announced an investment of $665 million in the Carbonatos Profundos project, designed to qualify for the national government’s Large Investment Incentive Regime (RIGI). It includes the construction of an underground mine, a pressure oxidation plant (the seventh in the world), and a 50 MW solar park, with an annual production projection of 120,000 ounces of gold starting in 2029, revitalizing the sector in an initiative that reinforces legal certainty as key to attracting sustainable and robust investments.
Source: La Nación
Brazil
August brought positive signs for Brazil’s economy and environment. The country recorded the lowest number of wildfires in the historical series for the month, attributed to stronger prevention and monitoring policies. In the economic field, the financial market raised GDP projections to 2.16% in 2025, reflecting greater confidence in sustained growth. Additionally, the cost of the basic food basket fell in 24 of the 27 state capitals, easing household budgets and signaling improved consumption conditions. These indicators point to a scenario of greater economic and environmental stability in the country.
Sources: Agência Publica e Gov.Br