Guatemala and Nicaragua Lead Central America’s Economic Growth in 2026
Guatemala and Nicaragua recorded the strongest economic growth in Central America during the first months of 2026, while El Salvador showed a significant recovery, according to Secmca data.
Economic growth in Central America continued to show resilience during the first months of 2026, with Guatemala and Nicaragua emerging as the region’s strongest-performing economies, according to the latest Monthly Economic Activity Report published by the Secretariat of the Central American Monetary Council (Secmca).
The report highlighted sustained regional expansion, while also revealing notable differences in performance among countries and productive sectors across Central America and the Dominican Republic.
Nicaragua Records the Highest Growth Rate in the Region
According to the report, Nicaragua registered the highest accumulated growth in its Monthly Index of Economic Activity (IMAE) through February 2026, reaching 6.39%.
Guatemala ranked second with accumulated growth of 4.36%, above the regional Central American average of 4.19%.
The report also noted that Nicaragua has maintained one of the strongest economic growth rates in the region for the second consecutive year.
El Salvador Shows Strong Recovery in 2026
El Salvador posted accumulated growth of 3.86%, a significant improvement compared to the 1.08% reported during the same period in 2025.
The country also outperformed Honduras, which recorded accumulated growth of 3.29%, and moved closer to Costa Rica, which registered 3.72%.
According to Secmca, El Salvador’s recovery was mainly driven by the construction sector, which accelerated from 1.5% growth in 2025 to 11.8% in 2026.
Financial and insurance activities also contributed to the expansion, growing 6.5%, while accommodation and food services increased by 5.4%.
Costa Rica and Panama Maintain Positive Momentum
In Costa Rica, financial services expanded 6.5%, while accommodation and food services reversed the contraction recorded in 2025 to grow 5.4% in 2026.
Meanwhile, Panama reported 4.08% year-over-year growth, while the Dominican Republic registered accumulated growth of 3.69%, based on regional data compiled by central banks and national statistics offices.
GDP Forecasts Point to Continued Regional Expansion
Secmca’s 2026 GDP projections suggest that:
- Nicaragua could grow between 3.5% and 4.5% during the year,
- while Guatemala is expected to expand between 3.1% and 5.1%.
- Honduras is projected to record growth ranging from 3.0% to 4.0%.
- For El Salvador, the organization estimates economic growth between 3.0% and 3.5% in 2026, following an estimated 3.91% expansion in 2025.
Central America Maintains Post-Pandemic Growth Trend
The regional report indicates that Central American economies have largely maintained a sustained growth trajectory since the post-pandemic recovery period, although with considerable differences between countries and economic sectors.
The data also reflects how construction, financial services, tourism-related activities, and insurance continue to play a key role in supporting economic activity across several economies in the region.
