Nicaragua to Lead Central American Growth in 2026, According to ECLAC

Nicaragua is projected to be the fastest-growing economy in Central America in 2026, with a projected expansion of 4.5% of its Gross Domestic Product (GDP), according to the Economic Survey of Latin America and the Caribbean 2026 by the Economic Commission for Latin America and the Caribbean (ECLAC).

This projection places the country ahead of the region's major economies. For 2026, ECLAC estimates growth of 4.4% for Panama, 4.0% for Guatemala, 3.9% for El Salvador, 3.7% for Costa Rica, and 3.5% for Honduras. Nicaragua's projected performance is also significantly above the Latin American and Caribbean average, which is projected at 2.2%.

This year's outlook comes after Nicaragua registered an estimated growth of 4.9% in 2025, placing it among the Latin American economies with expansions between 4% and 5%. Costa Rica, Grenada, Argentina, Panama, and Guatemala were also in that group.

ECLAC's projections also indicate that Nicaragua's dynamism will continue. For 2027, the organization projects growth of 4.0%, which would keep Nicaragua among the fastest-growing economies in Central America during the period analyzed.

The behavior of economic activity also shows a difference compared to the slowdown observed in much of the region. During the first quarter of 2026, ECLAC notes that the loss of momentum was not uniform across countries. While year-on-year growth slowed in Latin America as a whole and in South America, Central America registered a less pronounced slowdown.

Among the economies compared, Nicaragua stands out as the country with the fastest-growing economic activity, followed by El Salvador and the Dominican Republic.

This performance is unfolding against a complex international backdrop. ECLAC warns that Latin America and the Caribbean face significant uncertainty, geopolitical and financial tensions, as well as increased pressure on international energy markets. Rising energy prices and tighter financial conditions are also factors shaping the region's economic outlook.

Even in this environment, Nicaragua stands out for maintaining a growth projection above the regional average. ECLAC estimates that Latin America and the Caribbean will grow by 2.2% in 2026, after expanding by 2.4% in 2025, and will reach 2.5% growth in 2027.

The organization considers these growth rates still insufficient to close the region's development gaps. In this context of moderate growth and global uncertainty, Nicaragua's projection stands out within Central America, with an estimated expansion of 4.5% for 2026 and continued growth in 2027.