Caribbean & Central America - July 2026

GUATEMALA | FTA with Peru takes effect. On 1 July a new bilateral free trade agreement (FTA) between Guatemala and Peru took effect. In a joint statement, the two governments said that bilateral trade totalled US$1.22bn from 2020-2025, which they said indicates the potential for further growth. According to the same statement, for Guatemala, the new deal will benefit exports such as medicines, confectionary, paper, cardboard, aluminium products, and sauces. For Peru, the deal will benefit exports of grapes, blueberries, citrus fruits, asparagus, coffee, cocoa, textiles, and various manufactured goods. The FTA was first signed in Guatemala City on 6 December 2011, while a supplementary protocol was inked in Lima on 23 April 2025 to clear up outstanding issues.

PANAMA | Canal expansion 10-year anniversary. On 28 June the Panama Canal Authority (ACP) commemorated the 10th anniversary of the opening of its expanded waterway. In a statement issued on 26 June, the ACP said the canal expansion “represented the largest infrastructure project since the opening of the original canal in 1914, generating tangible benefits for both Panama and the world”. It highlighted that “during the first eight months of Fiscal Year 2026 (October 2025 through May 2026), 8,593 transits were recorded, of which 27.7% correspond to Neopanamax vessels [the largest that the canal can handle], representing 2,385 transits”. It added that as of May 2026, over 31,000 transits had passed through the expanded locks since their inauguration and noted that the expanded canal “now accounts for more than 50% of the total revenues generated by the interoceanic waterway”.

Central America & Caribbean: inflation rate
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Central America & Caribbean: GDP growth (%)
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