Central America

Economist to be sworn in as Costa Rica president

AFP

Economist and former finance minister Rodrigo Chaves is to be sworn in Sunday as Costa Rica’s president for a four-year mandate focused on reinvigorating one of Latin America’s most stable economies.

The former World Bank executive, who resigned from the global lender amid a sexual harassment scandal, has vowed to tackle Costa Rica’s severe economic problems: rising foreign debt — about 70 percent of GDP — a poverty rate of 23 percent, unemployment of 14 percent and public sector corruption.

Tourism, one of the country’s main economic drivers, was hard hit by the coronavirus pandemic, and the country of 5.2 million people experienced an increase in unemployment equaled in the region only by Peru.

“It is fundamental for the country that Chaves improves the economy,” Adrian Aguiluz, a 35-year-old resident of the capital, said ahead of the inauguration.

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“This new government has an opportunity to do something different.”

Chaves, who served six months as finance minister in the outgoing government, won a runoff election over former president Jose Maria Figueres — himself tainted by a corruption scandal.

The 60-year-old Chaves had been a surprise qualifier for the April 3 runoff, having polled fourth ahead of February’s first round.

While he was a senior official at the World Bank, where he worked for 30 years, he was investigated over sexual harassment complaints brought by multiple women.

He was demoted, and later resigned to take on the role of finance minister in President Carlos Alvarado’s government.

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Last month, Chaves offered “sincere apologies” to two accusers, young subordinates, having previously said the alleged harassment amounted to mere “jokes” that were “misinterpreted due to cultural differences.”

This week, Chaves said his government would not ratify the Escazu Agreement that establishes protection for environmentalists, arguing it was unnecessary and would harm the economy. Costa Rica, a regional leader in environmental protection,had hosted the signing of the agreement in 2018.

The new president has also vowed to improve Costa Rica’s deal with the IMF for a loan of more than $1.7 billion.

Spanish King Felipe VI is set to attend the ceremony in San Jose, along with delegations from nearly 100 countries.

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Central America

Guatemala Dismantles Largest Cocaine Lab Found in 15 Years Near Mexico Border

Security forces in Guatemala discovered what authorities described as the largest cocaine laboratory dismantled in the country in the last 15 years, located in the southwest near the border with Mexico, officials announced on Wednesday.

Guatemalan Defense Minister Henry Sáenz said during a press conference that the operation was carried out as part of “Operation Ring of Fire,” a large-scale security initiative launched by the Guatemalan government and military to reinforce border controls and combat organized crime, particularly along the Mexican border.

The operation focused on the community of Zanjón San Lorenzo, in the municipality of Ayutla, San Marcos department, where authorities uncovered a sophisticated criminal compound made up of three interconnected buildings equipped to carry out the full cocaine production process.

“What we can preliminarily observe in these facilities is the complete production cycle used to produce cocaine ready for consumption,” Sáenz stated, adding that the investigation remains ongoing and additional findings could emerge.

The minister highlighted the scale and complexity of the laboratory, comparing it to previous major drug seizures in the country.

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“The last major laboratory we found was in El Estor, Izabal, in 2019, and that facility only processed coca paste,” he explained.

Authorities arrested eight individuals during the raid and seized a cache of weapons that included 14 military-style assault rifles, three 9mm pistols, and 1,306 rounds of ammunition.

Security forces also confiscated cash totaling 74,461 quetzales (approximately $9,600), $26,787 in U.S. currency, and 118,000 Mexican pesos.

Central America

Opposition leader highlights migration crisis in Panama speech

Opposition leader María Corina Machado recalled on Monday, during her final day in Panama, the thousands of Venezuelan migrants who crossed the dangerous Darién Gap jungle on their journey toward North America in search of better living conditions.

Speaking before Panama’s National Assembly, Machado stated that “more than 500,000 Venezuelans have crossed the Darién in search of freedom,” adding that many did not survive the journey.

Her remarks highlighted the Darién Gap as a central route in the recent regional migration crisis, where thousands of migrants—mostly Venezuelans—have attempted to travel north through one of the most dangerous jungle passages in the Americas.

According to migration data cited in recent years, the Darién route has seen daily flows of over a thousand migrants at its peak, reflecting the scale of the humanitarian challenge in the region.

Central America

Nicaragua’s Alliances With U.S. Rivals Could Trigger More Sanctions, Analysis Says

The administration of U.S. President Donald Trump is expected to maintain political and economic pressure on the government of Nicaragua, led by Daniel Ortega and Rosario Murillo, due to its growing alliances with Russia, China and Iran, according to an analysis released Monday by the Centro de Estudios Transdisciplinarios de Centroamérica (Cetcam).

The report states that tensions between Washington and Managua have increased since the beginning of Trump’s second term and could worsen amid the regional political climate, particularly because of developments in Venezuela and Cuba.

Cetcam researchers noted that since the second half of 2025, the U.S. government has intensified criticism of the Sandinista administration, mainly regarding political prisoners, human rights, religious freedom and what it describes as the authoritarian model established by Ortega and Murillo.

“With this background, it is possible to foresee that Washington will maintain pressure, including sanctions, against the Ortega-Murillo dictatorship,” the think tank stated in its report.

The study also warns that one of Washington’s main concerns is the strengthening relationship between Managua and countries considered strategic rivals of the United States, particularly Russia, China and Iran.

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Among the developments highlighted is the recent ratification by the Russian Senate of a military cooperation agreement signed with Nicaragua in 2025. The deal is expected to strengthen strategic coordination and Russia’s presence in Central America for an initial five-year period.

According to Cetcam, the move will “hardly go unnoticed” by the United States.