Innovation and Sustainability: Dual Engines of Growth

Innovation, the development of specialized talent, the integration of new technologies and services, and sustainability in logistics operations represent both challenges and opportunities. Logistics is more than just transporting goods—it is a bridge between global producers and consumers. It is a fundamental pillar of international trade that drives employment, economic development, and national competitiveness.

In this context, logistics in Panama stands out due to its robust ecosystem, which includes its interoceanic canal, modern airports, and special economic zones such as Panama Pacifico and Colón. Around 30% to 35% of the national economy is tied to logistics activities, highlighting its vital importance.

Key Players and Global Institutions Supporting Logistics

There are many actors involved in the logistics supply chain: producers or suppliers of raw materials; operators; land, sea, or air transportation companies; firms that store, package, and distribute goods; ports, airports, special logistics zones, customs, retailers, commercial businesses, and the end consumer. In addition, various national and international government institutions are involved in planning, regulating, and promoting innovation in logistics activities.

International organizations such as the International Maritime Organization, the World Trade Organization, and the World Customs Organization play active roles in shaping global logistics practices.

Expo Logística 2025: A Platform for Insight and Strategy

At the recent Specialized Logistics Congress “Data and Innovations Impacting the Supply Chain and Sector Development,” held as part of Expo Logística 2025 in Panama and supported by the National Secretariat for Science, Technology, and Innovation (Senacyt), experts and professionals in the logistics sector discussed Panama’s advantages, opportunities to strengthen the local logistics ecosystem, and global challenges.

“In an increasingly interconnected and demanding global environment, innovation and the efficient use of data not only optimize supply chain processes but also strengthen the competitiveness of our businesses and economies,” stated Manuel José Paredes, President of the Commission for Exhibitions, Events, and Professional Training of the Chamber of Commerce, Industries, and Agriculture of Panama (CCIAP).

Panama as a Multimodal and Integrated Logistics Hub

Jorge Barnett, Director of the Center for Innovation and Logistics Research at Georgia Tech Panama and moderator of a panel on the outlook for multimodal transportation in Panama, noted that logistics in Panama has evolved far beyond being a maritime or air hub. He emphasized that Panama is now a valid point of convergence for various modes of transportation, global routes, and value chains.

“Due to this scale, a range of enabling infrastructure and a portfolio of favorable services for global trade have emerged. However, there are also challenges,” he said.

Resilience Amid Global Disruptions

Indeed, supply chains can be vulnerable to environmental factors such as natural disasters, health crises, geopolitical conflicts, wars, cyberattacks, transportation disruptions, talent loss, and, more recently, tariff adjustments announced by the U.S. government. In response to these challenges, countries must adapt to remain resilient, efficient, and sustainable.

In this ever-evolving scenario, logistics in Panama must incorporate science and technology to remain globally competitive.

Technology: A Catalyst for Transformation

Science and technology play a direct and strategic role in logistics processes, including digital infrastructure, interconnectivity, and operational sustainability. From academia, research centers, and emerging tech companies, innovation can support logistics operations through:

• Fleet management platforms
• Internet of Things (IoT) for real-time monitoring of goods and containers
• Artificial intelligence for demand prediction and dynamic inventory management
• Big data for predictive analytics and process optimization
• Blockchain for supply chain security and traceability

Green Logistics and Sustainable Practices

Science also contributes to reducing energy and resource consumption in the logistics sector. Environmental impact studies of routes and transportation modes, clean energy solutions for fleets, and sustainable infrastructure design are leveraged to make Panama’s logistics greener and more efficient.

Data-Driven Decision-Making in Uncertain Times

Gordon Wilmsmeier, Director of the Center for Global Transport and Logistics (CSGL) at Kühne Logistics University in Hamburg, Germany, emphasized the importance of digital skills and the challenges of digital transformation. He observed that while more data is generated daily, many companies struggle to identify which data truly adds value to decision-making.

He also pointed to unpredictable factors—such as climate events and armed conflicts—that increase the complexity of planning, underscoring the need for relevant and actionable data.

According to the United Nations, the total volume of data is expected to reach 175 zettabytes by 2025. Data science and web analytics have great potential to support global trade and sustainable development, especially in strategically positioned countries like Panama.

Human Capital: The Core of Innovation

“The training of professionals for success in logistics and the supply chain is a global challenge,” said Dr. María Heller, Director of Learning at Senacyt. “Senacyt offers training programs and scholarships in key areas such as data science, robotics, and automation. These scholarships help train highly qualified Panamanians to conduct research and design systems that optimize supply chains.”

Senacyt has launched a National Strategy to integrate Panama into the global supply chain for microelectronics and semiconductors to support long-term development. This initiative positions logistics in Panama as a key player in the transit and distribution of technological products. Two scholarship calls have already been issued to train local talent in the semiconductor field.

Structural Challenges and Opportunities for Improvement

Despite the progress, challenges remain. Speakers at the congress identified several obstacles to the sector’s continued growth:

• Poor road infrastructure and traffic congestion
• Disruptions caused by protests
• Limited digitalization in customs procedures
• Need for better coordination and integration across logistics actors
• Underutilization of multimodal transport options

Experts also emphasized equipping potential collaborators with digital skills, practical experience, and a proactive mindset. They recommended updating academic curricula to reflect current and future industry needs better.

Looking Ahead

Integrating science, technology, and talent development is vital to unlocking the full potential of logistics in Panama. As digital transformation accelerates, Panama’s strategic location and infrastructure give it a unique advantage in serving as a leading logistics hub in the region. However, success will depend on the country’s ability to invest in innovation, human capital, and sustainable practices.

The United States’ evolving tariff policy is set to dramatically reshape global trade, positioning Mexico as a strategic and increasingly indispensable partner for companies seeking operational efficiency, cost advantages, and proximity to the world’s largest consumer market.

The implementation of reciprocal tariffs by the United States, which officially went into effect on April 2, marks a bold move toward protectionism with far-reaching implications for global commerce. The policy introduces a framework in which US import duties mirror those foreign nations impose on American goods. As a result, countries such as China, India, members of the European Union, and Southeast Asian nations—many of which maintain high tariffs on US exports—will now face equivalent duties when shipping their goods into the American market.

US reciprocal tariffs boost Mexico by creating new avenues of opportunity in this shifting trade landscape. As global companies reassess their supply chains to maintain access to the US market under more favorable conditions, Mexico has emerged as a prime alternative to long-distance manufacturing hubs in Asia and Europe. The close economic ties between the US and Mexico, reinforced by the United States-Mexico-Canada Agreement (USMCA), provide a significant strategic advantage.

According to a recent analysis by MTM Logix, a leader in international logistics and shipping control tower technology, these new tariffs will redirect substantial global trade volumes. The firm’s report underscores how US reciprocal tariffs boost Mexico by shifting trade flows away from countries facing new tariff burdens and channeling investment into regions with preferential access to the US market.

“With the introduction of reciprocal tariffs, we anticipate a dramatic shift in international trade dynamics, redirecting substantial U.S. import volumes from Asia and Europe toward Mexico, thanks to the zero-tariff access guaranteed by the USMCA,” said Mario Veraldo, CEO of MTM Logix.

Economic and Industrial Impact

The MTM Logix study identifies several sectors in Mexico that stand to gain from this shift, including automotive manufacturing, electronics, medical devices, and textiles. These industries are expected to see a substantial rise in demand as international firms look to relocate or expand operations within Mexico to avoid the higher costs associated with new tariff regimes.

In particular, US reciprocal tariffs boost Mexico’s automotive sector by incentivizing European and Asian manufacturers to establish new facilities or increase output from existing plants. With tariffs making exports from traditional Asian manufacturing hubs less competitive, companies are accelerating investments in Mexican production lines.

“We are witnessing a historic transformation in North America’s production chain,” Veraldo noted. “Global companies, facing increasing tariff pressure, are already beginning to realign their supply chains toward Mexico—accelerating processes that would normally take years. Mexico offers not only cost competitiveness but also unmatched logistical proximity.”

This transformation is not limited to heavy industry. Mexico’s already robust electronics and medical device sectors are expected to receive a surge of foreign direct investment. The combination of a skilled workforce, well-developed supply chains, and access to the US market under the USMCA continues to enhance the country’s appeal as a manufacturing powerhouse.

Logistical Opportunities and Infrastructure Challenges

As trade flows shift and industrial demand increases, Mexico’s logistics sector is on the brink of rapid expansion. However, US reciprocal tariffs boost Mexico in terms of economic opportunity and by placing a new urgency on infrastructure development. The need for efficient and scalable transportation networks, including ports, railways, highways, and cross-border transit facilities, has never been greater.

MTM Logix anticipates significant strain on northern Mexico’s logistics infrastructure, particularly near border cities like Tijuana, Ciudad Juárez, and Nuevo Laredo. These areas are expected to become even more critical gateways for international trade and will require substantial investment to prevent bottlenecks.

“It is crucial that Mexico rapidly invests in logistics and energy infrastructure to support the expected surge in industrial production,” Veraldo emphasized. “The expansion of ports, railways, and highways is essential for this transition to be successful and sustainable in the long term.”

In tandem with infrastructure, Mexico will also need to address challenges related to workforce readiness. As demand for skilled labor rises, workforce development programs and vocational training initiatives will become increasingly important to support the country’s growing role in global supply chains.

Projections and Future Trends

Looking ahead, the outlook remains bullish for Mexico’s export-driven economy. MTM Logix forecasts that by 2028, Mexico’s annual exports to the US could exceed $600 billion, cementing its role as the United States’ top trading partner for manufactured goods. This upward trajectory reflects a deeper trend: US reciprocal tariffs boost Mexico by embedding it even more firmly into the economic fabric of North America.

“This is not just a temporary shift,” Veraldo concluded. “We are on the cusp of a new era in which Mexico will cement its position as the natural extension of the U.S. industrial base, further strengthening the existing economic integration between both nations.”

US reciprocal tariffs boost Mexico by incentivizing nearshoring and reinforcing the long-term viability of North American supply chains. In an age of geopolitical uncertainty and growing economic nationalism, companies increasingly prioritize stability, efficiency, and regional proximity—qualities Mexico offers in abundance.

As the ripple effects of this tariff policy continue to unfold, Mexico’s role on the world stage will only grow. From manufacturing to logistics and beyond, US reciprocal tariffs boost Mexico in ways that could redefine global trade routes for decades to come.

Beijing’s decisions affect Chinese companies’ electric vehicle production plans in Brazil and Mexico amid U.S. tariff tensions.

The rapid expansion of China’s electric vehicle (EV) industry into Latin America has hit a significant speed bump. Two of the country’s most prominent EV manufacturers, Geely and BYD, are facing delays in their international investment projects, particularly in Brazil and Mexico. The delays stem from the Chinese government’s hesitancy to greenlight the overseas expansions due to growing concerns about technology transfer and global trade tensions—especially those involving the United States.

Geely Eyes Brazil Through Renault Partnership

In February 2025, Geely announced a groundbreaking partnership with French automaker Renault to penetrate the Brazilian automotive market. Under the terms of the agreement, Geely will utilize Renault’s existing production facilities in Brazil and take a minority stake in its operations. The move is seen as a strategic step for Geely to fast-track its presence in South America without building a plant from scratch.

Just 52 days after the deal was signed, Geely began selling its electric vehicles in Brazil, signaling strong initial momentum. The company’s EX5 model has officially launched in South America and will be available across 18 cities through a network of 23 dealerships. While the commercial rollout is underway, a concrete timeline for local production has yet to be announced, primarily due to pending approval from Chinese authorities. While promising in scope, the Geely and BYD investments in Latin America are increasingly shaped by decisions in Beijing rather than market demand.

BYD Awaits Green Light for Factory in Mexico

While Geely has taken the partnership route, BYD is pursuing an independent facility in Mexico. The company initially unveiled its plan to build a manufacturing plant in 2023, with site selection expected to conclude by the end of 2024. Mexico’s strategic importance, proximity to the U.S. market, and existing trade agreements like the USMCA make it an ideal hub for BYD’s North American ambitions.

However, the project has hit a bureaucratic roadblock. Sources familiar with the matter say the Chinese National Development and Reform Commission (NDRC) has expressed reservations about the proposed plant, particularly regarding the potential risks of technology transfer. These concerns are likely amplified by the increasingly complex global trade environment and the potential for proprietary Chinese EV technology to be exposed in foreign jurisdictions. This regulatory caution has placed the Geely and BYD investments in Latin America under closer scrutiny, complicating the execution of even well-planned initiatives.

U.S. Tariff Uncertainty Complicates Investments

A significant factor influencing the Chinese government’s slow pace in approving outbound investments is the current trade policy landscape in the United States. Industry sources note that the U.S. government’s reinstatement of 25% tariffs on imported vehicles—initially introduced by former President Donald Trump and maintained in subsequent administrations—is causing unease within China’s automotive sector. Manufacturers are being advised to reassess their international strategies, especially when export routes might lead directly or indirectly to the U.S. market.

Industry associations in China have warned companies that these tariffs pose long-term risks to profitability and operational security. Consequently, Beijing takes a more calculated approach before approving any high-profile overseas projects, including the Geely and BYD investments in Latin America. The unpredictability of U.S. trade policies means that Chinese firms must weigh the benefits of market access against the potential for sudden regulatory shifts.

A Shift in China’s Investment Strategy

While foreign investments by Chinese automakers are not being outright rejected, regulatory authorities have undeniably raised the bar for approvals. A third source familiar with the internal discussions noted that the government has adopted a more rigorous screening process. This includes demanding more extensive documentation and longer lead times for review. The goal appears to be safeguarding critical technology while allowing competitive companies to expand into international markets—albeit under stricter oversight.

This change reflects broader concerns within Beijing over how outbound investments might inadvertently contribute to strengthening foreign competitors or exposing Chinese innovation to unauthorized use. These policy shifts now directly impact the pace and scope of Geely and BYD investments in Latin America, adding complexity to ambitious cross-border ventures.

Global Expansion Under Pressure

The approval delays are critical for Chinese automakers, who are increasingly looking to global markets to offset slowing growth at home and mounting protectionist policies abroad. Geely, for instance, has been aggressively pursuing strategic alliances outside of China. In addition to its deal with Renault in Brazil, the company collaborates with the French firm in South Korea, producing vehicles using Geely’s technology.

Geely’s founder, who owns renowned brands such as Volvo and Polestar, has positioned the company as a global innovator, leveraging partnerships to scale quickly. However, even the most carefully crafted alliances cannot proceed without the blessing of Chinese regulators—an emerging bottleneck in the global expansion of Chinese EV firms.

BYD, which still relies on the Chinese market for over 90% of its total sales, has expanded its international presence. The company has launched or announced EV factories in Hungary, Thailand, Uzbekistan, and Brazil and has invested heavily in branding and marketing outside China. Its proposed factory in Mexico would be a cornerstone of its North American strategy, offering a springboard to the U.S. and Central America. Still, the hold-up in approvals means that BYD’s momentum could be slowed, and timelines may need to be revised.

As Beijing exercises greater control over outbound capital and technology, Geely and BYD investments in Latin America are high-profile examples of the new normal facing Chinese multinational enterprises. The ambitions remain bold, but the execution will depend as much on policy consensus in China as on market opportunities abroad.

In summary, while Latin America continues to be a promising destination for EV expansion, with growing consumer demand and strategic geographic advantages, the pace at which Chinese companies can act is increasingly dictated by internal regulatory dynamics. The Geely and BYD investments in Latin America are emblematic of both the potential and the challenges of global growth in an era of shifting geopolitics and protectionist trade policies.

Uruguay has steadily emerged as a strategic location for manufacturing in Latin America. With its political stability, skilled workforce, robust infrastructure, and favorable investment climate, the country offers a compelling environment for industrial activities. For international businesses seeking a foothold in the Southern Cone, manufacturing in Uruguay presents a unique opportunity to access regional markets, benefit from government incentives, and operate in a secure, transparent, and sustainable environment. This article delves into the factors that make Uruguay an attractive destination for manufacturing, highlighting key industries, infrastructure, and policies that support this expanding sector.

Why Uruguay Is Suited for Manufacturing

Political and Economic Stability

One of Uruguay’s most significant advantages is its political and economic stability. The country is widely recognized for its strong democratic institutions, independent judiciary, and adherence to the rule of law. These attributes create a reliable environment for investors and businesses alike. Transparency International consistently ranks Uruguay as one of the least corrupt countries in Latin America, and the World Bank often highlights its good governance practices. This level of predictability is essential for long-term industrial planning and foreign direct investment, particularly in the manufacturing sector.

Strategic Geographic Location

Uruguay’s geographical position is another major asset. Between two regional giants—Brazil and Argentina—Uruguay offers direct access to the MERCOSUR trade bloc, comprising over 260 million consumers. This market access is especially beneficial for regional distribution and export-driven manufacturing companies. The country also maintains favorable trade agreements with the European Union and other global markets, making it an ideal base for international companies.

Uruguay’s modern transportation infrastructure reinforces its strategic location. Whether by land, sea, or air, goods manufactured in Uruguay can be efficiently transported across South America and beyond. The Port of Montevideo, one of the most advanced in the region, is a key gateway for international commerce.

Skilled Workforce

A central component of Uruguay’s manufacturing appeal is its highly educated and skilled workforce. The country has long emphasized quality education, including technical and vocational training programs tailored to the needs of modern industry. Workers in Uruguay are known for their professionalism, adaptability, and proficiency in languages—particularly Spanish, English, and Portuguese. This multilingual capability adds significant value for international manufacturers.

The government collaborates closely with private sector employers and academic institutions to ensure the labor force remains responsive to the evolving needs of key industries such as pharmaceuticals, technology, and logistics. As Uruguay’s manufacturing industry diversifies, the steady pipeline of qualified personnel supports business growth.

Advanced Infrastructure and Sustainable Energy

Uruguay’s infrastructure is well-suited for industrial operations. Public utility providers such as UTE (electricity), OSE (water), ANCAP (fuel and gas), and ANTEL (telecommunications) ensure consistent and reliable service for manufacturers. Furthermore, the country is a global leader in renewable energy. Over 90% of Uruguay’s electricity is derived from sustainable sources, including wind, solar, biomass, and hydroelectric power.

This commitment to clean energy supports operational reliability and aligns with modern manufacturers’ environmental sustainability goals. For companies focused on reducing their carbon footprint, manufacturing in Uruguay offers a rare combination of industrial capability and ecological responsibility.

Major Manufacturing Industries and Key Players

Pulp and Paper Industry

Uruguay has made headlines with its successful foray into the pulp and paper industry. A standout example is Finnish multinational UPM, which operates one of the most advanced pulp mills in the region at Paso de los Toros. This large-scale project demonstrates Uruguay’s ability to manage complex industrial investments and its capacity to host significant foreign direct investment. The facility is a major employer that contributes significantly to the country’s exports. 

Textile and Apparel

The textile and apparel sector remains a pillar of Uruguay’s manufacturing landscape. While traditional garment production still plays a role, the industry is evolving to include technical textiles and value-added fashion products. Manufacturers in this sector benefit from the country’s well-trained labor force and access to MERCOSUR markets, making Uruguay a competitive base for production and export.

Pharmaceuticals and Life Sciences

Uruguay’s pharmaceutical and life sciences sector is among the most sophisticated in the region. Companies like Mega Pharma have invested heavily in state-of-the-art facilities that meet international regulatory standards. The country’s strong intellectual property protections, quality infrastructure, and skilled personnel make it an attractive destination for producing pharmaceuticals, biotechnology products, and medical devices.

Food and Beverage Processing

Leveraging its strong agricultural base, Uruguay has developed a thriving food and beverage processing industry. Companies like Conaprole, one of South America’s largest dairy producers, demonstrate the country’s capacity for high-volume, high-quality food manufacturing. With increasing global demand for traceable and sustainable food sources, Uruguay’s agricultural transparency and quality controls offer a significant competitive advantage.

Infrastructure Supporting Manufacturing

Transportation Networks

Efficient transportation is vital for industrial success, and Uruguay delivers on this front. The country’s road network is modern and well-maintained, linking production sites with ports, airports, and neighboring countries. The Port of Montevideo is crucial in logistics, offering advanced cargo-handling facilities and direct shipping routes to major international markets. Additionally, Uruguay is investing in revitalizing its railway system, further enhancing connectivity for bulk and industrial goods.

Free Trade Zones (FTZs)

Uruguay hosts several strategically located Free Trade Zones, including Zonamerica, Aguada Park, and the Science Park in Canelones. These zones offer world-class infrastructure and services tailored for manufacturing and logistics operations. Companies operating within FTZs enjoy many advantages, including exemptions from corporate income tax, VAT, import and export duties, and other levies. These benefits significantly reduce operational costs and enhance global competitiveness.

Government Incentives for Manufacturers

Tax Benefits and Legal Frameworks

In addition to the advantages of Free Trade Zones, Uruguay’s broader legal and regulatory framework is favorable to industrial investment. The Investment Promotion and Export Promotion Law offers additional incentives for manufacturing, renewable energy, and technology companies. These may include income tax holidays, accelerated depreciation of fixed assets, and credit for investment-related expenses.

The government’s proactive approach to encouraging investment ensures that companies receive not only financial incentives but also institutional support throughout the investment process.

Simplified Business Structures

Uruguay allows for the establishment of simplified limited companies (SAS) to further enhance its appeal to investors and entrepreneurs. These business structures are easy to form, require minimal capital, and benefit from streamlined regulatory processes. This approach is advantageous for small and medium-sized enterprises (SMEs) looking to enter the Latin American market with manageable startup costs and bureaucratic hurdles.

Conclusion

Uruguay offers an exceptional environment for industrial development. Its political stability, strategic location, educated workforce, modern infrastructure, and forward-thinking policies position it as a premier destination for manufacturing. As global supply chains become more diversified and sustainability becomes a competitive differentiator, manufacturing in Uruguay provides businesses with both resilience and opportunity.

From multinational corporations to small and medium-sized enterprises, those seeking to establish or expand their footprint in Latin America will find Uruguay a highly accommodating and profitable base of operations. As the region continues to evolve, the strategic advantages of manufacturing in Uruguay will become increasingly apparent to investors around the globe.

President Nayib Bukele highlights Santander’s analysis and the improved U.S. travel advisory as signs of the country’s unprecedented potential.

A New Era for El Salvador Tourism

President Nayib Bukele has affirmed that El Salvador tourism is entering a historic growth phase, with the country poised to reach unprecedented highs in international arrivals and economic impact. This optimistic outlook is supported by an in-depth analysis conducted by Santander US Capital Markets, published three months ago, and bolstered by the recent improvement to the U.S. Department of State’s travel advisory for the country. Both developments strongly indicate the growing confidence in El Salvador’s transformation.

According to President Bukele, a combination of factors—especially enhanced public safety, expanded infrastructure, and heightened global interest—elevates the nation’s tourism profile. These improvements have captured the attention of investors, international tourists, and travel agencies alike, repositioning El Salvador as one of Central America’s most dynamic emerging tourism destinations.

Tourist Arrivals Surge Amid Major Safety Gains

The Santander report reveals that El Salvador welcomed 3.9 million tourists in 2024, representing a 229% increase compared to the period between 2013 and 2016. This remarkable surge puts the country ahead of several traditional regional tourism competitors, including Costa Rica, Guatemala, and Panama. While the Dominican Republic is leading in the Caribbean, El Salvador’s upward trajectory signals a promising future.

One of the central reasons behind this boom is the dramatic decline in crime. In 2015, the country recorded 6,656 homicides—a figure that dropped sharply to just 114 in 2024. This unprecedented reduction in violence has restored international confidence and helped reshape El Salvador’s global image, making it a more attractive and secure destination for visitors.

El Salvador tourism is no longer hindered by safety concerns that once dominated travel advisories and headlines. Instead, the country is now recognized for its modern approach to public security, which includes heavy investments in law enforcement, digital surveillance, and community engagement.

New Infrastructure and Niche Markets Fuel Growth

Alongside enhanced security, significant public and private infrastructure investments are propelling El Salvador’s tourism. New roads, airport upgrades, and tourism development zones have improved accessibility and travel experiences for visitors. One standout example is Surf City in La Libertad, a beachfront tourism corridor that has become emblematic of El Salvador’s rebranding efforts.

Surf City, in particular, has reported occupancy rates as high as 82%, especially in boutique hotels geared toward U.S. tourists. These establishments are designed to meet the expectations of discerning travelers seeking curated experiences, from high-end surfing adventures to ecotourism and wellness retreats.

El Salvador is also tapping into niche travel markets. Given its pioneering adoption of cryptocurrency as legal tender, the country has become a point of interest for Bitcoin enthusiasts. In addition, the diaspora market—especially Salvadorans living in the United States—continues to play a critical role. In 2023, 42% of international visitors indicated that their primary reason for traveling was to reconnect with family and friends.

Tourism as a Pillar of Economic Development

Tourism has rapidly become a pillar of national economic growth. During the first six months of 2024, the sector contributed 11% of El Salvador’s GDP, more than double the 5% contribution in Costa Rica during the same period. This rapid expansion has prompted increased demand for tourism-related services and real estate, including hotels, resorts, restaurants, and recreational facilities.

The government and private sector are working to scale up infrastructure to meet this demand. Construction projects, hotel renovations, and new commercial ventures are underway in multiple regions, including La Libertad, San Miguel, and the newly emerging ecotourism hubs in the country’s eastern departments.

According to Santander’s report, El Salvador’s tourism represents more than just a short-term boom—it is a strategic asset capable of attracting long-term foreign direct investment (FDI). The sustained inflow of tourists creates predictable revenue streams, fosters job creation, and stimulates innovation in hospitality, transport, and services. This, in turn, strengthens national income and contributes to fiscal stability.

Credit Ratings and Investor Confidence on the Rise

Another important takeaway from the Santander analysis is the potential for tourism to enhance El Salvador’s credit rating. As the economy becomes more diversified and tourism-generated revenues increase, credit agencies may view the country’s financial outlook more favorably.

A stronger credit rating would lower borrowing costs and open the door to new international financing opportunities. This would allow El Salvador to invest further in infrastructure, education, and sustainability—key components of long-term economic resilience.

Foreign investors are already taking note. Hotel chains, airlines, and tour operators have started exploring partnerships and expansions into the Salvadoran market. With modern amenities, safety assurances, and government support, the country is becoming a competitive hub for tourism-driven investment.

A Message from the President: Stay Tuned

President Bukele summed up the country’s momentum in a statement on social media:

“This analysis on the ‘tourism boom in El Salvador’ by @bancosantander was published three months ago. With the updated travel advisory from the @StateDept, unprecedented security, new infrastructure, and new destinations in development, we aim for new historic highs. Stay tuned.”

His words reflect a broader vision for El Salvador tourism as a key element of national transformation. The government’s commitment to long-term planning, safety, and international engagement has created fertile ground for sustained growth.

Looking Ahead

As El Salvador moves forward, its tourism strategy will evolve even further. Discussions are underway about promoting cultural tourism, investing in sustainability, and leveraging the country’s natural beauty—from volcanoes and rainforests to beaches and archaeological sites.

With international recognition on the rise, El Salvador tourism symbolizes the country’s renewal. From a once-overlooked destination, it is now emerging as a regional leader and a compelling case study of how comprehensive reforms can reshape an entire industry.

Mercado Libre, the leading e-commerce platform in Latin America, has announced a US$550 million investment to strengthen its presence in Chile this year.

This significant investment reflects the company’s commitment to growth in the country. It focuses on boosting logistics infrastructure, driving technological innovation, and expanding its financial services—particularly through its payment platform, Mercado Pago. In addition to improving its operations, the investment is expected to impact the Chilean labor market positively. Mercado Libre in Chile strategically leverages this capital to enhance its role as a key player in the local digital economy.

The announcement was made at an event attended by the President of the Republic, Gabriel Boric, who highlighted the importance of investment for Chile’s economic growth and the creation of new formal jobs. According to the company, the capital injection will primarily be directed toward developing new logistics capabilities, optimizing technological platforms, and launching marketing campaigns. The company also emphasized that one of its main priorities is to continue attracting and developing local talent to strengthen its team and foster innovation.

Commitment to Employment and Local Talent

One of the most significant implications of this investment will be the creation of more than 900 new formal jobs, adding to the over 2,600 employees Mercado Libre in Chile already has. These new jobs will span key areas of the company, including logistics, fintech, technology, marketing, product development, finance, and administration. With this expansion, the company expects to surpass 3,500 employees in the country, representing substantial growth in its local workforce.

According to Mercado Libre, this job creation is part of its long-term strategy to consolidate its business model and ensure its operations in Chile become increasingly efficient and competitive. In a dynamic market like e-commerce and financial services, the company understands that having a highly skilled and motivated team is essential to maintaining its regional leadership.

Boosting Technological Innovation and Logistics Infrastructure

A significant portion of the investment will also be allocated to improving the company’s logistics capabilities—an essential component of its e-commerce business. Logistics infrastructure is one of the fundamental pillars of Mercado Libre in Chile, as it ensures the efficient and timely delivery of products to consumers. With this increase in investment, the company plans to expand and optimize its network of distribution centers and strengthen its storage and transportation capacities. This also includes implementing new technologies in its logistics processes, reducing delivery times, and enhancing the customer experience.

Mercado Libre in Chile has also underscored the importance of technological innovation in its e-commerce platform and digital payments system, Mercado Pago. The company has identified Chile as a key market for developing new technological solutions, especially in the payments space, where Mercado Pago has gained notable traction. The growth of digital payments in Chile and across the region is one of the main drivers of Mercado Libre’s expansion, and the company has reaffirmed its commitment to strengthening this area. The digital payment platform will continue to evolve to offer users a safer, faster, and more convenient experience.

The relationship between Mercado Libre in Chile and the Chilean government appears stronger than ever. During his speech at the event, President Gabriel Boric emphasized the importance of this investment for the company and the country’s economic development. According to the President, the arrival of these resources is a sign that Chile can continue to grow and attract more foreign investment in key areas such as technology and e-commerce. He also highlighted the importance of creating new formal jobs, which reduces unemployment and strengthens the middle class.

The President also noted that this type of investment aligns with the Chilean government’s goals of promoting technological development, innovation, and financial inclusion. In particular, Boric praised the growth of Mercado Pago and its contribution to providing millions of Chileans with access to financial services that would otherwise be inaccessible to many people, especially in rural areas or among segments of the population without access to traditional banking services.

Challenges and Opportunities in E-Commerce in Chile

Chile has traditionally been one of the most advanced countries in Latin America regarding e-commerce adoption. The country has experienced rapid growth in this sector in recent years, primarily driven by the pandemic, accelerating digitalization across all industries. However, despite this progress, there are still challenges that e-commerce companies must overcome, such as intense competition, high logistics costs, and the constant need for innovation to meet consumer expectations.

Mercado Libre in Chile, the regional e-commerce leader, is well positioned to seize this environment’s opportunities, though it is not immune to challenges. Expanding its infrastructure and strengthening its workforce are key steps in remaining competitive and leading the sector. The announced investment indicates that the company is committed to staying at the forefront in an increasingly dynamic and competitive market.

The US$550 million investment announced by Mercado Libre for 2025 reflects the company’s commitment to growth and strengthening its operations in Chile. This capital injection will benefit the company and positively impact employment, technological innovation, and the development of e-commerce in the country. By creating over 900 new formal jobs and continuing to invest in its logistics infrastructure and payment platform, Mercado Libre in Chile reaffirms its regional leadership and contributes to Chile’s economic growth.

As e-commerce continues to evolve and digitalization accelerates, companies like Mercado Libre will play a fundamental role in transforming the digital economy in Latin America. With the implementation of these new investments and the strengthening of its presence in the Chilean market, Mercado Libre is preparing to continue growing and expanding its operations while continuing to innovate to meet the ever-changing needs of consumers.