A. M. 
In an environment marked by technological disruptions, regulatory challenges, and a growing focus on ESG aspects, companies in Central America and the Dominican Republic are optimistic and focused on innovation. According to the study “Regional and Business Outlook 2026: Central America and the Dominican Republic. Strategies to Boost Innovation in a Challenging Environment”, the most relevant challenges for maintaining competitiveness in the region are attracting domestic and foreign investment (60%), implementing public policies that promote private investment (44%), and ensuring the sustainability of public finances (42%).
The report, prepared by KPMG Mexico, a multidisciplinary firm that provides professional services in Audit, Tax and Advisory, reflects a favorable outlook, highlighting that 89% of Senior Management in the region expect an increase in sales in their company: 74% project growth of between 1% and 10%, and 15% anticipate increases of between 11% and 20%, reflecting confidence in a positive economic environment.
Regarding this, Luis Laguerre, managing partner of KPMG Panama, said: “Considering that 89% of organizations project sales growth by 2026, we can see clear signs of confidence in the region. This optimism confirms that, even in a challenging environment, Central America and the Dominican Republic have the capacity to adapt and thrive”.
In tax matters, companies highlight several factors that affect their ability to comply. The complexity and administrative burden of fulfilling tax obligations on time and in the correct manner is a challenge for 57%, followed by the execution of audit processes by the authorities (39%) and limitations in the technical capabilities of the tax department staff (29%). Likewise, 43% cite local or global regulatory changes as the greatest tax risk, while 19% identify the lack of automation in tax processes as such.
Strategy and business leadership
Attracting and retaining talent is one of the most significant challenges for companies in Central America and the Dominican Republic, according to 45% of them. To address this, they consider it essential to offer competitive proposals that include attractive compensation packages, flexible work models, and training programs. In addition, 49% plan to focus on cost and expense control; 48% anticipate expanding their portfolio of products and services; and 46% seek to digitize their processes to strengthen their resilience and competitiveness.
Nearshoring and Geographic Expansion
Attitudes toward nearshoring are diverse: 35% do not consider it an essential part of their strategy; 30% seek to workflow optimizations to capitalize on opportunities related to this trend; and 29% intend to strengthen the technical capabilities of their workforce. In this context, 39% plan to expand their presence nationally, while 24% anticipate doing so globally.
The main reason for national expansion is the opening of new markets, cited by 65% of the sample. Among those planning global expansion, 81% would do so to access new markets; 47%, to establish strategic alliances; and 40%, due to strategic location. This approach demonstrates organizations’ interest in capitalizing on nearshoring opportunities and diversifying risks.
Innovation and technology
Innovation and technology are positioned as strategic pillars for 2026: 62% of companies plan to invest significantly in their implementation, with an emphasis on data analytics, while 56% would invest in cloud solutions, and 54% in applications. Artificial intelligence (AI) is also gaining relevance: 62% plan to use it to improve customer experience; 50%, to reduce lead times and increase operational efficiency; and 33%, to optimize costs.
However, the maturity of innovation processes varies considerably: only 15% of companies are at a mature stage focused on continuous improvement, while 18% operate at an initial, reactive level in the face of market disruptions. This reveals a significant opportunity to evolve toward more comprehensive innovation and digital transformation strategies.
Main short- and long-term risks
By 2026, organizations in Central America and the Dominican Republic have identified critical risks that could affect their operations in the short term, including cyberattacks (61%), the risk of fraud and theft (46%), and difficulty attracting or retaining key talent (42%). Long-term risks include the impact of AI on processes (49%), regulatory risk associated with new regulations (43%), and lagging innovation and digital transformation (38%), all of which underscores the need to design proactive strategies to ensure operational continuity.
In this context, Mario Torres, managing partner of KPMG Dominican Republic, comments: “Cybersecurity has become a critical priority. Today, 61% of companies identify cyberattacks as their main concern, reminding us that technological protection is not optional, but essential to ensure business continuity and market confidence”,
ESG issues
Organizations still face significant challenges in consolidating their environmental, social, and governance (ESG) strategies: 36% only address some ESG aspects, while 34% already have a comprehensive and mature implementation.
Regarding environmental risks, companies in the region consider extreme weather events, energy availability and security, and lack of access to clean and renewable energy sources to be high priorities (33% in all cases). Another 32% highlight the inadequate management of environmental impacts, such as waste management, energy, and emissions.
In the social sphere, the main risks are attracting and retaining talent (62%) and strengthening the health, safety, and well-being of staff (56%).
Regarding governance, 65% emphasize the importance of complying with new regulatory provisions and ensuring ethical transparency, which reinforces the need to integrate sustainability into business strategy.
Mynor Pacheco, managing partner of KPMG Costa Rica, concludes: “Talent is the engine of transformation. By 2026, attracting and retaining the right people will be crucial to strengthening competitiveness and innovation in the region. It’s not just about filling positions, but about developing capabilities that drive resilience and sustainable growth”.
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