In Bluefields, a Nicaraguan city of 45,000 inhabitants were directly in the storm's path.
"We're ready to run or stay put," one resident, Dolene Miller, told AFP yesterday by telephone.
"I'm expecting it won't hit Bluefields directly... But it's worrying that it's stationary because it's growing bigger and taking up a lot of water and has become unpredictable -- it could go in any direction," a shopkeeper, Elmer Jackson, said.
Tropical Storm Otto, lumbering in slowly from the Caribbean, was regaining strength, after briefly losing a little force earlier yesterday.
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It has already proved deadly in Panama, where on Tuesday its outer band of rains and wind caused a mud slide that killed two people and brought down a tree that crushed a nine-year-old boy in a car in the capital.
A search was underway for three people who went missing in a small boat, Jose Laniado, operations chief for Panama's National Air and Naval Service, told media. Another person was feared swept away by a river.
But the situation there was not projected to be much better.
Costa Rican officials have ordered the evacuation of more than 4,000 people along the sparsely inhabited northern half of its Caribbean coast. But some were defiantly staying.
"Some people don't want to leave their homes, leave all their possessions, their animals," police officer Christian Rodriguez told the Costa Rican newspaper La Nacion in the village of Batan, close to the Caribbean port city of Limon.
One woman who did evacuate her home near the village of Barra del Colorado, Teresa Romero, 52, told AFP that around 10 men had refused to leave. She was taking shelter with neighbors in a church near the inland capital of San Jose.
The high winds and heavy rains could devastate crops -- a big blow especially in Nicaragua, one of the poorest countries in Latin America.
Otto "could seriously jeopardize food security for small-holder farmers who rely on maize, beans, cocoa, honey, coffee and livestock for their livelihoods" in Nicaragua, Jennifer Zapata, a regional director for Heifer International, a US-based poverty-fighting charity, said in a statement.