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In recent years, international investment in Honduras has decreased notably, mirroring an atmosphere of political and economic unpredictability that is impacting the trust of global investors. Data from the Central Bank of Honduras (BCH) shows that by the close of the third quarter of 2024, international investment amounted to US$590.7 million, indicating a drop of US$172.5 million compared to the same time frame the previous year. This reduction is linked to issues like unstable legal conditions, corruption, and political unrest, which have fostered a challenging environment for foreign capital influx.
La Universidad Nacional Autónoma de Honduras (UNAH) ha alertado sobre un desafiante panorama económico para 2025 y 2026, señalando que factores tanto nacionales como internacionales podrían complicar aún más la atracción de inversión. En especial, la incertidumbre política, incrementada durante un año electoral, es considerada un factor clave en la reducción de la IED. Los expertos destacan que la polarización política y la desconfianza en el proceso electoral podrían seguir impactando negativamente en la inversión extranjera en el país.
Infrastructure challenges and financial projections
Studies from the Institute for Economic and Social Research (IIES) at UNAH indicate that the labor market’s competitiveness suffers due to limitations in skills and abilities, which diminishes the nation’s appeal to investors. Moreover, maintaining institutional stability and enhancing public safety remain significant challenges that need to be tackled to boost the investment environment.
At the sectoral tier, the financial and insurance sectors dominate with the majority of international capital flows, totaling US$383.9 million and representing 65% of the overall amount documented. The manufacturing field follows with US$119.8 million. Regarding the sources of investment, the leading countries contributing to Honduras are Colombia, Mexico, Bermuda, Panama, and Belgium.
Though there has been a reduction in foreign direct investment, the Central Bank indicates that there has been an economic increase of 4.1% from January to October 2024, primarily fueled by local expenditure and private investment. The BCH’s Monetary Program anticipates growth ranging from 3.5% to 4.5% for both 2024 and 2025, while maintaining inflation between 4% and 5%. Nevertheless, specialists and business executives concur that to maintain this growth, it is crucial to establish a more inviting climate for investment, comprising structural adjustments, improved clarity, and legal stability.
The drop in overseas direct investment in Honduras not only indicates a period of political instability but also underscores the fundamental obstacles that the nation needs to address to maintain its financial stability. The country’s economic prospects will heavily rely on the capacity to fortify institutions, assure a secure and clear environment, and restore investor trust. In an election context that brings additional complexities, the challenge will be to turn these difficulties into chances to foster sustainable growth and draw the international capital essential for national progress.
