Business Climate

A U.S. State Department report finds Honduras has investment advantages—proximity to the United States, CAFTA-DR trade access, and over 200 American companies operating there—but says high electricity costs, logistics gaps, corruption, and legal uncertainty continue to deter expansion.

Foreign direct investment in Honduras fell 27% in the first quarter of 2026 compared with the same period a year earlier, declining to $213 million from $292 million, a loss economists and business leaders attribute partly to weak global conditions and partly to Honduras's competitive disadvantage versus regional peers.

Juliette Handal, former president of Honduras's main business council (Cohep), attributed a first-quarter decline in investment to security concerns, including gang violence and massacres, rising energy costs (set to jump 12%), and international supply-chain disruptions, all of which she said undermine investor confidence.