Business Closures

More than 1,400 formal businesses have shut down and registered with Honduras's tax authority (SAR) since 2022, with 200 closures occurring so far this year, concentrated in Francisco Morazán, Cortés, and Comayagua departments.

Honduras's part-time employment law, which promised to generate opportunities since March 2026, has produced only 206 contracts across 43 companies, while restaurants and small businesses across the country announce closures, blamed partly on rising electricity costs.

The private-sector council COHEP warns that rising fuel, energy, and input costs are accelerating company closures, with about 80% of microenterprises failing within five years and leadership transitions adding further risk.