Competitiveness

The Economic Development Ministry released a base document for Honduras's new industrial policy, developed through consultation with 671 participants and 323 institutions and companies, aimed at modernizing production, improving competitiveness, and creating jobs.

The World Bank's vice president for Latin America, Susana Cordeiro Guerra, met with Central Bank President Roberto Lagos in Bangkok and confirmed plans to visit Honduras in mid-November to advance economic reforms and competitiveness measures.

Although the Central Bank reported a strong rebound in foreign investment to $468.3 million in the second quarter of 2026, economists warn that most flows are reinvestment by existing companies rather than new capital, reflecting Honduras's weak regional competitiveness.

The Central Bank's Global Real Exchange Rate Index fell 1.32% year-over-year in August, indicating Honduran exports maintain improved price competitiveness against major trading partners.

Honduras suffers over 165 hours of blackouts yearly—versus fewer than 9 in El Salvador—costing businesses more than $100 million annually, and analysts warn the new Energy Justice Law's impact depends on institutional capacity to implement it.

A new CEPAL report shows Latin America received $194.2 billion in foreign investment in 2025, but Honduras failed to rank among the region's top destinations while Brazil, Mexico, and Costa Rica captured most flows as global supply chains shift.

COHEP's July 2026 regional competitiveness bulletin projects 3.4% economic growth in 2026 backed by remittances, but flags Honduras ranking 95th globally in economic freedom, 119th in innovation among 139 countries, and third worldwide in climate vulnerability.

Analyst Luis Cruz attributes Honduras's lowest investment percentage in Central America to weak legal protections and investor uncertainty, arguing that strengthening the legal framework and offering greater certainty to investors are key to attracting capital and creating jobs.

Salomón Ordóñez, the former head of state utility ENEE, says Honduras faces losing competitiveness in Central America unless it tackles two decades of governance failures in its electricity system, citing Guatemala and El Salvador's successful power-sector overhauls.

The Honduran private sector, through FEDECAMARA, has presented President Nasry Juan Asfura with a nine-point policy agenda covering administrative simplification and workforce development, aimed at improving the country's investment climate and decentralizing economic growth.

Engineer Salomón Ordoñez warned that a 12.48% increase in electricity tariffs will raise living costs and dampen foreign investment, urging transparent bidding and cuts to power-system losses to stabilize rates.