Competitiveness

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.