Investment Climate

Honduras's country risk fell to 1.46%, its lowest in more than a decade, though analysts warn that converting the improved financial indicator into private investment and better living conditions remains a major challenge.

Cohep president Anabel Gallardo said legal and economic uncertainty is a major barrier to attracting investment and formal employment, citing losses in the power sector, flaws in part-time labor law, and the need for job creation to retain Hondurans rather than rely on migration and remittances.

President Asfura announced investment in Puerto Henecán and highlighted Honduras's formal return to the international investment arbitration center (CIADI) as a signal of legal stability and confidence for private capital.

Honduras will rejoin the International Centre for Settlement of Investment Disputes (CIADI), a World Bank affiliate, on August 16 after nearly two years of withdrawal, seeking to strengthen investor confidence and legal certainty.

Qarim Qubain, president of the Cortés Chamber of Commerce and Industry, says Congress needs more time to build consensus on controversial energy reforms, warning that prolonged electricity costs are driving away business investment.

The president of the Cortés Chamber of Commerce warns that crime and weak rule of law are deterring both foreign and domestic companies from investing, expanding operations, and creating jobs in Honduras.

A JP Morgan Chase report ranks Honduras among Latin America's lowest-risk countries for investment, but economists say Honduras must improve public services and compete for capital to capitalize on the rating.

Moody's confirmed Honduras's B1 sovereign credit rating with a stable outlook for the next 12 months, but warned that crime, political polarization, and weak institutions threaten the economy, while remittances remain a crucial economic pillar despite stricter US migration policies.

Karim Qubain, president of the Honduran Chamber of Commerce and Industry (CCIC), warned that ongoing land invasions in rural and urban areas undermine legal security and discourage job-creating investment, calling on the government to expand social programs and job opportunities.

Honduras's private-sector council COHEP met with the Environment Ministry (SERNA) secretary and agreed on concrete steps to streamline environmental licensing, which business leaders say is currently blocking investment in the country.

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.