Browse Honduras Daily Stories

President Nasry Asfura met with executives from Italian munitions maker Fiocchi to discuss establishing a manufacturing plant in Honduras that would supply both the domestic and Latin American defense and civilian markets.

Economist Rubén Darío Sorto warns that Honduras's diplomatic switch to mainland China has disrupted retail trade, calling the resulting shift in the trade balance with China 'brutal' for the Honduran economy.

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.

Honduras is negotiating with Brazilian company Be8 on a soya and biodiesel project that could span 200,000 hectares and create 100,000 rural jobs while reducing reliance on imported soya meal and fuel.

Brazilian investors are analyzing the feasibility of commercial soy production and construction of a biodiesel plant in Honduras, potentially adding an agricultural processing sector to the country's economy.

US power companies have expressed interest in investing in Honduras's energy sector following the September enactment of the Energy Justice Law, the government says.

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.

A joint study by Mexico's Monterrey Tech and Sendas finds that Honduras's three decades of sluggish growth stem from poor infrastructure, weak rule of law, and violence deterring foreign and domestic investment, while remittances (30% of GDP) sustain consumption but fail to boost productive capacity.

International banks and investors are showing interest in Honduras's electricity sector following approval of the Energy Justice Law, which establishes competitive bidding and auctions; the government estimates the sector needs about $6 billion in investment to modernize infrastructure and expand coverage.

Honduras's new Energy Justice Law, approved by Congress in August, has drawn interest from international financial institutions and investors who see it as a signal of transparent investment rules and modernization, with the government estimating the sector needs about $6 billion to upgrade infrastructure and expand coverage.

Following passage of the Energy Justice Law, approximately 10 companies are planning new investments in Honduras, including a $400 million light manufacturing project in Choloma, with officials citing energy-sector reforms as a key enabler for business confidence.

Foreign direct investment in Honduras represents less than 1% of GDP—about $223 million last quarter—while remittances account for roughly 27% of GDP, prompting business leaders to urge steps to attract capital and create formal jobs.

The U.S. State Department said it welcomes Honduras's passage of the Energy Justice Law, noting that American companies are interested in investing in the country's energy sector to improve reliability and create jobs.

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.

Honduras's maquiladora industry is launching a strategy to attract foreign investment and open new industrial parks, banking on tariff relief for Central American textiles to US markets and a joint effort with government to improve the country's investor perception.

Economic Development Minister Eddy Ordóñez said the government is shifting from steep fines to warnings and guidance for small businesses, has conducted over 1,500 compliance trainings, and expects to announce a manufacturing-sector expansion creating more than 1,600 jobs.

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.

Congress began briefing all five political caucuses and mayors' associations on a proposed investment law designed to attract capital for hospitals, ports, infrastructure, and other projects by guaranteeing legal security and property rights.

Honduras deposited its ratification of the ICSID convention on July 17, becoming the 159th state to join the World Bank dispute-settlement mechanism for foreign-investment disputes, effective August 16.

Experts debated Honduras's urgent need for electricity-sector reform, warning that failure to reach consensus by July will worsen blackouts, increase public debt, and deter foreign investment, as lawmakers disagree over whether new utilities should remain state-owned or allow private investment.

Honduras's Opportunity Electricity Market (MEO), created in 2019, is drawing fresh investment in power generation; by May 2026 it supplied 16.62% of national production through 39 plants, though faster payments to generators have increased Enee's purchase costs.

Amparo Canales, former president of Honduras's College of Economists, says energy reforms will require foreign investment and must avoid politicization, while improving the state power company ENEE's efficiency and protecting its assets from privatization.

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.

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.

Honduras's net international investment position stood at minus $11.23 billion in the first quarter of 2026, an improvement of $1.27 billion from the end of 2025 as the country reduced its net debtor position.

Mario Hung, representing Honduras's Chinese Descendants Association, defended Asian-owned businesses operating in Honduras as legal and tax-compliant, countering a recent Congressional motion to supervise and regulate them.

German business leaders met with President Nasry Asfura and Foreign Minister Mireya Agüero, announcing plans for an official visit to Honduras within 12 months to explore closer economic ties and potential investments.

The Chamber of Commerce and Industry of Cortés warned that international companies have suspended investment plans in Honduras pending the outcome of U.S. tariff negotiations, citing concern that a 10% tariff and potential further restrictions could push capital to competing Central American countries and hurt the manufacturing and job sectors.

Honduras's private-sector council president said a 10% U.S. tariff on Honduran goods raises export costs, undercuts competitiveness, and discourages foreign investment—including from European firms—and is pushing the government to negotiate tariff reduction or elimination.

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.