Browse Honduras Daily Stories

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 US Embassy welcomes the Asfura administration's push to reform Honduras's electricity law, saying the changes would attract US investment, boost economic growth, strengthen energy security, and improve reliable and affordable power access for Hondurans.

The European Investment Bank has offered up to 15 billion lempiras (roughly $600 million) to finance Honduras's transmission networks and renewable energy, EU Ambassador Gonzalo Fournier announced at a meeting with Congress leaders.

Over 14,100 manzanas of land in coastal Cortés and Atlántida are disputed by invasions that advocacy groups say cost the economy roughly $15 million a month and deter foreign investment.

A delegation linked to Bahrain's royal family is evaluating investments in Honduras worth $1–2 billion, focusing on pharmaceutical manufacturing, hospital modernization, independent fuel production, and digital connectivity infrastructure.

The National Logistics Council and National Investment Council signed an agreement under President Nasry Asfura's administration to attract foreign and domestic investment in logistics, trade, and industry, with a goal of creating more than 100,000 formal jobs, backed in part by a 600-million-lempira (about $24 million) expansion of Puerto Cortés's bulk terminal.

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.

The Latin American Development Bank (CAF) endorsed Honduras's proposed electricity-sector reform, saying it would modernize the energy system, attract foreign investment, and improve service quality while offering support for implementation.

Representatives of corporations linked to Bahrain's royal family visited Honduras to explore up to $2 billion in projects spanning a pharmaceutical plant, oil refinery, and e-visa system, potentially creating 1,000 jobs in the initial phase.