Evaluating the market in Honduras

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Business environment in Honduras

A deceleration in remittance growth and rising imports will see Honduras’ current account deficit widen in 2018 and 2019. Nonetheless, foreign direct investment and aid from both bilateral and multilateral partners, such as the U.S. and the Inter-American Development Bank, will be enough to cover the deficit. International reserves reached approximately five months of import cover. This will provide the Banco Central de Honduras with a backstop in the event of balance of payments shock. According to the IMF, sustained anti-corruption efforts must continue to enhance the rule of law, which is a key determinant for both domestic and foreign investment in Honduras.



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