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Subject

Outlook for the government of President Juan Orlando Hernandez.

Significance

On November 7, in a move that opposition figures claim is unconstitutional, President Juan Orlando Hernandez announced his intention to run for re-election in 2017. The announcement follows allegations relating to Hernandez's brother, that have highlighted links between senior figures in public life and a leading drug cartel. This risks undermining relations with the United States, and compounds controversy over the president's re-election bid.

Impacts

Hernandez may succeed in distancing himself from allegations of Cartel del Atlantico influence in public life.

Presidential re-election may well be in the interests of a range of political actors.

Increased government spending will drive higher growth in the run-up to next year's election.

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