However, towards the end of 2022, economic activity started to moderate as that of trading partners such as the United States slowed, reducing demand for Honduran exports. The country now faces a less supportive external environment, affected by the war in Ukraine, tightening financial conditions and adverse weather.
Private-sector credit is expected to become one of the main factors supporting growth this year.
Corruption, gang violence and inadequate infrastructure will limit the potential for substantial medium-term growth.
A free trade agreement with China would attract substantial investment and have a positive impact on growth prospects.
Divergence between Liberty and Refoundation and the Honduras Saviour Party will hit the government’s ability to pass reforms in Congress.
