The Republic of Honduras has an enviable location in Central America and has maintained economic growth over the last few years, fortified by the inflow of foreign investment and family remittances. Honduras is heavily dependent on agricultural products such as bananas, coffee, and sugar for its foreign exchange earnings.
A member of the WTO, Honduras has signed 12 trade agreements, giving preferential treatment to more than 40 trade partners, the largest of which are the United States, Central American countries and the EU (in particular Germany). There are also 11 bilateral investment treaties which support the protection and promotion of investment with commercial partners.
The government has been developing strategies to increase employment, open markets and attract foreign investment, and has established a National Investment Council to take advantage of the country’s opportunities; its strategic location with access to both coasts, its growing industrial base, its young population, and a desire to diversify exports. The Council focuses on six priority sectors; tourism, textile and clothing, light manufacturing, outsourcing services, agribusiness and social housing.
Honduras ranks 133/190 on the World Bank’s Ease of Doing Business. Investments face various challenges, but the country has assets that attract foreign investors including good levels of productivity, decentralisation, privatisation of many sectors, and establishment of Free Trade Zones (ZOLI).