Slight Increase in Foreign Investment Expected

Although a 3% increase in Foreign Direct Investment flows to Honduras is projected for 2019, this increase would be determined by reinvestments of companies already installed in the country, and not by the arrival of new capital.

Thursday, June 6, 2019

According to data from the Central Bank of Honduras, in recent years in the country the flow of Foreign Direct Investment (FDI) has ranged between $1,000 and $1,250 million. But by 2019, FDI is expected to reach $1.3 million, up 3% from the $1.228 million reported in 2018.

You may be interested "Central America: Foreign Direct Investment Up 10%

Alejandro Aronne, an economic research specialist at the National Investment Council, explained to Elheraldo.hn that they observe "... a stagnation, despite the fact that $1.228 million dollars are registered at the end of 2018, most of it is the investment of profits. What is needed is new capital."

Jacqueline Foglia, director of CNI, said that "... Generally speaking, it can be said that (the business climate) is good, not very good or excellent. However, situations of political instability and social upheaval continue to affect the image."

Also see "Protests and Vandalism in Honduras

Complaints about costs, lack of clarity of rules, high taxes, and political and social issues are other factors influencing new investments not to enter the country.

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