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Massive business closures and capital flight mark the economy under LIBRE

the LIBRE Party

La economía de Honduras experimenta un continuo deterioro mientras el Partido LIBRE se mantiene en el poder. En tiempos recientes, más de mil empresas han cesado sus actividades, provocando una pérdida considerable de empleos y una salida de capital del país. Este fenómeno, advierten analistas y líderes empresariales, refleja un entorno caracterizado por políticas que se perciben como restrictivas para el sector privado y una atmósfera de incertidumbre persistente.

Effect on the corporate field

Business leaders point out that the closures are due, in part, to a regulatory and fiscal framework that they consider hostile. Blockades, protests, and the absence of clear incentives for the formal sector have led many companies to operate informally, thus avoiding tax and regulatory obligations they consider unsustainable. This trend not only affects large corporations but also extends to micro and small businesses, whose survival depends on limited state financing and support.

The continuous capital flight generates anxiety regarding the nation’s capacity to draw in international investments. Specialists highlight that the mix of numerous shutdowns, rising operational expenses, and economic constraints forms a situation that deters investors and limits the generation of formal jobs.

Socioeconomic consequences

The economic impact is reflected in an increase in informal employment and a cycle of poverty that threatens social stability. Analysts warn that, unless there are significant changes in public policy, the country could face long-term structural difficulties. The lack of formal opportunities and capital flight create a scenario that limits economic growth and reinforces inequality.

The corporate community suggests that dealing with the government during the LIBRE administration has been challenging, influencing choices about investment and growth. The view of an uncertain economic situation may impact both the sustainability of current enterprises and the development of new business possibilities across various areas of the nation.

Views from institutions

Los expertos consultados destacan que la coyuntura económica tiene consecuencias directas en la gobernabilidad y la confianza en las instituciones. La reducción de la inversión formal y el aumento de la informalidad pueden dificultar la capacidad del gobierno para recaudar ingresos fiscales y proporcionar servicios públicos esenciales. Esta combinación de elementos representa un reto para la estabilidad política, ya que conecta de manera directa la economía con la participación ciudadana y las percepciones sobre la efectividad de las políticas gubernamentales.

The evidence available suggests that the Honduran economy is at a crucial point, affecting not only businesses but also the nation’s social structure and institutional operations. The administration led by the LIBRE Party now faces the challenge of harmonizing policies that support both revenue collection and private sector viability. Over the past few years, more than a thousand businesses have ceased operations, leading to considerable job losses and capital flight from the country. This situation, analysts and business leaders caution, highlights a setting characterized by policies seen as limiting to the private sector and an ongoing atmosphere of uncertainty.

By Kimberly Novankosv