Economic and Financial Reform in Honduras: Challenges and Opportunities to 2025

Abstract

This paper reviews Honduras’s vital statistics and recent economic and political events that impact the economy. Honduras, the poorest country in Central America with almost two-thirds of the population living in poverty, has the highest level of income inequality in Latin America. In addition to being vulnerable to external shocks that include acts of nature, the country faces major challenges regarding crime, violence, and endemic corruption. Using a framework that assesses the performance of a national economy that participates in today’s globalized world, I identify the strengths and weaknesses of Honduras towards the end of enhancing the future performance of its economy.