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The financial projection for Honduras in 2025 encounters substantial hurdles, marked by a significant rise in joblessness and a sharp decline in foreign direct investment (FDI). These situations signify an atmosphere of political and economic unpredictability, influencing both employment opportunities and investor trust, thereby affecting the nation’s growth and steadiness.
The rise in the unemployment rate and the drop in FDI emphasize structural issues that need urgent attention. The scenario demands the adoption of policies that encourage the creation of formal employment and enhance the investment climate to support sustainable economic development and lessen the vulnerability of groups such as youth and women.
Rising unemployment and working conditions in Honduras
The Honduran Council of Private Enterprise (COHEP) reported that by the close of 2024, the unemployment rate had climbed to 7.2%, exacerbating the employment crisis. This situation particularly impacts women and youth, who encounter more challenges in securing formal and steady employment. Additionally, over 1.6 million individuals experience underemployment, highlighting that a large segment of the population works in situations that fail to satisfy their financial requirements.
Moreover, close to a million young individuals encounter obstacles when trying to access the official job market, which restricts their possibilities for career advancement. Informal employment remains a consistent issue, as 37% of workers aged 15-29 are in informal jobs, highlighting instability in employment and the absence of social benefits.
These conditions not only affect workers’ quality of life, but also limit economic growth and the country’s ability to attract investment. Job insecurity and market uncertainty can hinder economic recovery and poverty reduction.
Decline in foreign investment and economic outlook
During 2024, foreign direct investment in Honduras showed a downward trend. As of September of that year, FDI stood at $590.7 million, representing a reduction of $172.5 million compared to the same period in the previous year. This decline reflects an environment that generates uncertainty among investors, affecting the inflow of capital necessary for economic development.
The Milken Institute’s 2025 Global Opportunity Index (GOI) ranks Honduras last in Latin America in terms of investment attraction, underscoring the need to improve aspects such as legal certainty, infrastructure, and political stability. The reduction in FDI limits the financing of productive projects and infrastructure essential for growth.
Therefore, the increase in unemployment and the decline in foreign direct investment in Honduras over 2024 and 2025 indicate an uncertain environment impacting both economic and social stability. Implementing integrated and cohesive strategies will be essential for enhancing the country’s economic and employment outlook.
To change this scenario, it is seen as crucial to establish strategies that boost investor trust, enhance infrastructure, and ensure safety. Cooperation among the government, businesses, and civil society is vital to tackle present economic and employment issues and encourage stronger and fairer growth.