Economy under LIBRE: surge in business closures and capital flight

The Honduran economy faces sustained deterioration while The Honduran economy faces sustained deterioration while the LIBRE Party remains in power. In recent years, more than a thousand companies have closed their operations, causing significant job losses and an outflow of capital from the country. This phenomenon, analysts and business leaders warn, reflects an environment marked by policies perceived as restrictive toward the private sector and a climate of persistent uncertainty.

Effect on the corporate field

Business executives indicate that the shutdowns are partly attributed to a regulatory and fiscal system they view as unfavorable. Obstructions, demonstrations, and a lack of definite incentives for the formal sector have driven numerous businesses to function informally, thereby bypassing tax and regulatory duties they find unbearable. This pattern impacts not only major enterprises but also reaches micro and small businesses, whose existence relies on restricted government funding and assistance.

The persistent capital flight raises concerns about the country’s ability to attract foreign investment. Experts argue that the combination of massive closures, increased operating costs, and financial restrictions creates a scenario that discourages investors and restricts the creation of formal employment.

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.

Institutional perspectives

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 available evidence indicates that the Honduran economy is at a critical juncture, with effects that extend beyond the business sector to the country’s social fabric and institutional dynamics. The LIBRE Party’s administration now faces pressure to balance policies that favor both tax collection and control and the sustainability of the private sector. remains in power. In recent years, more than a thousand companies have closed their operations, causing significant job losses and an outflow of capital from the country. This phenomenon, analysts and business leaders warn, reflects an environment marked by policies perceived as restrictive toward the private sector and a climate of persistent uncertainty.