The economic forecast for Honduras in 2025 encounters major obstacles, marked by a notable rise in unemployment and a substantial decrease in foreign direct investment (FDI). These circumstances denote a scenario of political and economic unpredictability that influences both the job market and investor trust, affecting the nation’s growth and stability.
The rise in the jobless rate and the drop in foreign direct investment underscore structural challenges needing urgent intervention. This scenario necessitates enacting strategies to encourage the creation of formal employment and enhance the investment climate to support enduring economic development and lessen the susceptibility of groups including youth and women.
Increasing joblessness and labor environment in Honduras
According to the Honduran Private Business Council (COHEP), the jobless rate rose to 7.2% by the close of 2024, highlighting an escalation in the employment crisis. This situation predominantly impacts women and youth, who encounter more challenges in finding formal and stable employment. Additionally, over 1.6 million individuals are impacted by underemployment, revealing that a substantial segment of the population is engaged in work that falls short of fulfilling their financial requirements.
Furthermore, close to a million young individuals encounter obstacles when trying to access the formal job market, which restricts their chances for career growth. Informal jobs remain a significant issue, as 37% of the workforce aged 15-29 is engaged in informal employment, indicating job instability 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.
Decrease in overseas investment and financial forecast
In 2024, Honduras experienced a decrease in foreign direct investment. By September of that year, FDI reached $590.7 million, marking a drop of $172.5 million compared to the same period the year before. This reduction indicates a climate that creates uncertainty for investors, impacting the influx of capital needed for economic growth.
The 2025 Global Opportunity Index (GOI) by the Milken Institute places Honduras at the bottom of the list in Latin America regarding investment appeal, highlighting the necessity to enhance areas like legal certainty, infrastructure, and political stability. The decrease in FDI hampers the funding of productive projects and crucial infrastructure for development.
Therefore, the increase in unemployment and the decrease in foreign direct investment in Honduras over the years 2024 and 2025 illustrate a situation of uncertainty impacting both economic and social stability. Implementing comprehensive and coordinated policies will be essential for enhancing the nation’s economic and job outlook.
To change this scenario, it is seen as crucial to put in place measures that boost investor trust, enhance infrastructure, and enhance security. A joint effort by the government, the business sector, and civil organizations is vital to tackling ongoing economic and employment issues and encouraging more robust and fair development.
