Why invest in the Honduran economy?
Honduras’ legal obligations guarantee national treatment and most favored nation treatment for U.S. investments in most sectors of the Honduran economy and include enhanced benefits in the areas of insurance and arbitration for domestic and foreign investors. CAFTA-DR has equal status with the constitution in most sectors of the Honduran economy.
What export subsidies does the Honduran government provide?
The Honduran government does not provide direct export subsidies, but does offer tax exemptions to firms operating in a free trade zone.
What are the biggest industries in Honduras?
The economy of present-day Honduras relies heavily on the natural resources which include arable land and minerals, and some of the leading industries in the state include agriculture, mining, and the textile industry.
Can the Honduran government force foreign investors to turn over data?
However, the Honduran government and courts can require foreign and domestic investors that operate in Honduras to turn over data for use in criminal investigations or civil proceedings. Honduran law enforcement, prosecutors, and civil courts have the authority to make such requests.
What major industries does Honduras have?
Honduras: EconomyEconomic TriviaHonduras has had one of the highest economic growth rates in Latin America over the past few years.Top IndustriesSugar; Coffee; Woven and Knit Apparel; Wood Products1 more row
What are the 3 major industries of Honduras?
What Are The Biggest Industries In Honduras?Agriculture. Agriculture is one of the main industries in Honduras since it contributed 14% of the country's GDP in 2013. ... The Fishing Industry. ... Textile Industry.
What are some of the issues facing Honduras?
Gang violence and organized crime are leading causes of displacement from Honduras. While homicide rates have dropped in recent years, Honduras is still the most dangerous country in the region, with 38 homicides per 100,000 people.
What kind of economic system does Honduras use?
Honduras has a mixed economic system which includes a variety of emerging private freedom, combined with centralized economic planning and government regulation.
Who does Honduras trade with the most?
the United StatesHonduras' exports mainly agricultural products such as coffee and bananas. Other exports include: shrimp, lobster, olive oil and clothes. Honduras' main export partner is the United States with 41 percent of total exports. Others include: Mexico, Canada, Guatemala, El Salvador and the European Union.
Who does Honduras trade with?
In 2019, Honduras major trading partner countries for exports were United States, Unspecified, Germany, El Salvador and Nicaragua and for imports they were United States, China, Mexico, Guatemala and El Salvador.
Is Honduras the poorest country?
Honduras remains one of the poorest and most unequal countries in the Western Hemisphere. Prior to the twin shocks of 2020, 25.2 percent of the Honduran population lived in extreme poverty and almost half (4.4 million people) lived in poverty, based on the official poverty lines.
How do you pronounce Honduras in English?
0:010:52How to Pronounce Honduras? (CORRECTLY) Spanish & English ...YouTubeStart of suggested clipEnd of suggested clipSaid as honduras honduras with a silent h. In english however it is usually said as honduras han d'MoreSaid as honduras honduras with a silent h. In english however it is usually said as honduras han d'or ross honduras the beautiful country of honduras.
What do you call someone from Honduras?
Hondurans (Spanish: Hondureñas or Hondureños) are the citizens of Honduras. Most Hondurans live in Honduras, although there is also a significant Honduran diaspora, particularly in the United States, Spain, and many smaller communities in other countries around the world.
Why does Honduras have so much poverty?
By nature, the cycle of poverty is difficult to break. But, in particular, rampant violence and a lack of education in Honduras contribute to poor living conditions for many. Honduras has long been considered one of the most violent places to live, not only in Central America, but in the world.
What are Honduras main exports?
Exports The top exports of Honduras are Knit T-shirts ($1.04B), Coffee ($986M), Knit Sweaters ($834M), Insulated Wire ($501M), and Palm Oil ($325M), exporting mostly to United States ($3.97B), El Salvador ($658M), Guatemala ($478M), Nicaragua ($460M), and Germany ($350M).
What Honduras known for?
Honduras is known for its rich natural resources, including minerals, coffee, tropical fruit, and sugar cane, as well as for its growing textiles industry, which serves the international market.
What is Honduras known for producing?
Main agricultural export products are: coffee (47 percent), shrimps (21 percent), bananas (11 percent), melon (7 percent), lobsters (6 percent) and pineapples (3 percent).
What are the most common jobs in Honduras?
In industry, they are maintenance workers, basic laborers, and handlers. Another quarter of jobs are in services and market sales, and 16 percent are in crafts. Only about a third of Honduran jobs are in more skilled, higher remunerated jobs in agriculture, industry, or services.
Is Honduras the poorest country?
Honduras is the second-poorest country in Central America. With a population of approximately eight million people, poverty in Honduras affects roughly 60 percent of these individuals. Out of 187 countries, Honduras ranked 121 on the United Nations Development Programs 2011 Human Development Index.
What Honduras famous for?
Honduras is known for its rich natural resources, including minerals, coffee, tropical fruit, and sugar cane, as well as for its growing textiles industry, which serves the international market.
What is the legal framework for investment in Honduras?
The legal framework for investment includes the Honduran constitution; the investment chapter of CAFTA-DR, a self-executing international agreement that takes precedence over most domestic law; and the 2011 Law for the Promotion and Protection of Investments. The Honduran constitution requires all foreign investment to complement, but not substitute for, national investment. Honduras’ legal obligations guarantee national treatment and most favored nation treatment for U.S. investments in most sectors of the Honduran economy and include enhanced benefits in the areas of insurance and arbitration for domestic and foreign investors. CAFTA-DR has equal status with the constitution in most sectors of the Honduran economy.
Where are the major industrial parks in Honduras?
Most industrial parks and export processing zones are located in the northern Department of Cortes, with close access to Puerto Cortes, Honduras’ major Caribbean port, and San Pedro Sula, Honduras’ largest commercial city.
How long does it take to start a business in Honduras?
According to the 2020 World Bank Doing Business Report, the average time required for starting a business in Honduras is 42 days and requires 11 steps . Honduras’ business registration information portal ( https://honduras.eregulations.org/ ) provides information on registering a business, including fees, agencies, and required documents.
How many banks are there in Honduras?
The Honduran financial system is comprised of commercial banks, state-owned banks, savings and loans institutions, and financial companies. There are currently 15 commercial banks operating in Honduras. There is no offshore banking or homegrown blockchain technologies in Honduras.
How long does it take to resolve a dispute in Honduras?
Each decision can take months or years, and it is usually not possible for the parties to predict the time required to obtain a decision. Final decisions from Honduran courts or from arbitration panels often require subsequent enforcement from lower courts to take effect, requiring additional time. Foreign investors sometimes prefer to resolve disputes with suppliers, customers, or partners out of court when possible.
When did Honduras merge with ProHonduras?
In May 2019, the Government of Honduras merged the National Investment Council, ProHonduras, with an ambitious job creation mandate. It remains uncertain whether these changes will produce significant reforms in trade and investment. Limits on Foreign Control and Right to Private Ownership and Establishment.
When did Honduras ratify the WTO?
In July 2016, Honduras ratified the WTO Trade Facilitation Agreement, which contains provisions for expediting the movement, release, and clearance of goods, and sets out measures for effective cooperation for customs compliance and trade facilitation issues.
When did Honduras reform its customs system?
In November 2016, the Government of Honduras launched the Presidential Commission for Integral Reform of the Customs System to simplify import/export procedures and improve relevant efficiency aspects of Honduran customs services.
When did Honduras ratify the WTO?
In July 2016, Honduras formally ratified the WTO Trade Facilitation Agreement, which contains provisions for expediting the movement, release, and clearance of goods, and sets out measures for effective cooperation for customs compliance and trade facilitation issues.
How long does it take to start a business in Honduras?
According to the 2019 World Bank Doing Business Report, the average time required for starting a business in Honduras is 13 days and requires 11 procedures. Honduras’ business registration information portal (http://www.honduras.eregulations.org/ ) provides information on registering a business, including information fees, agencies, and required documents. The World Bank’s Honduras Investment Regulation Portal provides quantitative indicators on Honduras’ laws, regulations, and practices affecting foreign companies (http://iab.worldbank.org/data/exploreeconomies/honduras ).
What are the three institutions that are attracting foreign direct investment?
As of April 2019, the Honduran Congress is debating plans to merge the three institutions charged with attracting increased foreign direct investment: the National Investment Committee, ProHonduras, and President Hernandez’s signature Honduras 20/20, an ambitious initiative to create 600,000 new jobs by 2020.
How many banks are there in Honduras?
The Honduran financial system is comprised of commercial banks, state-owned banks, savings and loans institutions, and financial companies. There are currently 15 commercial banks operating in Honduras. There is no offshore banking or homegrown blockchain technologies in Honduras.
How long does it take to resolve a dispute in Honduras?
Each decision can take months or years, and it is usually not possible for the parties to predict the time required to obtain a decision. Final decisions from Honduran courts or from arbitration panels often require subsequent enforcement from lower courts to take effect, requiring additional time. Foreign investors sometimes prefer to resolve disputes with suppliers, customers, or partners out of court when possible.
What is BIT in Honduras?
A Bilateral Investment Treaty (BIT) between the United States and Honduras entered into force in 2001. The U.S.-Honduras Treaty of Friendship, Commerce and Consular Rights (1928) provides for Most Favored Nation treatment for investors of either country. The United States and Honduras also signed an agreement for the guarantee of private investments in 1955 and an agreement on investment guarantees in 1966. CAFTA-DR supersedes most provisions of these agreements. Honduras and the United States signed a Tax Information Exchange Agreement in 1990. In 2014, Honduras and the United States signed the Foreign Account Tax Compliance Act.
How does Honduras improve agriculture?
The government of Honduras has put in place several strategies to increase agricultural production in the country such as giving farmers title deeds for their land and improving infrastructure in the agricultural regions. Despite the reforms implemented by the government, constant violence in the country has slowed down agricultural development.
What was the economy of Honduras during the colonial era?
During the colonial era, Honduras was under the control of the Spanish, and at the time silver mining was one of the key economic activities in the country. The economy of present-day Honduras relies heavily on the natural resources which include arable land and minerals, and some of the leading industries in the state include agriculture, mining, ...
What are the main exports of Honduras?
Some of the main products exported from Honduras include agricultural products such as coffee and bananas, textile products and fish.
What are the challenges of Honduran agriculture?
Some of the challenges that faced the Honduran agricultural sector included soil erosion, lack of adequate finances to develop the industry, and poor farming practices such as slash and burn agriculture. Another challenge that faced the sector was the insufficient use of modern farming technology and poor infrastructure in the agricultural areas. The government of Honduras has put in place several strategies to increase agricultural production in the country such as giving farmers title deeds for their land and improving infrastructure in the agricultural regions. Despite the reforms implemented by the government, constant violence in the country has slowed down agricultural development.
What is the fishing industry in Honduras?
The Fishing Industry. The Honduran fishing industry is one of the nation's most vital industries in the country since it employs a large section of the workforce. The well-developed component of the fishing industry in the country is shrimp and lobster fishing. Major developments in Honduras' shrimp and lobster sector were put in place in ...
How much did Honduras' economy grow in 2017?
Economic Growth Of Honduras. In 2017 the Honduran economy grew by approximately 4.8%. The World Bank expects the Honduran economy to grow by approximately 3.6% in 2018.
What are the challenges of Honduras?
The tourism industry in Honduras has faced some challenges such as poor infrastructure and insecurity. The Honduran government has put in place several measures to improve tourism such as enhancing the security and the infrastructure.
Agriculture
Problems Facing Agriculture
- Some of the challenges that faced the Honduran agricultural sector included soil erosion, lack of adequate finances to develop the industry, and poor farming practices such as slash and burn agriculture. Another challenge that faced the sector was the insufficient use of modern farming technology and poor infrastructure in the agricultural areas. The government of Honduras has p…
The Fishing Industry
- The Honduran fishing industry is one of the nation's most vital industries in the country since it employs a large section of the workforce. The well-developed component of the fishing industry in the country is shrimp and lobster fishing. Major developments in Honduras' shrimp and lobster sector were put in place in the 1980's. Data from the Honduran government indicated that durin…
Tourism
- Tourism is an important sector in the Honduran economy; however, it has faced a significant number of challenges. Data from the Honduran government indicated that more than 250,000 tourists visited Honduras in 1987. Tourists mainly visit Honduras to see the remains of the Mayan civilization in Copan. Copan is a major tourist attraction site since it was the capital of a major ki…
Textile Industry
- The textile industry is one of the fastest growing industries in Honduras and experts believe that Honduras could become the leading textile producer in South America. Textile products from Honduras are mainly exported to foreign nations such as the US and Guatemala. To stimulate the growth of the Honduran textile industry, the government and the private sector have invested va…
Trade
- Trade is also an essential component of the Honduran economy with the primary trading partners being the US, Japan, and other nations in Central America. Data from the government indicated that the top 10 exports contributed to more than 80% of the country's top exports. Some of the main products exported from Honduras include agricultural products such as coffee and banan…
Economic Growth of Honduras
- In 2017 the Honduran economy grew by approximately 4.8%. The World Bank expects the Honduran economy to grow by approximately 3.6% in 2018. Some of the main drivers of economic growth in Honduras include foreign investment and exports as well as remittance from citizens in diaspora.Despite the expected economic growth, the Honduran economy still faces s…