HONDURAS HAS THE POTENTIAL FOR FASTER GROWTH
Honduras, officially the Republic of Honduras, is a country in Central America with coasts on the Caribbean Sea to the north and the Pacific Ocean to the south. Honduras is a unitary state and defines itself as free, sovereign and independent. Tegucigalpa, along with Comayagüela, constitute the capital of the country, with Tegucigalpa being the most populous city. It is bordered to the north and east by the Caribbean Sea, to the southeast by Nicaragua, to the southwest by the Gulf of Fonseca and to the south by El Salvador, and to the west by Guatemala.
Tourist diversity. Honduras is visited by visitors from all over the world for various reasons, among them, the visit of its forests, islands and beaches by cruise ships, airplanes or by road, being its main drivers the ecological tourism, cultural tourism and archaeological tourism.
The country’s economy recovered to 12.5% growth in 2021 and is expected to grow by 3.5% in 2022 and 3.1% in 2023. A new government took office in early 2022 and will have the opportunity to chart a course consistent with the country’s recovery and rebuilding needs and address critical barriers to growth. Continuing the focus on boosting growth and competitiveness, fostering inclusion by improving access to quality basic services and jobs, and promoting resilience to climate change will improve social outcomes and foster more economic opportunities among the country’s most vulnerable. Institutional reforms on key issues, such as improving the sustainability of the electricity sector, as well as governance and the business climate, can also contribute to further developing a framework for inclusive growth in Honduras.
Honduras belongs to 39 international organizations, including the United Nations, the OAS and SICA. The United States is one of Honduras’ main allies, both politically and economically. Trade with the U.S. represents about 34.2% of Honduras’ total trade flows. In addition, according to various estimates, about 1,000,000 Hondurans live in the United States.
Israel has become an important partner of Honduras in recent years. Both countries have signed several agreements and memoranda of understanding on defense and cooperation. Of particular note is Honduras’ recognition of Jerusalem as the capital of the State of Israel.
China and Honduras initiated formal diplomatic relations. “The two governments have decided to recognize each other and establish diplomatic relations at the ambassadorial level,” with immediate effect, the Chinese Foreign Ministry said in a statement.
Operations approved by the World Bank during 2020 include a $20 million emergency investment project to respond to the threat posed by COVID-19; a $119 million credit to mobilize financial resources to respond to the COVID-19 emergency; $30 million to support an investment project to improve the quality of prebasic education services; a $45 million project to improve water supply services in participating urban municipalities; A $70 million project to improve water service delivery and governance in the Dry Corridor, and a $150 million project to support the country’s response and recovery needs following hurricanes Eta and Iota.
Honduras possesses multiple strengths and the potential for faster growth and greater shared prosperity, due to its strategic location, a growing industrial base, ongoing efforts to diversify its exports, and a young and growing population. for our clients., entrepreneurs, companies and large corporations, have trusted in our strength and reliability, that is why in 2022 we were considered the main bank in Honduras and we are in the top 10 in the region according to the CNBS report.
We have just been recognized as the leading bank in Honduras, with investments of US$1.087 billion and assets of US$6.9 billion, according to the report of the National Banking and Insurance Commission of Honduras. The same report places us among the top ten banks in the region.
The United States is Honduras’ main trading partner; both in exports and imports and international trade requires specialized financing that Honduran banks obtain from our correspondent relationships with US banks. The United States is also the source of a high proportion of foreign investment, where U.S. companies that set up operations in Honduras also require financial services. Finally, the United States is the main source of remittances received in Honduras, which are so important for supporting economic growth and improving the well-being of families.
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