It will take three years for Honduras to improve economy after coronavirusChristian Fernsby ▼ | September 20, 2020
It will take three years for Honduras to recover its economy from the impact of the health crisis caused by the coronavirus pandemic, former Economy Minister Hugo Noe Pino told a digital newspaper.
The Honduran economy was already immersed in a slowdown during the previous three years, after growing 4.8% in 2017, 3.7% in 2018 and 2.7% in 2019.
The pandemic coincides with a decrease in foreign investment in the country's economy, he pointed out.
Statistics from the Central Bank of Honduras quoted by the economist show that in the first semester of 2020, foreign investment dropped 39.3%, compared to the same period last year, totaling 249.5 million dollars.
The only lifesaver in the country's economy is family remittances, mainly from the United States, where many Hondurans travel at the risk of their lives, the former minister added.
That sector grew twofold from 2010 to 2019, from 2.7 billion to 5.5 billion dollars.
Unlike the developed countries, where the fiscal policy tends to reduce inequalities by creating opportunities for revenues, health care and education, the purchasing power of most Hondurans has worsened due taxes on consumption and production, Pino explained. ■