Honduras: Rough Road Ahead

CENTRAL AMERICA - Report 28 Nov 2013 by Francisco de Paula Gutierrez
Executive Summary Honduran President-elect Juan Orlando Hernández will have to navigate a rough road, after a polarizing campaign that divided the country. Hernández will face major challenges, including political fragmentation, a likely divided Congress, security risks, muted economic growth and significant poverty. He’ll also have to deal with low productivity, high fiscal deficits, heavy dependence on external savings and monetary and currency rigidities. In Guatemala, the EU Association Agreement is finally scheduled to come into force. That raises domestic expectations, since the deal ...

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