Business leaders warn of economic risks posed by LIBRE proposals in Honduras

The Honduran business sector has expressed concern about the current political climate, considering that Honduras could be moving toward an economic and social model that limits private investment. Representatives of the private sector warn that the initiatives promoted by former president Manuel Zelaya and LIBRE presidential candidate Rixi Moncada could generate uncertainty in the country and affect economic stability.

Investment Red Flags

Both local and international business leaders indicate that the nation is no longer considered a secure destination for investments. A spokesperson for the Chamber of Commerce stated that there are indications the government aims to duplicate an authoritarian system featuring significant state involvement, akin to the models seen in Venezuela and Nicaragua.

These warnings arise in a context of political proposals that include reforms with greater state control and a confrontational discourse toward private enterprise. The perception of risk has led to the paralysis of projects and the reconsideration of operations by investors who previously had a stake in strategic sectors, such as energy.

A foreign investor declared that he chose to pull out his funds due to the unpredictability stemming from potential shifts in the regulatory landscape and economic policy, which could jeopardize the returns and safety of his investments.

Narrative of refounding and concentration of power

For their part, Zelaya and Moncada have promoted a narrative aimed at “refounding” the country, which, according to analysts, could translate into a concentration of power and institutional weakening. This vision has generated concern among economic actors, who fear that the proposed structural changes could impact governance and the stability of the private sector.

Critics of the framework put forth by LIBRE contend that, if put into practice, the changes might result in increased governmental involvement in the economy, thereby restricting private sector engagement and eroding investor trust. The ambiguity surrounding how these initiatives will be carried out has heightened the sense of risk, impacting the strategic foresight of both domestic and global businesses.

Socioeconomic repercussions

The political situation has had a direct effect on the economy: capital is being relocated outside the country, projects are on hold, and some companies have reconsidered their continued presence in key sectors. This scenario poses a challenge for job creation and economic development, while intensifying polarization between different sectors of society.

Experts highlight that the nation is experiencing a critical period where political choices might determine the private sector’s trust, alongside Honduras’s capacity to draw in and retain investments. Institutional discourse and transparent economic strategies are proving to be vital components for ensuring future stability.

The current situation shows a country in which governance, institutions, and private investment are under pressure. The business sector is closely monitoring each proposal from LIBRE, assessing how it could affect the country’s economy and institutional structure, while political actors move forward with their agenda for change, with implications that have yet to be measured in terms of investment, employment, and sustainable development.