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Honduras: Foreign Investment
Country Study > Chapter 3 > The Economy > External Sector > Foreign Investment


With the exception of relatively recent, Asian-dominated investment in assembly firms along Honduras's northern coast, the country remains heavily dependent on United States-based multinational corporations for most of its investment needs in the early 1990s. Overall investment as a percentage of GDP declined dramatically during the 1980s, from about 25 percent in 1980 to a meager 15 percent in 1990. Dole Food Company and Chiquita Brands International together have invested heavily in Honduran industries as diverse as breweries and plastics, cement, soap, cans, and shoes.

As Honduras enters the 1990s, it faces challenging economic problems. The solutions relied on in the past -- traditional export crops, the maquiladora assembly industry, and 1980s' development schemes -- appear unlikely to provide enough new jobs for a rapidly growing population. The major economic challenge for Honduras over the next decade will be to find dependable sources of sustainable economic growth.

In general, Honduras receives little scholarly analysis. Bibliographic sources for Honduras are mainly to be found in books about Central America, and, for the most past, Honduras is allocated less coverage than its neighbors. The annual Economic and Social Progress in Latin America report of the InterAmerican Development Bank is one of the most thorough sources. Banana Diplomacy: The Making of American Policy in Nicaragua, 1981-87, by Roy Gutman, provides a good comprehensive background for understanding the evolution and complexities behind Honduras's political and economic problems. Poverty, Natural Resources, and Public Policy in Central America, by Sheldon Annis and contributors, is a valuable analysis of possible solutions to the many problems confronting the region. Finally, specialized regional newsletters, particularly Latin American Newsletters [London], Central America Report; and Business Latin America are important sources for specific economic information on all the countries of the region. (For further information and complete citations, see Bibliography.)

Data as of December 1993

Last Updated: December 1993

Editor's Note: Country Studies included here were published between 1988 and 1998. The Country study for Honduras was first published in 1995. Where available, the data has been updated through 2008. The date at the bottom of each section will indicate the time period of the data. Information on some countries may no longer be up to date. See the "Research Completed" date at the beginning of each study on the Title Page or the "Data as of" date at the end of each section of text. This information is included due to its comprehensiveness and for historical purposes.

Note that current information from the CIA World Factbook, U.S. Department of State Background Notes, Australia's Department of Foreign Affairs and Trade Country Briefs, the UK's Foreign and Commonwealth Office's Country Profiles, and the World Bank can be found on

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