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Latin America Investment News on Viva Tropical

Investment Grows in Honduras But Unemployment Levels Remain the Same

Article Summary:

In 2011 Honduras achieved its highest level of direct foreign investment since 2000 according to official figures, but this investment growth has done little to counteract the nation’s high unemployment level.

Original Article Text From Prensa Honduras via Google Translate :

Investment Grows But Does Not Generate More Jobs

Honduras registered the previous year the highest level of FDI (foreign direct investment) seen in the last decade, according to official figures, although this field is difficult to recognize where is this money.

From the Department of Statistics Macroenómicas BCH (Central Bank of Honduras), 2011 registered a level of investment of 1,014.1 million (19,750.3 million lempiras), ie, eight million more than the previous record, which was 1,006.4 billion dollars in 2008.

According to the Bank, attracted more investment sectors were transport, storage and communications with $ 316.9 million, manufacturing with $ 243.4 million, with $ 148.4 million maquila and trade, restaurants and hotels with $ 103.1 million.

Despite these figures, the prevailing impression being businessmen in Honduras is that it deprives a bad business climate that discourages investment.

These numbers coincide with the country’s trend in Latin America. A report by ECLAC (Economic Commission for Latin America and the Caribbean) presented last week, “Latin America and the Caribbean received 153.448 million dollars of foreign direct investment in 2011, representing 10% of these global flows.” The region also reported a record in this section.

In the case of Central America, Honduras, with 1.014 million dollars in FDI, was the third destination for international investors, second only to Panama (2.790 million) and Costa Rica (2,104,000). Overall, “FDI inflows increased 36% over 2010,” says the ECLAC report.

With this background, the United States continues to lead as the country with more investment in Honduras, followed by Canada and Mexico.

Employment is not growing well
With all the positive things that are investment levels, Honduran private sector representatives point out that in contrast to investment, employment generation has seen very little growth.

Oscar Galeano, manufacturing entrepreneur, said “we can not yet reach the levels of job leading to a decrease that dwells (labor) that exists.”

Galeano says that while the investment reflects the statistics cited by the BCH, “If we go to the link between the amount and the generation of new jobs, we will realize that we are not achieving the purpose that we really wanted.
The country needs to create a political dynamic job creation, “said Galeano. An industry in which less was spent last year was construction, which since 2008 back in -36%.

Osmin Baptist, regional president of the Chico (Honduran Chamber of Construction Industry), said “there has been a dramatic recovery: in the last three years has come to +3%, recovering to 39%.”

Bautista added that the industrial sector is expected to close this year with growth of between 8 and 9%, projected to generate up to 125 thousand jobs when closing 2012.

According to Bautista, the industry expects major energy projects and help them link tourism over the next three to four years sustained growth that enable them to regain the levels of employment prior to the 2008 financial crisis.

Link to Original Article:

From Prensa Honduras

Latin America Investment News on Viva Tropical