Zelaya's Return Boost To Economic Outlook

The imminent return of ousted former president Manuel Zelaya to Honduras could provide an important boost to the country's economic outlook, as aid and investment inflows are bolstered. Moreover, the associated improvement in regional political relations bodes well for Central America's attempts to fight the illicit drugs trade. That said, the country still faces massive social instability due to high levels of violent crime, which will cap long-term growth rates.

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