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Economy / Honduras

Aid Cancellation Bad For External Accounts

January 2011 | Economic Analysis

While a more favourable external environment bodes well for Honduras' export sector, the current account is set to remain firmly in deficit over the longterm. More concerningly, FDI remains low, and the US recently became the latest of a number of countries to suspend or cancel aid transfers due to political problems, putting the country's external accounts on an increasingly shaky footing going forward.

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