Honduras

Political stability and governability challenges are increasing for the president, Xiomara Castro of the leftist Libertad y Refundación (Libre) party, as stiffer opposition stalls her reform agenda and increases concerns that she will fail to deliver on her campaign promises. In response, Ms Castro has radicalised her stance in a bid to preserve the support of her core left-wing base. As such, we political tensions to increase, particularly as Congress debates her recently submitted tax reform bill. High inflation, an expected economic slowdown in 2023 and setbacks to her efforts to combat gang extortion will also weigh on the Castro administration.


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