Economists have estimated that the political crisis in Honduras could deepen the country's recession, but the post-coup authorities seem quite optimistic about its ability to overcome the difficulty.
SEVERE ECONOMIC DOWNTURN PREDICTED
Honduras-based economists, who had predicted a 1-percent decline in the country's gross domestic product (GDP) before the June 28 coup, said the political crisis could result in a two-digit drop in the country's GDP.
Figures in the Honduran business circle have said that the country has lost some 100 million U.S. dollars in trade due to highway closures and other protests that have taken place since June 28, when President Manuel Zelaya was ousted to Costa Rica in a coup.
The nation's main aid contributors have frozen their promised cash. The European Union suspended 65 million euros (93 million dollars) in aid it pays directly to the Honduran government, while the United States has halted 16.5 million dollars in military assistance.
The political crisis has also dealt a blow to tourism. European airliners have suspended planned flights to the Caribbean islands belonging to Honduras, and hotel occupancy rates are some 40 points lower than the average of past years, according to Ana Abarca, who is in charge of tourism in the post-coup government.