Political crisis causes huge economic losses to Honduras

[Judi Lynn]

Political crisis causes huge economic losses to Honduras
2009-07-31 14:05:07

BEIJING, July 31 -- With the post-coup government in Honduras now a month old, the political crisis has caused at least 100 million U.S. dollars losses to the Latin American country, according to data released by authorities.

The country's normal commercial operation collapsed amid the curfew imposed by the post-coup government, large-scale demonstrations and ensuing conflicts.

The social upheaval also resulted in market shrinkage and massive unemployment.

In the whirlpool of the world financial crisis, Honduras nationwide sales volume has slumped 35 percent over the first five months of this year, and the new unemployed population has gone up to 180,000.

http://news.xinhuanet.com/english/2009-07/31/content_11803918.htm

[rabs]

1. Thanks for this link, Judi

Couple of days ago I was looking in financial news sites to see if could find anything on the economic impact.

The crisis with all the strikes has to be having a devastating effect on the economy. Couple of days ago saw where showmakers and apparel makers in the U.S. (both industries have maquiladoras in Honduras) were lobbying the BO administration to DO SOMETHING!

Some days ago read where tourism to Honduras was down 80 percent, but I suspect it may be almost 100 percent. The State Department has issued a no-travel warning to U.S. citizens. The tourism industry alone supposedly brings in between 600 and 700 million dollars a year. Scuba diving on the Atlantic coast is a big draw, or was before June 28.

It seems it is now down to a war of attrition with the resistance relying on its will power to stay the course, and the golpista oligarchas on how long they can stand the massive economic losses they are certainly suffering.

Cannot say I feel sorry for the "Ten families" that control everything, industry, shipping, trucking, telecoms, supermarkets, malls, etc etc etc.