Honduran Economy is Hurt by Recent Coup

The political crisis is costing Honduras an estimated $50 million a day, which the third poorest country in the Americas cannot afford.

While negotiators for overthrown President Manuel Zelaya and interim leader Roberto Micheletti decide on what to do next, the outside world, (particularly the US) has made its displeasure quite clear.

Economically, the US buys more than 70% of Honduras' exports and provides more than two-thirds of its foreign direct investment.

Further, the US provides the most tourism to Honduras, however the rate of tourism has decreased by 40% in the past three months.

US aid to Honduras has also been compromised since the coup. In 2005, Honduras signed a five-year deal with a US government agency called the Millennium Challenge Corporation, which invested $215m in improving its infrastructure.

But $15m of funding for this remodeling of infrastructure has been withheld since Mr Zelaya was overthrown. US officials justify that Mr Micheletti's actions are "inconsistent with a commitment to democratic governance".

Seemingly, the political turmoil within the country is negatively affecting its economic ties.

Photo Source: BBC Americas Honduras turmoil bears bitter fruit 2009