Honduras frustrations over lack of reforms will mount

Significance

Slow progress in enacting reforms is fostering frustration among those who had hoped that Castro would prompt substantial change when she came to power two years ago. Her tax reform had promised to improve public finances and enable public spending.

Impacts

• Risks of unrest will increase as Castro fails to address societal demands.
• The poor legislative record of Castro's party could weigh on its chances in the November 2025 elections.
• Pressure from international actors such as the United States, the EU and the IMF to enact reforms will increase.