In Honduras, Xiomara Castro’s Government Is Caught in the “Remittances Trap”
As state spending rises, money from the diaspora is an economic lifeline—but it comes at a steep cost.
After her election in 2021, observers had high hopes for Honduran President Xiomara Castro—and much skepticism. Now, a year and a half into her administration, Castro has increased government spending and sought investment from China. But other campaign promises remain unfulfilled, and Castro’s LIBRE party is divided. Crime remains high, helping fuel enormous, continued flows of northward migration. All this is taking a toll on Castro’s approval, which dropped nearly 20 points over the past year to 43%, according to a recent survey. But despite these serious problems, Castro has...
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