Honduras: a new horizon.

The new president of Honduras, Manuel Zelaya, seems to be in excellent shape to lead his country forward. The economy is growing and inflation has been easing since 2002, giving the country's leadership an excellent shot at maintaining economic stability. Forecasts call for 4.5% growth in gross domestic product in 2006, compared to 2.7% four years ago. Inflation, which rose as high as 9.2% as recently as 2004, should end this year close to 5%, according to experts.

A free trade deal between the United States and several Central American countries, as well as the Dominican Republic, known as Cafta, will help Honduras cement its grip on good economic results. Already signed, the agreement should protect both foreign and domestic investors. Juan Carlos Casco, president of the Honduran-American Chamber of Commerce, says the trade deal is a very important basic tool for increasing investor confidence in the Central American country. "We are doing marketing in order to prove that we can offer a series of protections and benefits for investors in the country," he says. "Honduras has changed a lot compared to 20 years ago and today we are changing rapidly, with more stability, more jobs and, as a result, Cafta will be a big step toward helping the country grow."

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