Gdp Growth

Honduras's IMAE economic index rose 3.3% in the first five months of 2026, driven by credit expansion and rising demand for some agricultural goods, despite global pressure from rising input costs.

Honduras's agricultural sector expanded 4.5%, driven by increased coffee, banana, fruit, and palm oil production, while fishing grew on higher shrimp and tilapia exports.

The Central Bank president says Honduras's electricity crisis is the main brake on economic growth, limiting expansion to roughly 3.5% annually without reform, and that fixing the power sector would free public funds for health and education while attracting investment.

Former BCIE president Dante Mossi said Honduras's first-quarter GDP growth of 3.6% was the slowest in Central America, warning that only countries growing above 6% can effectively reduce poverty, and urging the government to support small business, construction, and agriculture.

Honduras's manufacturing industry grew 1.5% in the first quarter of 2026, reversing a 3.0% contraction in the prior quarter, driven by increased demand for food and beverages including processed coffee, fish, oils, flour, and bakery products.

The International Monetary Fund's board approved Honduras's fourth and fifth program reviews, unlocking a $242 million disbursement and bringing total IMF funding to $725 million of a $847 million package, though the IMF flagged missed targets on electrical utility arrears and urged faster energy-sector reform.

Honduras's monthly economic activity index rose 3.5% in the first four months of 2026, driven by stronger agricultural-export sales and increased domestic consumption, the central bank reported.

Honduras's telecommunications sector expanded, driven by growth in mobile and fixed-line phone services and gains in postal and courier services tied to the rise of e-commerce.

Honduras's agriculture, forestry, and fishing sector expanded thanks to improved coffee yields from better farming practices and a rebound in banana, fruit, and African palm production.

Central Bank President Roberto Lagos said Honduras holds $11.5 billion in international reserves—enough to cover 6.7 months of imports—and projects 3.5% economic growth this year, though he cautioned that energy-sector reforms are needed to attract investment and push growth above 4%.