Honduras Economy News

Honduras's energy ministry announced new fuel prices effective July 27, with gasoline, diesel, kerosene, and vehicle gas rising by up to 5.59 lempiras per gallon in San Pedro Sula, while the government maintains temporary subsidies on regular gasoline and diesel.

Vendors at the Feria del Agricultor are absorbing a recent L2-per-pound cost rise to keep beef prices stable, though drought threatening cattle feed may force adjustments in coming weeks.

President Nasry Asfura announced $17 million in additional funding to expand ProOccidente, a rural development program, into Honduras's Dry Corridor, aiming to provide technical assistance, climate-smart technologies, financing, and market access to over 4,500 small and medium-sized farmers.

The Central Bank of Honduras auctioned $86.8 million in its July 23 foreign-exchange sale, setting the weighted average exchange rate at L 26.7768 per dollar for July 24.

The Trump administration announced new tariffs of 10–12.5% on imports from 60 countries, citing insufficient efforts against forced labor; Honduras faces a 10% additional tariff alongside Mexico, Guatemala, and El Salvador.

Presidential trade commissioner Melvin Redondo said Honduras has complied with legal requirements in a US tariff review affecting 17–20% of exports and has passed a decree banning imports from forced-labor conditions to avoid a potential 12.5% increase.

The private-sector business council says Honduras should borrow the $400 million CAF financing to strengthen the housing bank and spur construction, but opposes debt used only to cover government operating costs.

Honduras's central bank says higher net foreign reserves expanded money supply through currency conversion, but officials have partially offset that expansion by absorbing liquidity from the financial system.

The head of Honduras's apparel manufacturers association is calling on the government to negotiate zero tariffs with the United States for agricultural goods and auto parts, matching Mexico's treatment, to boost competitiveness as the Trump administration considers new trade measures.

Honduras sold a 10-year sovereign bond for $815.67 million at a 6.4% interest rate, securing funds for debt management and the national budget while locking in interest rates more than 2 percentage points lower than a 2024 issuance.

The Central Bank of Honduras auctioned $96.5 million in its daily currency sale on July 22, setting the weighted average exchange rate at L26.7722 per dollar for July 23.

Coffee businessman Basilio Fuschich said a proposed additional 2.5% US tariff on products from countries with forced labor would, combined with existing tariffs, harm Honduras's exports and give competitors an unfair advantage unless applied uniformly across the region.

The government and private-sector leaders, including Cohep president Anabel Gallardo, have lobbied US officials to prevent tariff increases, warning that higher duties on maquila and coffee exports would cost jobs and drive migration.

The United States will impose tariffs of at least 2.5% on about 60 countries, including Honduras, citing forced labor and child labor in supply chains; the measure threatens Honduran exports of coffee, melons, and lobster, which face existing duties ranging from 10% to 25%.

Honduras's banking sector continues to strengthen as private deposits rise, driven by economic activity and robust family remittances, the central bank reports.

Honduras's central bank reported strengthened foreign-exchange reserves driven by sustained inflows of family remittances and revenues from goods and services exports.

The CAF development bank approved $400 million in financing and technical support for Honduras's Integral Social Housing Program, which aims to expand affordable, accessible, and climate-resilient housing and strengthen the sector's financial institutions.

Lawmakers are reviewing a sweeping reform of Honduras's securities law that would let Hondurans channel savings and remittances into investments rather than consumption, an approach already common in Costa Rica, Panama, and the Dominican Republic.

After seven weeks of fuel price declines totaling 15–20 lempiras per gallon, Honduras's petroleum distributors say food and service prices have not fallen proportionally, while the government's consumer protection office reports that 16 basic-basket items did drop in Tegucigalpa markets.

The Central Bank of Honduras auctioned $112.1 million in a foreign-exchange sale on July 21, setting a weighted average exchange rate of L26.7744 per dollar for July 22.

Economist Julio Raudales says the Central Bank of Honduras's inflation target of 5–6% is reachable if monetary policy remains disciplined and external shocks do not occur, though he cautions that balancing price control with economic growth remains a key challenge.

Economist Ismael Zepeda says the Central Bank will struggle to control inflation through monetary policy given international conflicts raising fuel costs and a planned electricity rate increase in the third quarter, though the bank aims to absorb excess money supply and cut monetary emissions by 11%.

Active interest rates on business loans have decelerated across commerce, industry, and services, tracking softer deposit rates, according to Central Bank data.

Honduran onion producers say they may suspend planting next season if the government fails to enforce a 2023 agricultural decree that restricts imports when local supplies are sufficient, warning of potential national shortages and market disruption.

The research organization Sendas called for energy-sector reform to be built on political independence, reduced technical losses, financial recovery, greater market competition, and accountable leadership to address ENEE's structural crisis, which cost the utility about $530 million in uncollected revenue during 2025.

Honduras's Property Institute is collecting annual vehicle registration fees on a staggered schedule through December, with an amnesty allowing owners to catch up on 2025 and earlier unpaid fees without penalties, while projecting revenue of L5.4 billion (about $216 million).

Honduras's Part-Time Employment Law, approved in March 2026 with promised creation of 40,000 jobs, has generated only 59 registered contracts as of June, prompting officials and ruling-party lawmakers to acknowledge the law has failed to meet expectations.

The Chamber of Commerce and Industry of Cortés warned that international companies have suspended investment plans in Honduras pending the outcome of U.S. tariff negotiations, citing concern that a 10% tariff and potential further restrictions could push capital to competing Central American countries and hurt the manufacturing and job sectors.

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%.

Economic Development Minister Eddy Ordóñez said Honduras hopes the United States will hold tariffs steady or reduce them when current rates expire on July 24, and noted the government has removed non-tariff barriers and approved a forced-labor ban to support bilateral negotiations.