Honduras Economy News

Small-business owners in the Sula Valley report daily losses of approximately L10 million (about $400,000) from six- to eight-hour power outages in September, with three blackouts so far accumulating roughly L30 million in damages.

Construction and tourism industry leaders say they can absorb thousands of Hondurans returning due to TPS (Temporary Protected Status) termination, citing demand for bilingual, skilled workers, though they stress the need for government coordination.

President Asfura blamed widespread blackouts and power rationing on peak-hour demand and fuel shortages at generating plants, while announcing that Congress-approved energy reforms await final review before publication and that roughly 1,500 megawatts will be tendered to stabilize the grid.

Honduras's ambassador to Spain announced that about 2,000 additional Honduran workers have been pre-selected for agricultural jobs in Spain, building on an existing group of 1,100 already in the country, with selection to begin in October for January arrival.

Honduras's economy expanded 4.8% in the first seven months of 2026, officials said, driven by employment generation, consumer spending, and business activity that sustained growth momentum through mid-year.

The Honduran private-sector council (Cohep) is calling for the 2027 national budget of roughly 457 billion lempiras to prioritize productive investment and job creation over current spending, citing concerns about low public-investment execution.

The Central Bank of Honduras stated that core inflation in August reflects its monetary-policy stance to mitigate fuel-price volatility and effects of El Niño, citing international uncertainty from the US–Iran conflict that has driven up global fuel costs since late February.

The National Congress established a working group with legislators and government officials to investigate rising prices in essential foods and household goods, identify speculative pricing, and determine legal penalties for unjustified increases.

Honduras must improve transparency, anti-corruption controls, and institutional oversight to qualify again for funding from the US-backed Millennium Challenge Account, according to a governance expert who highlighted recent reforms in energy and beneficial-ownership disclosure as steps forward.

ENEE's manager Guillermo Peña Panting says stabilizing power supply is the immediate priority as the utility faces infrastructure weakness that could extend through 2026 and into next summer, while the recently approved electricity sector reform begins implementation.

Miguel Aguilar, president of the STENEE electrical workers' union, says Hondurans are exhausted by rolling blackouts driven by drought, low reservoir levels, and diesel shortages, and urges the government to pursue long-term fixes—including over 1,800 megawatts of new generation capacity rather than the 600 megawatts announced.

President Asfura announced plans to bid out approximately 600 megawatts of new electric-generation capacity to reduce reliance on costlier spot-market power and lower electricity costs, while reporting his administration has halved the overdue payments owed to power generators.

Honduras projects the 2026–2027 coffee harvest, beginning in October, could exceed 7.5 million sacks and generate over $2.4 billion in export revenue if favorable weather holds and international prices stay above $300 per unit.

Honduras banana exports remain stagnant at around $20 million as fertilizer costs surge 300%, prompting many farmers to sell their land and exit the sector, industry leaders warn.

ENEE's 400-megawatt diesel-lease contract, signed under former management, requires the state utility to buy fuel at over $100 per barrel, driving generation costs above 45 cents per kilowatt-hour and forcing rolling blackouts that a partial rate freeze cannot offset.

Honduras is separating ENEE's generation, transmission, and distribution into distinct state-owned companies and creating an independent system and market operator, mirroring reforms other Central American nations completed 20–25 years ago.

Finance Minister Emilio Hernández Hércules and Central Bank President Roberto Lagos are traveling to Washington to advance Honduras's sixth IMF program review and pursue new Millennium Account funding, citing favorable macroeconomic indicators and a reduction in economic risk.

Ocotepeque farmers asked agricultural authorities to establish regulations on potato and onion sales to combat illegal imports that undercut domestic prices; the Agriculture Ministry is drafting new rules and plans to provide fertilizer support.

Honduras's new Energy Justice Law freezes electricity rates for six months, but the Electricity Regulatory Commission warns that bills can still increase if household consumption rises or if commercial charges apply.

An audit of the Agricultural Marketing Institute's grain reserves in La Lima found pest damage in corn and hardening in beans that render part of the stockpile unsafe for human consumption, though officials say they are replenishing strategic reserves with 60,000 additional quintals (about 2,700 metric tons) purchased from local producers.

Following passage of the Energy Justice Law, approximately 10 companies are planning new investments in Honduras, including a $400 million light manufacturing project in Choloma, with officials citing energy-sector reforms as a key enabler for business confidence.

Honduras's electric-sector overhaul, which restructures ENEE and addresses transmission infrastructure and technical losses, will take at least two years to meaningfully reduce blackouts while the government executes infrastructure investments and tackles the utility's 120-billion-lempira debt.

Escalating international crude prices and Middle East tensions risk pushing up fuel costs and inflation in Honduras, squeezing household budgets and business operating costs across the import-dependent economy.

Honduras faces a housing deficit of 1.57 million units, according to UNAH, with roughly 45,000 units added to the gap each year as high costs and limited financing block most families from homeownership.

Honduras's petroleum distributors' association is warning that rising international diesel prices could push up transport and food costs, and is calling on the government to adopt a long-term energy policy.

Honduras's National Congress and the World Food Programme finalized a technical cooperation agreement to address severe drought affecting over 100 municipalities, targeting immediate food aid and longer-term irrigation and agricultural infrastructure.

The Central Bank of Honduras sold $93.1 million in its daily currency auction on September 7, setting the weighted average exchange rate at L26.8743 per dollar for September 8.

Honduras's net international reserves reached $11.6 billion on September 4, up $1.3 billion since January, providing coverage for 6.7 months of imports.

About four of every ten Hondurans lack enough income to cover basic needs for food, transport, health, and education, even when employed, as informal work, wage stagnation, and inflation leave millions financially vulnerable.

Three blackouts lasting 6 to 8 hours in September have cost small and medium-sized businesses in the Valle de Sula an estimated 30 million lempiras (about $1.2 million), with most lacking backup generators to sustain operations, a sector representative said.