Honduras Economy News

Banhprovi is reviewing mortgage interest rates (currently 4% for social housing, 7% for middle-income) and the government is preparing housing subsidies of up to L200,000 for single-family homes and roughly L300,000 for apartments to offset higher borrowing costs.

The Central Bank of Honduras auctioned $89.2 million on October 26, setting the weighted average exchange rate at L26.8964 per dollar for October 27.

Fenagh, the Honduran farming and livestock federation, warns that soaring costs for fuel, fertilizers, and other production inputs—diesel has doubled to roughly 160 lempiras a gallon—threaten producer margins and could raise prices for domestically produced food.

International cacao prices have recovered to $5,600–$6,000 per ton after falling to $3,400, but Honduras struggles to boost production due to lack of investment incentives and production costs that have risen over 40 percent.

Public-transit fares on suburban routes serving Tegucigalpa and nearby municipalities rose by 2–3 lempiras on October 26, with operators citing higher fuel costs and operating expenses; the IHTT confirmed the increase after meetings on the fuel crisis.

Honduras imported 21 million barrels of fuel in the first eight months of 2026, an 8.3% increase from the same period last year, driven largely by higher bunker purchases for electricity generation.

The average price of fuel imported by Honduras reached $110.39 per barrel from January through August 2026, a 32.5% increase from the same period in 2025, driven mainly by supply disruptions in the Middle East.

Honduras's imports of general merchandise increased 11.7% year-over-year through August 2026, driven mainly by higher purchases of fuel, transport equipment, and industrial supplies.

A survey shows Hondurans' biweekly pay now lasts 9.8 days instead of 10.6 days as of August, with 57% prioritizing food spending, 63% carrying debt, and 70% expecting to run out of money before the next paycheck.

The Economic Development Ministry released a base document for Honduras's new industrial policy, developed through consultation with 671 participants and 323 institutions and companies, aimed at modernizing production, improving competitiveness, and creating jobs.

Banasupro has temporarily closed Agrosupro stores in Tegucigalpa and Juticalpa during quality audits, leaving farmers without access to agricultural supplies sold at 30% discounts that the state program provided since 2024.

The Agriculture Ministry will distribute farm inputs and upgrade seed-storage facilities in five departments, with farmers providing base seed for multiplying 9,000 quintals (about 400 metric tons) of certified bean seed for 2027 planting.

Dante Mossi, former president of the Central American Bank for Economic Integration, warns that inadequate supervision of foreign-currency allocation mechanisms could cause dollar shortages in Honduras and says the International Monetary Fund should advise the Central Bank on the issue.

Prices for staple vegetables in San Pedro Sula have climbed sharply—lettuce reached L50 per pound (up from L25), onions L30, potatoes L30, and cabbage L15—as wet weather disrupts local and Guatemalan supplies.

Honduran rambutan (locally called licha) exports reached $6.05 million in 2024, a 16.3% increase from the prior year, with about 2,500 farmers and 3,000 farms supplying the crop mainly to the United States, Europe, and Asia.

Egg carton prices have jumped by up to 27 lempiras (about $1.08) in recent months, a rise that former Honduran Press Association president Osman Reyes says is eroding Hondurans' purchasing power.

José Enrique Santos, a former head of consumer protection, says he finds the government's plan to deregulate prices on basic-basket items highly damaging to ordinary Hondurans.

Premium and regular gasoline drop significantly starting October 26, while the government holds diesel prices steady for a fourth consecutive week to cushion international market increases.

Economist Fredy Tejada cautioned that Honduras faces obstacles in its sixth IMF agreement review, citing high current spending, budget execution below 50%, unfulfilled commitments to cut public-sector payroll, persistent inflation, and ongoing losses at the state electricity company.

Honduras's net international reserves reached $11.6 billion as of October 22, up $1.3 billion since January, providing coverage for 6.7 months of imports.

The Central Bank of Honduras auctioned $79.4 million in its October 23 currency sale, setting the weighted average exchange rate at L26.9002 per dollar for October 24–26.

The government froze electricity rates to prevent a 20% surge from power contracts signed by the previous administration, shielding household budgets and the economy while recent rainfall boosts hydroelectric generation.

Prices for eggs and fresh vegetables including lettuce, onions, and potatoes have climbed this week at Tegucigalpa's Farmers Market, with vendors citing production losses from excess water and higher feed and transport costs.

Consumer Protection Director Daniel Lou warned that inspectors will penalize merchants charging more than the agreed 8-lempira (about $0.32) cap per carton of eggs above the previous price, after authorities detected some sellers exceeding the limit set with producers representing 80% of the market.

The proposed 455.4-billion-lempira budget for 2027 would reduce public investment by 17.3% year-over-year to 39.9 billion lempiras (about $1.6 billion), with productive investment falling 34%, according to business-group analysis.

The UN Economic Commission for Latin America and the Caribbean cut its 2026 regional growth forecast to 2% from 2.2% due to geopolitical tensions and trade disruptions, but Honduras is projected to grow 3.5%, outpacing most peers in the region.

The Finance Ministry paid 255.2 million lempiras (about $10.2 million) in severance to 1,353 employees from 16 closed public agencies as part of a government restructuring, with Finance Secretary Emilio Hernández Hércules saying the closures removed redundant positions without significantly impacting the budget.

Honduras's government negotiated with producers and retailers to reduce a planned egg-carton price increase from 20 to 8 lempiras, while Banasupro will hold its medium carton at L95; rising feed and fuel costs continue to pressure the poultry sector.

The Central Bank of Honduras auctioned $87.2 million on October 22, setting the weighted average exchange rate at L26.8956 per dollar for October 23.

An energy analyst warns Honduras could face an unfavorable International Monetary Fund evaluation because state utility ENEE has failed to meet targets for reducing electricity distribution losses, a goal tied to the country's IMF program.