Honduras Economy News

Honduras received $4.13 billion in family remittances in the first four months of 2026, a 14.3% increase from the same period last year, as part of a $15.85 billion total across the Northern Triangle region.

The central bank auctioned $87.1 million in its June 8 foreign-exchange sale, setting the weighted average exchange rate at L26.6719 per dollar for June 9.

Finance Minister Emilio Hércules said the government has begun distributing the 14th-month bonus to public employees, a payment expected to inject roughly 7 billion lempiras (about $280 million) into the economy by June 10.

Frequent blackouts are crippling Honduras's micro, small, and medium-sized enterprises, with the sector reporting estimated daily losses of 15 million lempiras (about $600,000) as outages lasting up to six hours halt production and sales.

From January through April 2026, the Honduran government received $156.3 million in international disbursements, directing $145.3 million to budget support and $11 million to agriculture, energy, and education projects.

Honduras's public-sector debt reached $9.35 billion by April 2026, up $50 million from December 2025, with the central government accounting for the largest share.

Honduras's public external debt reached $10.75 billion as of April 2026, with 81.2% denominated in US dollars, 14.8% in IMF special drawing rights, and smaller portions in euros, yen, and other currencies.

Business leaders warn that persistent inflation and rising energy costs remain the top concerns for Honduras's economy, with April's year-over-year inflation reaching 5.56% and Middle East instability driving up fuel prices.

Honduras's energy regulator (CREE) has warned that electricity rates will likely rise again in the coming quarter due to volatile and rising fuel prices.

Economists say Honduras should revise its monetary program to counter inflation driven by fuel-price increases, and restructure the state power utility ENEE to reduce losses, cut political interference, and stabilize the electricity system.

The World Bank recommended splitting Honduras's state power utility ENEE into three separate units for generation, transmission, and distribution in 2007, but the government did not act; losses have since grown from 25% to 38% of revenue, and experts say the breakup is now urgent.

Honduras's customs authority collected nearly 29 billion lempiras (about $1.09 billion) in the first six months of 2026, up 13.4% from the same period last year, driven by increased import duties and technological upgrades to reduce evasion and contraband.

Honduras will cut gasoline and kerosene prices by more than four lempiras per gallon starting June 8, while domestic liquefied gas remains frozen under a government subsidy.

The Central Bank of Honduras auctioned $81.1 million in its June 5 currency sale, setting the average exchange rate at L26.6842 per dollar effective through June 8.

Honduras has accumulated $1.027 billion in net international reserves since late January, with import coverage now at 6.5 months, the Central Bank reports.

A potato farmer from San Juan del Rancho selling at capital-area markets reports that potato prices have risen by 5 lempiras.

Honduras has renewed 70,000 acres of coffee plants through a program coordinated by the Agriculture Ministry and the Institute for Honduran Coffee, with officials projecting output will rise to 7 million quintals this harvest from 6.14 million the prior year.

Honduras faces potential US tariffs of 10–12.5% if a US trade office investigation finds forced labor in supply chains, though the government says no specific cases have been identified and frames compliance as an opportunity to strengthen labor inspection and supply-chain transparency.

The Tegucigalpa Chamber of Commerce forecasts that payments of the traditional 14th-month bonus will pump approximately L24.9 billion (about $1 billion USD) into the public and private sectors combined.

Kerosene prices in Tegucigalpa have dropped 20.12 lempiras per gallon over six weeks, falling from a historic high of 144.33 lempiras to 124.21 lempiras as summer demand in North America eases.

All major petroleum products will drop in price starting June 9, with kerosene falling 4.14 lempiras per gallon and regular gasoline declining 3.45 lempiras per gallon, as the Energy Ministry attributes the cuts to lower international oil prices following Middle East tensions.

Uber drivers held a demonstration on Friday seeking government approval to operate legally, citing lack of employment opportunities in their traditional professions.

Honduras's currency depreciated again on June 5, with the central bank's daily forex auction setting the dollar at L26.67 for purchase and L26.80 for sale, continuing a sustained slide blamed on IMF-backed exchange-rate policy adjustments.

Honduras's central bank auctioned $81 million in its June 4 foreign-exchange sale, setting a weighted average exchange rate of L26.67 per dollar for June 5.

The vice president of the Tegucigalpa Chamber of Commerce warned that while Honduras has made macroeconomic progress, inflation, insecurity, unemployment, and extortion continue to prevent those gains from improving living standards for ordinary Hondurans.

Domestic rice output has fallen below 500,000 quintals against annual demand of 6 million, leaving Honduras to import roughly 90% of its supply from the US, Brazil, and Paraguay.

Honduras's state power utility is auctioning L2.2 billion (about $88 million) in bonds at interest rates of 10.6% to 12.2% to pay down arrears exceeding L16.4 billion owed to private energy suppliers.

Honduras is servicing over $3.3 billion in foreign loans for 66 active projects, 76% of which have failed to reach 50% execution by end of 2025, including 19 that have not begun, forcing taxpayers to cover interest and fees on work generating no public benefit.

The central bank allocated $96.3 million in its June 3 currency auction, setting the weighted average exchange rate at L26.67 per dollar for June 4.

Honduras's Energy Ministry announced Friday that fuel prices will fall effective Monday, June 8, with decreases across refined products.