Honduras Economy News

Honduras's jobless population jumped from 211,015 people in 2025 to 290,314 in 2026—a gain of nearly 80,000 unemployed—prompting warnings from economic analysts about the need for investment and productivity measures.

Honduras's private-sector council will analyze the draft national budget to assess how funds will be spent, whether increases go toward productive investment or routine expenses, and how the government will finance a $700 million bond payment due in January.

Collective taxi drivers in Honduras announced a plan to raise fares by 5 lempiras (from 25 to 30 lempiras) citing high fuel costs, while seeking government subsidies; sector leader Rigo Cerrato threatened a nationwide strike if authorities do not meet with them by next week.

The central bank auctioned $105.6 million in its currency market on September 17, setting the weighted average exchange rate at L26.8817 per dollar for September 18.

Honduras's unemployment rate climbed to 7.1% and poverty affected 61.1% of households in 2026, according to the National Institute of Statistics survey, driven by reduced activity in manufacturing, agriculture, and food services.

Honduras's net foreign reserves grew by $1.21 billion since January to reach $11.52 billion as of September 14, providing 6.6 months of import coverage, according to the Central Bank.

Dante Mossi, former BCIE president, called on Congress to review how the government has spent 2026 funds and clarify priorities before approving the 455-billion-lempira (about $18.2 billion) 2027 budget, citing concerns over electricity costs, health-sector management, and diesel inflation.

Honduras is projected to receive $13 billion in remittances by year-end 2026—a 20% increase from 2025—but economists warn the country's heavy dependence on this income leaves over 300,000 families vulnerable if the flow declines.

Honduras's proposed 2027 budget of L455.4 billion would grow L11 billion over 2026, but an analyst warns that only 57% of this year's budget has been spent with 71% of the year gone.

Honduras's national university identified four structural failures—remittance dependence, labor informality, low-value exports, and fiscal weakness—and proposed six reform pillars to transform the economy and reduce poverty, which remains stuck at 60% of the population.

Only four of Banasupro's 100 distribution points have eggs available at the agreed price of L95 per carton, two weeks after the government promised nationwide rollout, while market prices remain at L120–150.

Honduras's public debt reached 451.9 billion lempiras (about $18.1 billion) as of August 31, 2026, a 49.3 billion lempira increase from a year earlier, driven by external borrowing from the Inter-American Development Bank and other creditors to finance the central government budget.

The president of Honduras's grain producers association is urging Congress to exempt the 15% tax on grain drying, citing a sharp rise in production costs and the impact on over a million quintals (about 45,000 metric tons) ahead of the September harvest season.

The National Statistics Institute reports that 38.3% of Honduran households lived in extreme poverty in 2025, a slight decline from 40.1% in 2024, though experts say job creation, investment, and reduced crime are needed to lift families out of poverty.

The Central Bank of Honduras auctioned $96.4 million in its September 16 currency sale, establishing a weighted average exchange rate of L26.8805 per dollar for September 17.

Honduras's banking regulator released its 2026 Financial Inclusion Report, highlighting growth in point-of-sale card readers and ATMs as key drivers of broader access to financial services across the country.

Darwin Ponce, head of Honduras's Artículo 19 consumer-protection association, disputed claims of a genuine fuel subsidy, saying the government has not disclosed which budget line funds it and rejected relying on foreign companies for short-term relief instead of pursuing futures purchases and a petroleum stabilization fund.

An analyst from the civil-society group ASJ says public investment is only 45–50% executed by September 2026, and cautions that next year's projected 457 billion lempira budget risks failing to address critical infrastructure gaps in water storage and electricity despite salary and debt increases.

The government raised its subsidy of diesel and regular-gasoline price increases from 50% to 65%, spending about 1.3 billion lempiras (roughly $50 million) to shield consumers and transport from Middle East conflict–driven oil volatility.

The National Agricultural Development Bank (Banadesa) faces overdue loans totaling nearly L3.8 billion—about 50% of its portfolio—including decades-old credits, limiting its financial sustainability and requiring a debt-recovery strategy.

Honduras's pension and housing fund RAP has L3.86 billion (about $155 million) available for home loans this year, with RAP director Juan Carlos Sikaffy saying the fund aims to broaden access to housing credit for affiliated workers.

Recent blackouts stem from multiple power plants not yet connected to the grid, a former ENEE manager said, while warning that extreme heat from a climate pattern called Super Niño and potential water shortages next year could worsen the energy crisis unless idle thermal and renewable units are brought online.

Honduras Central Bank auctioned $82.2 million in its weekly currency auction on September 14, setting the weighted average exchange rate at L26.8830 per dollar for September 15–16.

The Central Bank of Honduras reminds researchers that applications for the Juan Manuel Gálvez Socioeconomic Research Prize close on September 18, 2026 at 11:59 p.m.

Diesel in Honduras reached an all-time high of 148.01 lempiras per gallon after nine consecutive weeks of increases, now exceeding the previous record for premium gasoline and pressuring prices across the economy.

The Asfura administration will submit the 2027 general budget of approximately 457 billion lempiras to Congress on September 14, with lawmakers aiming to approve it before year-end.

Former ENEE general manager Salomón Ordóñez warns that Honduras's largest hydroelectric reservoir has lost 50% of its generating capacity due to drought, with power-sector reform results expected in two to three years.

Remittances to Honduras reached $9 billion in the first eight months of 2026, now equal to 30% of GDP, while foreign direct investment dropped to $881 million in 2025 and poverty remained at 60.1%, creating economic vulnerability, according to analysis by Consulting HNL director Efraín Farach.

The draft 2027 national budget totals 450.4 billion lempiras (about $18 billion), with debt service alone consuming roughly 74.6 billion lempiras (16%), while ten institutions account for about 75% of all spending.

The head of Honduras's petroleum agency says the government's temporary fuel subsidy for September is L33.46 per gallon this week.