Honduras Economy News

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 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.

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.

Foreign direct investment in Honduras represents less than 1% of GDP—about $223 million last quarter—while remittances account for roughly 27% of GDP, prompting business leaders to urge steps to attract capital and create formal jobs.

Unaffiliated employers can register with Honduras's private pension system (RAP) through September 28 without penalties, back payments, or fees, aiming to expand coverage and let workers access housing loans and retirement benefits.

Diesel fuel reached an all-time high of L145.69 per gallon (about $5.82), surpassing the previous 2022 peak and raising concerns about cascading increases in transport, logistics, and consumer goods prices across Honduras.

Premium gasoline, regular gasoline, diesel, and kerosene prices increased Sept. 7, with diesel climbing L2.46 per gallon to L145.69 (about $5.80) in Tegucigalpa, while domestic cooking gas held steady under government subsidy.

Honduras's official exchange rate climbed to L26.8727 per dollar on September 7, up L0.0077 from Friday, reflecting a slight strengthening of the US currency against the lempira.

Hundreds of job seekers of all ages crowded a La Ceiba employment fair organized by the Chamber of Commerce, labor ministry, and other partners, where 40 companies offered roughly 150 openings across commerce, services, food, and manufacturing—exposing acute unemployment in the Atlantic coast region.

Honduras's economic cabinet will meet with the International Monetary Fund next week in Washington to negotiate a new three-year agreement (2027–2029) as the Asfura administration closes, alongside discussions with the Millennium Challenge Corporation on 2027 funding.

Finance Minister Emilio Hernández announced the 2027 budget totals 457 billion lempiras (about $18.3 billion), a 13-billion-lempira increase from 2026, with priority allocations for education, health, security, and defense.

Honduras's country risk fell to 1.46%, its lowest in more than a decade, though analysts warn that converting the improved financial indicator into private investment and better living conditions remains a major challenge.

Economist Santiago Herrera warns that cancellation of the US Temporary Protected Status for Hondurans could reduce remittance inflows by up to $380 million, threatening households dependent on those transfers and straining the country's ability to reabsorb returned workers.

President Nasry Asfura highlighted the state electricity utility's financial crisis, citing cumulative losses of 118 billion lempiras (about $4.7 billion) as a central challenge facing the administration.

Honduras's Energy Justice Law establishes a three-month amnesty period for users with illegal or tampered electrical connections to voluntarily comply and avoid civil or criminal penalties, after which ENEE and authorities will pursue enforcement.

Two educated Hondurans—a lawyer who returned after studying abroad and an architect who stayed—demonstrate that retaining skilled workers requires domestic opportunities in sectors like special economic zones and international projects.

Finance Minister Emilio Hernández says Honduras may qualify for Millennium Challenge Account funds, though 2025's fiscal challenges—legislative delays, missed economic targets, and payment arrears—could affect eligibility; a cabinet delegation will travel to Washington next week to discuss the account and International Monetary Fund issues.

Economist Liliana Castillo argues the government should hold the 2027 budget flat rather than increase it, citing poor spending execution rates—some agencies executing only 25% of allocations—and low productive investment at just 5% of the budget.

The Régimen de Aportaciones Privadas (RAP), Honduras's private pension fund, expects to hold nearly L50 billion (about $2 billion) in assets by December, all belonging to enrolled workers, and has cut housing-loan rates to 9–10.5% to boost homeownership and construction activity.