Honduras Economy News

Dante Mossi, former president of the Central American Bank for Economic Integration, criticized a proposed reform excluding bonuses from income-tax calculations, warning it could enable employers to reclassify wages as tax-free bonuses and erode government revenue.

Tradable goods prices in Honduras increased 0.81% month-over-month in May, driven by external shocks from geopolitical factors that pushed up fuel prices.

Honduras's power regulator confirmed a third-quarter rate increase taking effect July 1, driven by higher generation costs, fuel prices, and lempira depreciation; the exact percentage will be announced within days.

Year-over-year inflation in Honduras reached 6.09% in May, driven partly by Middle East conflict impacts, temporarily exceeding the central bank's medium-term tolerance range of 4.00% plus or minus 1 percentage point.

The head of the Cortés Chamber of Commerce warned that a new increase to electricity rates will reduce competitiveness in the industrial region.

The Central Bank auctioned $95.3 million on June 9, setting the official exchange rate at L26.6844 per dollar for June 10.

A Fosdeh economist argues that measures now being negotiated to stabilize Honduras's state electric utility must become permanent policy to prevent future administrations from reversing reforms, as has happened repeatedly.

Honduras's fuel subsidy has already cost 860 million lempiras (about $34.5 million) against a budgeted 680 million, with full-year costs projected at 1.2–1.3 billion lempiras, prompting the Finance Ministry to plan internal budget adjustments and consider narrowing the subsidy to lower-income households.

The Central Bank reported private-sector savings surpassed 681.7 billion lempiras as of late May 2026, up 13.9% year-over-year, driven primarily by household deposits and growing confidence in the financial system.

The central bank reports that credit to Honduras's private sector continues expanding, fueled by rising demand for business financing tied to stronger investment and economic activity.

Honduras's foreign-exchange inflows are growing faster than outflows, creating a positive gap driven mainly by family remittances and exports of goods and services, the Central Bank said.

Finance Minister Emilio Hércules announced that Honduras will meet with the IMF's executive board on June 29, and said he hopes the board will issue a favorable communiqué for the country.

Congress is considering a reform to exclude performance bonuses, gratuities, and overtime pay from income-tax calculations, a move an economist says would reward worker effort but warns could enable tax evasion without proper state oversight.

Academic research indicates that more than 500,000 older adults in Honduras currently live in poverty, according to Radio HRN.

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.

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.