Honduras Economy News

Honduras has again been listed as a candidate country for Millennium Challenge Corporation funding in 2027, a US-backed program supporting governance and economic development, according to CCIT vice president Enrique Jaar.

Honduras's government and poultry producers, representing 80% of national output, agreed to cut the price of a carton of eggs to 95 lempiras (about $3.80) at Banasupro stores nationwide and 104 lempiras (about $4.15) at Mercado Zonal Belén, with monthly cost reviews to follow.

Mayors from Lempira municipalities reported 100% crop losses from ongoing drought and traveled to Tegucigalpa seeking government relief, while the national farm federation warned Honduras should be declared in emergency.

The electrical regulator (CREE) is expected to approve a 17% rate increase on September 30, but a six-month rate freeze and state subsidies enacted by Congress will prevent the increase from reaching residential and vulnerable consumers.

Honduras's agricultural sector is reporting significant losses from adverse weather, with corn production down roughly 30% across evaluated plots and livestock output declining 10–40%; the Agriculture Ministry is distributing 20 million lempiras (about $800,000) in feed aid and crop incentives to affected farmers and ranchers.

The head of Honduras's small-business chamber, Victorino Carranza, called on Congress's recent electricity system reforms to cut operating costs for micro and small enterprises, saying companies should pay only for energy consumed and that unpredictable rates now hamper financial planning.

Honduras suffers over 165 hours of blackouts yearly—versus fewer than 9 in El Salvador—costing businesses more than $100 million annually, and analysts warn the new Energy Justice Law's impact depends on institutional capacity to implement it.

Thomas R. Hardy, operations director of the U.S. Trade and Development Agency, said energy-sector reform and infrastructure projects linking Honduras's Atlantic and Pacific coasts are essential to drawing American investment and strengthening the country's economy.

The electricity regulator warns Honduras risks power rationing next year unless it rapidly adds new generation capacity through competitive bidding, which it says—not tax breaks—will lower energy costs.

Economic Development Minister Eddy Ordóñez warned merchants and producers that those unable to justify recent egg-carton price increases above 14 lempiras face fines of 1,000 to 10,000 minimum wages and possible month-long business closures.

Agriculture Minister Moisés Molina says Honduras faces no food shortage and markets are adequately stocked despite recent weather damage, with new harvests expected from mid-September onward.

Cohep president Anabel Gallardo said legal and economic uncertainty is a major barrier to attracting investment and formal employment, citing losses in the power sector, flaws in part-time labor law, and the need for job creation to retain Hondurans rather than rely on migration and remittances.

Honduras's new Energy Justice Law temporarily freezes ENEE electricity rates for six months, allows eligible low-income households to seek forgiveness of accumulated debts up to 250 kWh monthly consumption, and creates tax breaks for residential solar-panel systems.

Sergio Zepeda, director of the UNAH's Institute for Economic and Social Research, called on the government to prioritize education, health, and productive investment in the 2027 budget draft due to Congress by September 15, arguing that spending must support development, not just cover operating costs.

The Honduran lempira has weakened past 27 per dollar, raising costs for basic goods, fuel, medicines, and utilities in an import-dependent economy where domestic production cannot meet demand.

Finance Secretary Emilio Hernández Hércules said the government will send its 2027 budget proposal to Congress on September 14, aiming to maintain a 1.0% fiscal deficit under the Fiscal Responsibility Law and avoid unsustainable debt.

Families in San Pedro Sula need L4,500–L5,500 weekly (about $180–$220) for food, transport, and basic household needs, forcing residents to cut purchases and skip meat as inflation erodes purchasing power.

An economist argues the Central Bank's strategy of allowing lempira devaluation to accumulate international reserves is driving inflation and eroding household purchasing power, despite reserves of $11.5 billion being ample to stabilize the currency.

More than 1,400 formal businesses have shut down and registered with Honduras's tax authority (SAR) since 2022, with 200 closures occurring so far this year, concentrated in Francisco Morazán, Cortés, and Comayagua departments.

The Catholic Diocese of La Ceiba is proposing to convert the shuttered English Quarter prison—closed in January 2024 and now deteriorating—into a temporary farmers and artisans market while authorities decide the site's permanent use, with local church and municipal leaders expressing support.

BCH President Roberto Lagos and Paraguay's central bank chief Carlos Carvallo addressed questions on inflation and monetary policy during the Central Bank of Honduras's annual Economic Perspectives Conference in Tegucigalpa.

Economist Henry Rodríguez projects the lempira will weaken to 27.20–27.25 per dollar by year-end and urges Honduras to strengthen domestic production and tighten monetary policy to combat devaluation that drives up consumer prices.

Egg prices in Honduras have jumped another 14 lempiras, now reaching up to 130 lempiras (about $5.20) per carton in Tegucigalpa markets, straining household budgets as a key protein source becomes less affordable.

A CEPAL report ranks Honduras 125th globally on frontier-technology readiness, with its weakest scores in workforce skills (145th) and industrial capacity (133rd), though it ranks a surprising 38th in financing.

Prices for basic produce at Roatán's El Lempirita market jumped sharply this week—tomatoes up to 15 lempiras per pound, onions to 40 lempiras—as vendors report plummeting sales because consumers are cutting back amid higher costs for water, farm inputs, and fuel.

The US dollar reached L27.00 per dollar, extending lempira weakness that economists warn will raise prices for imported goods, fuel, and agricultural inputs across Honduras's economy.

The Agricultural Ministry is rushing to georeference over 50% of Honduras's coffee farms by year-end to meet European traceability standards and secure market access, protecting income for 120,000 farming families as the current harvest approaches 7.3 million quintals (about 330,000 metric tons).

Honduras's Energy Ministry announced new fuel prices effective August 31, with gasoline declining slightly in San Pedro Sula and Tegucigalpa while diesel rises with a temporary government subsidy of L1.86–L1.95 per gallon.

The banking regulator CNBS is offering a free webinar on August 31 about household financial communication, savings strategies, and shared money goals for families.

Congress approved a waiver of late-payment interest on personal loans issued by Injupemp, Honduras's civil-service pension fund, to borrowers from June 2014 through June 2025; eligible participants have six months to apply.