Honduras Economy News

Honduras rejoined the international investment arbitration system on August 16, facing between 14 and 18 pending claims — most valued at 1.6 billion to 2.5 billion lempiras (roughly $64–$100 million) each — with the largest, Próspera's suit, now standing at about $1.63 billion after being reduced from an initial $10.8 billion claim.

A TuNota analysis finds that Próspera's earlier employment figure of 3,480 jobs mixed direct and indirect positions, with a later revision to 974 jobs—a 72.8% drop the developer attributes to legal uncertainty, though public data do not isolate the causes or allow independent verification.

Honduras's official dollar exchange rate climbed to L26.8368 (buy) and L26.9710 (sell) on August 20, continuing a week-long upward trend that has seen the lempira depreciate by roughly L0.009 since Monday.

A UNAH economist warns that termination of Temporary Protected Status for approximately 50,000 Hondurans in the US could result in a gradual decline in remittances, potentially totaling $200 million annually if affected migrants lose formal employment and income capacity.

A National Congress member from Yoro requested urgent intervention from the Agriculture Ministry to address severe drought in the Alto Aguán region of Olanchito, where lack of rainfall has depleted livestock feed and threatened cattle producers' livelihoods.

A Central Bank of Honduras survey finds that 85% of Hondurans sending remittances home live in the US, over half have been abroad at least 16 years, and they send an average of $506 monthly.

Economist Julio Raudales, former president of the Honduran Economists' College, notes that poverty in Honduras has remained at roughly 63% since 2001, questioning what progress has been made despite 25 years of Temporary Protected Status for Hondurans in the US.

Honduras received $6.52 billion in remittances in the first six months of 2026, a 12.3% increase from the same period in 2025, according to the International Organization for Migration.

Honduras ranks third in Central America for residential electricity costs at $0.236 per kilowatt-hour, but economists say the true cost to users and public finances is far higher due to losses at the state utility Enee, debt servicing, and an incomplete energy-sector reform.

Internal documents from the agricultural development bank Banadesa reveal a July 2026 credit committee meeting convened for only three loan applications totaling L31.7 million (about $1.27 million), including L7.8 million (about $312,000) to a man with political and family ties to the bank's president.

Standard & Poor's is conducting a periodic review of Honduras's sovereign credit rating on August 18–19, meeting with President Asfura, Congress members, and the private sector to assess the government's fiscal, economic, and institutional conditions.

The Agriculture Ministry projects rice production of 700,000 quintals (about 31,500 metric tons) in the near term, a 40% increase from 2025's roughly 500,000 quintals, as part of a strategy to reduce dependence on imports that currently supply over five million of the six million quintals Honduras consumes annually.

The Energy Ministry raised diesel prices by L 3.73–3.89 per gallon and kerosene by L 2.46–2.62 per gallon nationwide starting August 17, part of consecutive weeks of fuel increases affecting transport, industry, and agriculture.

Honduras has exported 7.18 million quintals (about 323,000 metric tons) of coffee so far this harvest season, surpassing the previous record and projecting total foreign-exchange earnings from coffee to reach historic levels of around $2.35 billion.

Five staple foods rose in price this week at Tegucigalpa's Farmers Market—including red onions (L30/lb), cabbage (L40), and beef (L98/lb)—while broccoli, yellow onions, corn, and chayote squash fell.

The maquila industry generates about 130,000 jobs, contributes 45–50% of Honduras's gross exports, and projects $5.5 billion in shipments for 2026, though sector leaders say stronger investment climate and security are needed to sustain growth.

Basic-food prices at Roatán's Farmers Market remained relatively stable this week, with beans and eggs holding firm, some vegetables declining, and beef prices rising slightly as merchants reflected broader market pressures.

Five vegetables in Tegucigalpa's Farmers Market accumulated L30 in price increases, and several beef cuts rose by up to four lempiras per pound this week, driven by extreme drought affecting crop and livestock production.

Economist Amparo Canales says the lempira has depreciated 1.69% against the US dollar so far in 2026, raising import costs for fuel, medicines, and production inputs and potentially pushing consumer prices higher.

The Energy Ministry announced increases in premium gasoline, regular gasoline, diesel, and kerosene effective August 17, with diesel seeing the largest jump, while domestic cooking gas holds steady and vehicular LPG will fall slightly.

Honduras's official cost-of-living measure now includes 405 items—housing, utilities, transportation, healthcare, and digital services—reflecting the true expenses Honduran families face beyond groceries.

The European Union is requiring Honduran palm-oil producers to prove via geolocation tracking and environmental compliance that their crops come from non-deforested areas to maintain and expand access to European markets under new EU regulations taking effect later this year.

Anabel Gallardo, president of Honduras's business council (Cohep), warned that chronic electricity shortages and lack of legal certainty continue to discourage foreign investment and job creation in the country.

A labor-union leader warns that 2.5 million Hondurans lack adequate food despite reported macroeconomic growth, arguing low wages and weak job prospects drive mass migration and leave the country competing with Haiti on poverty measures.

The Central Bank of Honduras auctioned $92.3 million in its daily currency offering on August 13, setting the weighted average exchange rate at L26.8230 per dollar for August 14.

The Finance Ministry has set preliminary budget allocations for government institutions as they prepare the 2027 General Budget proposal, due to Congress by September 14, with Finance Minister Emilio Hernández Hércules stressing the need to accelerate public investment execution this year.

Cohep, Honduras's main private-sector organization, rejected any involvement in a National Congress member Adolfo Ráquel's electricity-sector reform proposal, saying it has not reviewed or endorsed the initiative and will not be held responsible for its technical, legal, or financial implications.

President Nasry Asfura called on Congress to approve energy-sector reforms aimed at reducing financial losses at the state-run electricity utility ENEE.

The European Union will provide 8 million euros (about $9.2 million) to support Honduras's electricity reforms and leverage additional energy investments, while expanding civil-society participation in its cooperation projects.

Honduras's electric regulator (CREE) published a comparative analysis of the electric-sector reform bill showing how negotiations between the President, Congress, and the Liberal Party shifted the final version approved on August 12, with added restrictions on state utility ENEE.