Honduras Economy News

The Central Bank set the official exchange rate at 26.8141 lempiras per dollar for buying and 26.9482 for selling on Friday, a slight uptick that carries direct effects on import costs, consumer prices, and the value of remittances received by Honduran families.

Congress approved two loans worth $225 million from the World Bank's International Development Association and the Inter-American Development Bank to support public finances and the national budget, with low interest rates and extended repayment periods.

State institutions have accumulated over 20 billion lempiras (roughly $800 million) in unpaid electricity bills to ENEE, with much of the debt dating back more than 15 years; the utility is auditing its accounts receivable and also grappling with 34% energy losses due partly to theft.

Honduras unveiled a 2026–2030 incentive strategy for agriculture with FAO support, aiming to attract investment, create jobs, incorporate technology, and boost competitiveness in a sector that contributes 13% of GDP and over a third of exports.

BCH president Roberto Lagos projects inflation will continue easing to about 5.5% in August from nearly 6%, while international reserves reached a record $11.7 billion, equivalent to seven months of import coverage and strengthening financial stability.

Honduras's Financial Relief Law for agricultural producers took effect, allowing farmers, rice growers, salt producers, and shrimp farmers to refinance debts at a maximum interest rate of 2% annually over up to 15 years through Banadesa and Senprende.

The US dollar strengthened to 26.81 lempiras at purchase and 26.94 at sale on August 6, according to the Central Bank's official rate, affecting imports, prices, and remittances to Honduran families.

Honduras officially launched its 2026 national census, using digital mapping and geolocation to collect population and housing data that will guide public investment toward municipalities with the greatest needs.

Congress approved budget amendments requiring telecom operators to contribute 1% of monthly revenue to fund internet access in public schools, while also allowing the military's textile industry direct procurement and ordering ministries to purge duplicate payroll positions.

The private-sector council COHEP warns that rising fuel, energy, and input costs are accelerating company closures, with about 80% of microenterprises failing within five years and leadership transitions adding further risk.

The Cortés Chamber of Commerce president cited a sharp trade deficit with China—Honduras imports about $210 million monthly in Chinese goods while exporting far less—and called for equal competitive conditions and enforcement of tax and labor laws for all foreign investors.

The National Congress established a special commission to develop legislative reforms for Honduras's shrimp industry, which employs 25,000 directly and 100,000 indirectly but has lost over 10,000 jobs since Taiwan relations ended and production costs rose.

A 14-member Honduran delegation of government officials and private-sector representatives is in Israel to study water management, drip-irrigation systems, and dairy-production technologies to address El Niño drought impacts, following President Nasry Asfura's January visit to Israeli Prime Minister Benjamin Netanyahu.

President Asfura said new energy legislation would allow large businesses and industries to negotiate power purchases directly with generators rather than rely solely on state supply, aiming to lower costs and attract investment.

The Central Bank of Honduras forecasts full-year 2026 GDP growth of 3 to 4 percent, supported by agricultural exports and household consumption, though the outlook depends heavily on global oil and coffee prices and international trade tensions.

Honduras's international reserves rose $1.26 billion to $11.56 billion in the first six months of 2026, a gain President Asfura credits to fiscal discipline and responsible management of public resources.

The Central Bank of Honduras auctioned $96.2 million in its August 3 currency sale, setting the weighted average exchange rate at L26.8003 per dollar for August 4.

Lawmakers are negotiating a bill to rescue the troubled state electrical utility ENEE and modernize its aging infrastructure, with Congress leadership saying a formal vote could come this week or next.

Honduras's net international reserves reached $11.7 billion as of July 31, up $1.4 billion since late January, providing 6.8 months of import coverage, the central bank reported.

About 50 restaurants closed nationwide in July as rising costs for utilities, supplies, and labor combined with weak consumer demand and municipal red tape, threatening roughly 2,000 jobs, the Gastronomic Association of Honduras says.

Diesel prices have surged 69.8% since January to L141.67 per gallon and premium gasoline 49.6%, with another increase taking effect August 3 that economists warn will drive up transport and food costs.

Red beans jumped 5 lempiras to 110–116 lempiras per measure at Tegucigalpa's Feria del Estadio market this week, with producers warning of further increases in about three weeks as the new harvest arrives; onions, beets, corn, pataste (chayote squash), and cauliflower also rose due to low supply from prolonged dry weather.

Starting August 3, Honduras will undergo its first anti-money-laundering assessment in a decade by Gafilat (the Latin American Financial Action Group), with results affecting investor confidence and the risk of being placed on the international Financial Action Task Force's grey list.

Gremipe, the micro and small business association, warns that about 30,000 microenterprises have shut down nationwide so far this year, costing roughly 80,000 jobs, with power outages and rising production costs blamed for the closures.

Honduras's basic basket of essential goods has climbed to around L17,000 (about $680) in 2026, driven by a 24% increase in electricity rates and volatile fuel prices that consumer advocates say are pushing food staples out of reach for poor Hondurans.

The Energy Ministry warned that fuel prices in Honduras will continue rising for the next three weeks due to international market volatility and crude oil prices hovering around $90 per barrel, with increases likely to push up transportation costs and basic goods prices.

The UN Food and Agriculture Organization called on Central American countries to strengthen strategic grain reserves to protect food security during the expected 2026–2027 El Niño, which forecasters say will bring reduced rainfall, more frequent droughts, and crop damage across the region.

The Energy Ministry announced price increases for gasoline, diesel, and kerosene effective Monday, August 3, with diesel and kerosene seeing the largest jumps; domestic cooking gas remains subsidized.

The city of San Pedro Sula distributed equipment and supplies to 150 entrepreneurs across neighborhoods including Las Brisas, Bográn, and Chamelecón through its Capital Semilla program, paired with training in financial literacy, business planning, and digital marketing.

A new CEPAL report shows Latin America received $194.2 billion in foreign investment in 2025, but Honduras failed to rank among the region's top destinations while Brazil, Mexico, and Costa Rica captured most flows as global supply chains shift.