Honduras Economy News

Honduras's shrimp sector, concentrated in Choluteca and Valle departments, maintains steady production and generates $230–$270 million yearly in foreign exchange while supporting roughly 20,000 direct jobs and 100,000 indirect positions across the supply chain.

Honduras's maquiladora sector lost roughly 40,000 jobs in 2025 as companies closed and relocated, even as the government announces a potential 4,000-job textile plant and says a US tariff on Honduran goods is straining competitiveness.

The Attorney General's office says the Economic Reactivation Law has reduced damages awarded in lawsuits against the state by roughly half through settlement agreements between public institutions and plaintiffs.

Cabbage, onions, and beans posted price increases at Tegucigalpa markets this week, with vendors citing low production and warning that bean prices may climb further in August as new harvests arrive.

The head of Honduras's electricity regulator says delays in the Liberal Party's response to proposed power-sector reforms risk prolonging electricity supply problems and preventing competitive bidding processes needed to lower rates.

More than 312,000 vehicle owners have signed up for payment plans under a two-month amnesty that waives fines and interest on registration arrears through August 25, allowing them to catch up on 2025 or earlier vehicle taxes.

Honduras's construction industry supports the National Housing Plan targeting at least 15,000 homes in the short and medium term, but warns that permit delays of up to four years, high material costs, and a shortage of social-housing projects could hinder execution.

Honduras's Central Bank is implementing measures to absorb excess money circulating in the economy and stabilize resources, as inflation reached 5.83% year-over-year in June, while president Roberto Lagos cited supply-driven pressures and limited scope for interest-rate policy.

Honduras's national university economic institute forecasts the lempira will weaken to 27.15 per dollar by end-2026 and 27.98 per dollar by end-2027, a slower pace than 2025's 4.16% decline, while international reserves remain strong at 11.45 billion dollars.

Honduras's Energy Ministry says 378,920 homes — about 15% of the country — lack electricity, with rural areas most affected and infrastructure investment needed to close the gap.

Honduras's basic food basket has climbed to 16,700 lempiras (about $670), far exceeding the 12,000–14,000-lempira minimum wage, prompting economist Wilfredo Girón to warn that deteriorating purchasing power will force more Hondurans to emigrate as poverty deepens.

An economist at the governance think tank ASJ warns that Honduras is using new loans to service about 40% of its existing public debt, a practice that perpetuates debt growth and undermines long-term fiscal sustainability.

ASJ economist Obed García warned that rising energy costs and imported inflation could push Honduras's consumer price index up by 1.4%–3.7%, citing CEPAL projections, and urged the government to boost public and productive investment to cushion household incomes.

Honduras has spent about 950 million lempiras ($38 million) on fuel and electricity subsidies through mid-2026, exceeding the original budget and prompting officials to consider limiting the benefit to lower-income families.

The Central Bank of Honduras allocated $117.6 million in its foreign-exchange auction on July 28, setting the weighted average exchange rate at L26.7902 per US dollar for July 29.

Congressman Hugo Noé Pino of the Libre party warned that the El Niño drought's damage to food production will push inflation above 5% in the second half of 2026, and called for contingency plans to protect food security in hardest-hit regions.

Honduras's net international reserves reached $1.165 billion as of July 24, up from January 27, with import coverage holding steady at 6.6 months.

Housing Minister Francis Argeñal announced a $400 million National Comprehensive Housing Plan, funded by the Latin American Development Bank and administered by the state housing bank Banhprovi, to provide mortgages to eligible families beginning in September.

Honduras imported over $3.06 billion in Chinese goods in 2025—34% technology and equipment, plus metal products and construction materials—widening the trade deficit with China to $3.13 billion as exports remain limited.

A northern Honduras fuel distributor says crude-oil prices will continue climbing for at least two weeks due to Middle East tensions, though he notes price controls are managed through international regulations to prevent sharp spikes in the basic basket and inflation.

The government, agro-industry, and producer associations agreed on a bulk purchase price of 680 lempiras per quintal (about $27 per 100 lb) of white corn for the 2026–2027 agricultural cycle, with agro-industrial buyers committing to purchase 880,000 to 1.4 million quintals.

The National Housing Bank (BANHPROVI) plans to begin distributing L11 billion (about $440 million) in new financing from the Development Bank of Latin America (CAF) for housing projects starting in late September 2026.

The Central Bank of Honduras allocated $95.6 million in its July 27 currency auction, establishing a weighted average exchange rate of L26.7885 per US dollar for July 28.

The National Financial Inclusion Strategy (ENIF) 2025–2030 aims to expand access to bank accounts, digital payments, and formal credit for rural Hondurans, women, and small businesses historically locked out of the formal system.

COHEP's July 2026 regional competitiveness bulletin projects 3.4% economic growth in 2026 backed by remittances, but flags Honduras ranking 95th globally in economic freedom, 119th in innovation among 139 countries, and third worldwide in climate vulnerability.

Honduras's basic food basket has risen to about L16,000 (roughly $640) per month, exceeding the average minimum wage of L14,917, forcing many families to send at least two earners to work just to cover food costs.

The agricultural marketing institute reports Honduras holds 120,000 quintals (about 5,400 metric tons) of beans in reserve and rules out imports for now, citing adequate stocks and new harvests expected within 45 days from multiple regions despite ongoing dry conditions.

Honduras's banking commission (CNBS) is preparing regulations for cryptocurrency and virtual-asset companies through reforms to anti-money-laundering law, aiming to meet international standards ahead of a Financial Action Task Force evaluation in August and prevent illicit fund flows.

Juan Carlos Hernández, president of Honduras's economics association, says family remittances have strengthened household purchasing ability for food, education, and health, and reduced demand for consumer credit.

Finance Minister Emilio Hércules said Honduras placed $815 million in bonds this year—$615 million to manage debt and $200 million for the 2026 budget—while a new sovereign bond carries a 6.40% interest rate, down from 8.65% on the previous issue.