Honduras Economy News

Honduras's business confidence index (ICAE) reached 63.8 points in May 2026, its highest level for that month in six years, continuing an upward trend through the first half of the year.

Demand for the Central Bank's short-term reverse-repurchase operations (RVG) continues falling as banks face greater system liquidity and higher relative costs, while interbank market trading (MED) grows as an alternative funding source.

Former Central American Bank president Dante Mossi says Honduras has approved no projects from a $1.6 billion (43 billion lempira) development portfolio offered by the regional bank this year, contrasting with Nicaragua and El Salvador's active borrowing for infrastructure projects.

Finance Vice Minister Lilian Rivera said international lending institutions' backing for state utility ENEE reforms could create opportunities for future financing to strengthen and modernize Honduras's power sector.

The Central Bank's analysts project Honduras's economy will grow 3.6% in 2026 and 3.8% in 2027, within the range set by the 2026–2027 monetary program.

Honduras's central bank forecasts year-over-year inflation of 4.98% by December 2026, declining to the bank's target range of 3.0%–5.0% by May 2028.

Deputy Finance Minister Liliam Rivera said the National Treasury faces critical strain from automatic debt payments linked to lawsuits from the prior administration, combined with obligations to multilateral lenders and a floating debt exceeding 24 billion lempiras (about $960 million).

President Nasry Asfura declared the state power company's financial losses and accumulated debt the country's chief economic concern, pledging to stabilize operations while keeping it publicly owned and freeing resources for health, education, and infrastructure.

The central bank's currency auction on June 15 allocated $78.9 million and established a weighted average exchange rate of L26.6920 per dollar for June 16.

Roberto Lagos, president of Honduras's central bank, says failure to approve an energy sector reform will perpetuate ENEE's structural problems, mounting debt, and operational losses, and has secured backing from international multilateral organizations.

Honduras's average import price for fuel climbed 24.2% month-over-month in April 2026, a slower pace than March's 32.9% increase, tracking crude-oil and derivative prices from the Gulf.

Former Liberal Party leader Yani Rosenthal says fallout from a foreign war has pushed Honduras's inflation beyond the Central Bank's target range, squeezing households and forcing the government to subsidize fuel and energy costs.

CREE commissioner Héctor Corrales said the agency's review of electricity tariffs reflects upward pressure from rising fuel prices, exchange-rate shifts, and increased energy demand.

North America leads Honduras's trade, with the United States alone accounting for 46.4% of exports, followed by Europe at 20.9% and Central America at 20.3%.

Honduras's merchandise exports grew 7.3% in the first half of 2026 compared with a year earlier, driven by higher volumes of coffee and bananas and improved international prices for gold and recycled products.

A consumer-advocacy group reported that at least 16 staple foods rose in price over the weekend, with beans reaching 120 lempiras (about $4.80) per measure and eggs up to 110 lempiras (about $4.40) per carton, alongside price increases in chayote, potatoes, peppers, and broccoli, blamed on weather, inflation, and Middle East conflicts.

Honduras's monthly economic activity index rose 3.5% in the first four months of 2026, driven by stronger agricultural-export sales and increased domestic consumption, the central bank reported.

A former head of Honduras's banking commission warned that new US requirements for remittance senders to prove legal status could cut the flow of family money—which topped $12 billion in 2025 and already exceeds $4.5 billion in 2026—potentially harming multiple sectors of the Honduran economy.

Honduras's net international reserves increased by $1.067 billion from January 27 to June 11, 2026, with import coverage holding steady at 6.6 months of goods and services.

Central Bank President Roberto Lagos said the IMF agreement does not condition approval of Honduras's electricity-sector reforms, characterizing the Fund as providing accompaniment to the government's own policy vision.

Congressman Marco Midence, a former finance minister, warned that climbing oil prices driven by Middle East conflict will push inflation higher in Honduras, urging the government to adopt energy efficiency measures and stabilize food prices through state programs.

Egg prices in Honduras have climbed this weekend to 95 lempiras for large cartons, 90 for medium, and 80 for small, driven by increases in feed and labor expenses.

Private-sector credit in Honduras is expanding faster, driven by declining interest rates and increased lending to businesses, the Central Bank reports.

The Central Bank of Honduras auctioned $68.4 million in its June 12 currency sale, setting a weighted average exchange rate of L26.6855 per dollar for June 13–15.

Women now lead deposit-account ownership in Honduras, underscoring growing female access to financial products, according to the banking regulator's 2025 gender-gap report.

Customs Director Marco Tulio Abadíe said Honduras loses about L1 billion annually to cigarette smuggling, a loss that reduces tax revenue and harms the economy, while only six companies operate under the authorized economic operator program designed to secure trade.

Finance Minister Emilio Hernández and Central Bank President Roberto Lagos signed a letter of intent to the IMF ahead of the June 29 board review, with officials saying approval could unlock about $240 million in fresh funds and help stabilize the economy.

The Central Bank of Honduras auctioned $98.3 million in its foreign-exchange tender on June 16, establishing a weighted-average exchange rate of L26.6946 per dollar for June 17.

Honduras imported 2.99 million barrels of diesel in the first four months of 2026, the largest share and fastest-growing fuel, followed by bunker fuel and premium gasoline at 1.84 million and 1.83 million barrels respectively.

Honduras will see another round of cuts to gasoline, diesel, and kerosene prices starting Monday, marking three straight weeks of fuel-cost declines, with officials suggesting further drops may follow if international market trends persist.