Honduras Economy News

The Agriculture Ministry convened dairy-industry leaders to review production challenges, market stability, and supply strategies, with officials reporting that Honduras produces roughly 1.7 million liters of milk daily and prices remain stable through July.

The Central Bank of Honduras announced measures to reduce inflation, which reached 5.83% in June, by increasing open-market operations to drain excess money from the financial system starting in August, aiming to return inflation to its 4% target by year-end.

Honduras's labor federations say they will immediately seek a minimum-wage adjustment if inflation reaches 7%, invoking a safeguard clause in the current wage agreement, citing rising fuel and food costs eroding workers' purchasing power.

The Housing Ministry unveiled a 10-year subsidy plan offering grants of up to L82,500 (about $3,300) and monthly payment reductions to help low-income families qualify for mortgages and afford monthly payments on social housing.

Honduras's central bank raised its forecast for family remittances to grow 7% in 2026 (to $13.16 billion) and maintained a 3–4% economic growth outlook, though inflation and currency depreciation continue to pressure household purchasing power.

A 10% US tariff on Honduran imports expires July 24, and while an economist says he hopes the United States will lift the duties to strengthen trade relations, he warns that the Trump administration may pursue new protectionist measures that could raise consumer prices.

Honduras's Part-Time Employment Law, approved in March 2026 with promised creation of 40,000 jobs, has generated only 59 registered contracts as of June, prompting officials and ruling-party lawmakers to acknowledge the law has failed to meet expectations.

Honduras's central bank allocated $90.8 million in its July 20 foreign-exchange auction, setting the weighted average exchange rate at L26.7638 per dollar for July 21.

Honduras's net international reserves have accumulated $1.25 billion since January 27, the Central Bank reported as of July 17, with import coverage holding steady at 6.7 months.

The Central Bank of Honduras is updating and relaxing the deadlines for exporters to bring foreign-currency earnings back into the country, aiming to simplify operations for the export sector.

The Central Bank of Honduras says the country's macroeconomic conditions remain positive despite a complex international environment.

Honduras's state housing bank Banhprovi has only 300 million lempiras (about $12 million) available for first-tier lending and zero fresh funds for second-tier lending, constraining mortgage credit for families and limiting construction projects amid an estimated 1.6 million housing deficit.

The director of Honduras's petroleum distributors association warns that fuel prices are expected to rise next week and recommends Hondurans reactivate conservation measures, citing volatile international market conditions.

The government announced imports of beans from Brazil, Nicaragua, and Paraguay to prevent shortages affecting 1.7 million people facing food insecurity, but an agricultural anthropologist warns the strategy undermines local farmers and discourages domestic production.

Gasoline, diesel, and kerosene prices increased across Honduras starting July 20, with sector officials attributing the hikes to Middle East instability affecting global oil supplies and urging consumers to adopt fuel-saving measures.

Anthropologist Mario Ardón argues that Honduras should invest in 10–30 year agricultural policy leveraging the country's diverse microclimates and hillside farming, rather than importing beans and grains, to address food insecurity affecting roughly 1.7 million Hondurans.

The government's Social Development Ministry has allocated an average of 92 million lempiras (about $3.7 million) in food assistance to vulnerable communities nationwide, with continued distribution this week in the drought-prone Dry Corridor region.

Economist Ismael Zepeda warns that each cent of lempira depreciation against the dollar directly raises costs for food, fuel, and services; the currency has weakened 1.5% in the first half of 2026, nearing 27 lempiras per dollar.

The Agriculture Ministry called together the National Dairy Commission to review milk-sector conditions, price trends, and develop joint strategies between producers and industry to ensure steady national milk supply.

Economist Alex Baquis said Honduras is watching closely for any agreement with the International Monetary Fund, as decisions reached could significantly influence the country's economic direction.

Restaurants and comedores in the capital are selling tortillas for up to L2 (about $0.08) per unit, double the regulated maximum price of L1, while tortilla factories say they sell to retailers at L0.67, leaving consumer-protection authorities to enforce compliance.

Cohpetrol warns that escalating military tensions between the United States and Iran, combined with threats to close the Red Sea strait and disruptions at the Strait of Hormuz, could sustain upward pressure on international oil prices and keep Honduras's fuel costs elevated.

At Tegucigalpa's Farmers and Artisans Fair this weekend, three basic-basket staples posted price increases while ten items saw price cuts.

Honduras's trade deficit in goods reached $2.98 billion through May 2026, up 12.8% year-over-year, driven by rising imports and a decline in maquila (assembly-for-export) trade.

Honduras's general-merchandise imports increased by $660 million, driven mainly by higher purchases of fuel, transport equipment, and industrial supplies that accounted for $629.6 million of the gain.

The Central Bank of Honduras auctioned $84.4 million in US dollars on July 17, setting a weighted average exchange rate of L26.7657 per dollar for July 18–20.

Honduras imported 12.3 million barrels of fuel through May 2026, with fuel distributors accounting for 74.8%, thermal power generators for 14.1%, and other importers for the remainder.

Diesel and kerosene prices rose 47.8% and 41.5% respectively from January through May 2026 compared to the same period last year, though both fuels declined month-over-month in May.

Honduras's average fuel-import cost reached $133.53 per barrel in May 2026, up 2.9% from April but marking a slowdown from the steep gains in March and April.

The Central Bank of Honduras released its updated 2026–2027 monetary program, projecting inflation will converge to its 4.0% ± 1 percentage-point target by December 2026 and tightening money-supply measures to combat price pressures that reached 5.83% in June.