Honduras Economy News

Foreign direct investment in Honduras reached $675.8 million in the first half of 2026, up 67.4% year-on-year, according to COHEP's October economic bulletin, which also shows 4.4% GDP growth and 6.28% annual inflation.

Honduras presented a 2026–2030 national plan to reduce workplace accidents and diseases, modernize safety standards, and expand protection especially for informal-sector workers, following an International Labour Organization diagnosis identifying coordination and coverage gaps.

Following an IMF recommendation, Honduras's central bank will progressively reopen the interbank foreign-exchange market, allowing private banks to manage a portion of currency trading, with authorities still determining the initial percentage and success depending on exchange-rate stability.

The STENEE electrical workers' union says the International Monetary Fund's evaluation of Honduras should build on the recent power-sector reform law, which the union argues removed legal barriers to needed institutional investment and allowed ENEE to establish internal oversight and a structured loss-reduction plan.

Former Finance Minister Christian Duarte cautioned that the proposed 2027 budget cuts productive investment by 8 billion lempiras (about $320 million) while raising payroll spending, risking economic harm for Hondurans.

An estimated 80% of Honduran farmers operate outside the formal economy, leaving them unable to access regulated credit and forcing many to rely on informal lenders at unfavorable rates, a business leader says.

Honduras is defending 12 cases before the International Centre for the Settlement of Investment Disputes (ICSID) representing about $4.2 billion in claims, with the largest being Honduras Próspera's $1.6 billion lawsuit following the government's cancellation of the special economic zone regime.

A Fosdeh economist cautioned that Honduras's return to an interbank foreign-exchange market could enable dollar hoarding and price spikes unless the central bank imposes safeguards, noting that five financial institutions already control 80% of the country's currency trade.

The Honduran petroleum distributors' association forecasts price drops for gasoline and diesel in the coming weeks, citing declining international refined-fuel markets despite crude oil exceeding $100 per barrel.

The head of Honduras's national business association says fuel subsidies do not solve the country's vulnerability to global oil-price swings and calls for structural measures—better public transit, revised work schedules, and a long-term energy strategy—to reduce fuel consumption and protect the economy.

Honduras's commercial banks have kept lending and deposit rates unchanged despite the Central Bank raising its policy rate, according to a BCH statement.

Honduras's agriculture, fishing, forestry, and livestock sector grew 4.8%, led by crops of coffee, bananas, and fruit, with additional gains from shrimp and tilapia fishing, livestock, and poultry.

The Central Bank of Honduras auctioned $113.1 million in its October 20 currency sale, setting a weighted average exchange rate of L26.8934 per dollar for October 21.

An International Monetary Fund delegation opened the sixth and final review of Honduras's economic program through November 2, assessing the government's compliance with commitments on macroeconomic indicators, public finances, energy-sector losses, and anti-money-laundering reforms.

Honduras's bakers say production costs have risen 30% due to higher prices for flour, shortening, fuel, and electricity, and may raise bread prices starting in November to preserve product quality.

Honduras received $10.1 billion in family remittances in the first nine months of 2026, a 11.2% increase from the same period in 2025, with the funds representing over a quarter of the country's GDP and the primary source of foreign currency.

Honduras's regulated financial system reported 8.06 million active deposit accounts at the end of 2025, expanding access to banking services and formal-sector participation for Hondurans.

René Alfaro, a former ENEE administrator, says Honduras's energy reforms have not yet produced tangible results and warns that tying financing to five-year loss-reduction targets lacks technical clarity and could hamper the state power utility's recovery.

An International Monetary Fund mission has started the sixth and final review of the economic agreement Honduras signed with the IMF in 2023, ahead of negotiations for a new program.

Honduras's state power utility will forgive 100% of accumulated electricity debt—including penalties and interest—for low-income residential customers with average monthly consumption up to 250 kWh, under Article 20 of the Energy Justice Law approved in August.

Three weeks after Honduras's new Energy Justice Law took effect, a monitoring report finds only one of 42 required tasks completed, with losses at the state utility ENEE rising to 34.4% and a critical energy auction delayed to early 2027.

A think tank analyzing Honduras's new energy law found that freezing electricity rates through March 2027 would cost about L6 billion (roughly $240 million), with the richest 10% of customers capturing 65% of the savings while low-income households receive only 9%.

Honduras's state electricity utility ENEE has begun forgiving accumulated electric bills, penalties, and interest for low-income residential customers with monthly consumption of 250 kilowatt-hours or less, applying the Energy Justice Law.

Honduras is reactivating an interbank foreign-exchange market that allows commercial banks to trade dollars directly rather than channeling all sales through the central bank, though economists warn it could pressure the exchange rate and international reserves if a few banks dominate or if December import demand spikes.

Economist Rubén Darío Sorto warns that Honduras's diplomatic switch to mainland China has disrupted retail trade, calling the resulting shift in the trade balance with China 'brutal' for the Honduran economy.

Honduran salaried employees can request refunds of excess income tax (ISR) withheld from their paychecks through the tax authority (SAR) by submitting required documents including pay stubs, proof of withholding, and a formal application.

Honduras's Economic Cabinet opened the sixth and final review of its 2023–2026 IMF agreement with a technical mission through November 2, evaluating compliance with economic targets and structural reforms; approval would unlock $120 million and pave the way for a new 2027–2030 accord.

An ASJ watchdog report warns that energy losses at Honduras's state power company have risen to 34.4%, a major 1,500-megawatt energy tender already delayed to 2027 risks supply shortages, and the three successor companies can absorb only a fifth of a 143.8-billion-lempira debt.

The Central Bank of Honduras auctioned $85.4 million in its October 19 currency sale, setting a weighted average exchange rate of L26.8936 per dollar for October 20.

The National Vocational Institute (INFOP) is holding a job fair at its Miraflores campus in Tegucigalpa from 8 a.m. to 5 p.m., connecting jobseekers with employment and professional-development opportunities.