Honduras Economy News

Honduras's central bank says higher net foreign reserves expanded money supply through currency conversion, but officials have partially offset that expansion by absorbing liquidity from the financial system.

Honduras's banking sector continues to strengthen as private deposits rise, driven by economic activity and robust family remittances, the central bank reports.

Honduras's central bank reported strengthened foreign-exchange reserves driven by sustained inflows of family remittances and revenues from goods and services exports.

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.

The Central Bank of Honduras auctioned $112.1 million in a foreign-exchange sale on July 21, setting a weighted average exchange rate of L26.7744 per dollar for July 22.

Economist Julio Raudales says the Central Bank of Honduras's inflation target of 5–6% is reachable if monetary policy remains disciplined and external shocks do not occur, though he cautions that balancing price control with economic growth remains a key challenge.

Economist Ismael Zepeda says the Central Bank will struggle to control inflation through monetary policy given international conflicts raising fuel costs and a planned electricity rate increase in the third quarter, though the bank aims to absorb excess money supply and cut monetary emissions by 11%.

Active interest rates on business loans have decelerated across commerce, industry, and services, tracking softer deposit rates, according to Central Bank data.

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.

The research organization Sendas called for energy-sector reform to be built on political independence, reduced technical losses, financial recovery, greater market competition, and accountable leadership to address ENEE's structural crisis, which cost the utility about $530 million in uncollected revenue during 2025.

Honduras's Property Institute is collecting annual vehicle registration fees on a staggered schedule through December, with an amnesty allowing owners to catch up on 2025 and earlier unpaid fees without penalties, while projecting revenue of L5.4 billion (about $216 million).

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 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.

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.

Economic Development Minister Eddy Ordóñez said Honduras hopes the United States will hold tariffs steady or reduce them when current rates expire on July 24, and noted the government has removed non-tariff barriers and approved a forced-labor ban to support bilateral negotiations.

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.