Honduras Economy News

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 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.

Honduras's financial-intermediation sector grew 11.9% through May 2026, driven by increased lending to services, agriculture, manufacturing, construction, and consumer spending, boosting bank interest and commission income.

Honduras's IMAE economic index rose 3.3% in the first five months of 2026, driven by credit expansion and rising demand for some agricultural goods, despite global pressure from rising input costs.

Transport union leader Wilmer Cálix said the government must pay a pending compensation bonus to keep urban bus fares unchanged; without it, the sector will seek a fare increase to cover rising diesel and parts costs.

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.

Honduras's merchandise exports reached $3.8 billion in May 2026, up 12% year-over-year, driven by higher volumes of coffee, recycled products, and bananas.

Honduras's agricultural sector expanded 4.5%, driven by increased coffee, banana, fruit, and palm oil production, while fishing grew on higher shrimp and tilapia exports.

Transport union leader Wilmer Cálix says the government owes the sector L200 million (about $8 million) in compensatory bonuses—four months in San Pedro Sula and three in Tegucigalpa—and warned that without payment, drivers will need to work with authorities on operational changes to avoid service disruptions amid rising fuel costs.

Juliette Handal, president of the Patriotic and Solidarity Coalition, called on the government to meet with business sectors to prevent them from raising prices in response to fuel-cost pressures.

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.

At Roatán's Kennedy neighborhood market, cassava, potatoes, and chayote squash all rose in price, as did soap and detergent, even as egg cartons held steady at 98 lempiras (about $4).

Labor leader Hilario Espinoza said inspectors are distributed nationwide to verify employers are paying the legal minimum wage, though he acknowledged enforcement challenges and noted inflation has risen to 6%, approaching the 7% threshold that would trigger wage renegotiation.

Family remittances to Honduras reached $6.59 billion in the first half of 2026, a 11.9% jump from the same period last year and above the Central Bank's projected 3.5% growth; if the trend holds, annual remittances may exceed $13.5 billion.

The head of Honduras's transit authority said if fuel prices continue declining, the agency will review taxi fares to determine possible rate reductions for passengers.

Honduras's Energy Ministry announced new fuel prices effective July 20, with kerosene and diesel rising by about L1.29–L1.37 per gallon while vehicle LPG falls slightly and domestic LPG and regular gasoline stay frozen under temporary subsidies.

Coffee grower Fredy Pastrana warns that Honduras's coffee industry is losing production due to a shortage of pickers, exacerbated by poor road conditions and lack of basic services in coffee-growing areas, and calls for policies to make farm work more attractive.

The Central Bank of Honduras will take its digital portal offline on Saturday, July 18, and Sunday, July 19, for system improvements, resuming normal service Monday, July 20.

Honduras is projected to export more than 7 million 100-pound sacks of coffee this season, generating $2.2–2.3 billion in revenue, boosted by strong international prices and demand from the US and Europe, though financing and infrastructure remain key challenges for the sector.

Honduras will host the Central American Beekeeping Congress from July 22–24 in Comayagua, bringing together producers and specialists from seven countries to share techniques and technologies; the country's 3,800 organized beekeepers manage about 40,000 hives and produce over 800,000 kg of honey annually.

Remittances to Honduras rose 13.2% to $5.29 billion in the first five months of 2026, the fastest growth among the three Northern Triangle countries, according to International Organization for Migration data.

The president of Tegucigalpa's Chamber of Commerce and Industries says Honduras's newly approved part-time employment law is a step forward but contains ambiguities that limit its effectiveness, and urges government, Congress, and stakeholders to form a dialogue table to strengthen and clarify the law through consensus.

Customs revenue from import duties (DAI) surged 18% year-over-year, reflecting stronger commercial activity and modernization efforts by the Customs Administration to streamline procedures and reduce processing times.

Eastern Honduras onion producers, numbering about 3,000, warn they will resume street protests if the government does not enforce an agreement that limits imports and protects domestic growers from falling prices and lost sales.