Honduras Economy News

A UNAH researcher warns that 750,000 Hondurans face severe food insecurity in July–August, while 1.4 million more experience moderate insecurity, with drought and flooding threatening to worsen the crisis.

A northern-zone union leader cited over 1.5 million unemployed Hondurans, noting that older workers displaced by maquiladora closures face age discrimination and limited rehiring prospects despite government job-creation promises.

Honduras's budget execution stood at only 35% through mid-2026, according to watchdog ASJ, leaving shortfalls in medicines, school infrastructure, and other key services, though Finance Minister Emilio Hércules put the figure above 42%.

ASJ economist Obed García warned that Honduras's public debt has grown to roughly equal the entire national budget, leaving little fiscal room for salaries, public investment, and essential services if the government were to address it.

Experts debated Honduras's urgent need for electricity-sector reform, warning that failure to reach consensus by July will worsen blackouts, increase public debt, and deter foreign investment, as lawmakers disagree over whether new utilities should remain state-owned or allow private investment.

Family remittances to El Salvador, Guatemala, and Honduras totaled $20.15 billion in the first five months of 2026, an 8.6% increase from the same period a year earlier.

Honduran authorities forecast slight fuel price increases next week, citing the ongoing conflict in the Middle East.

Honduran coffee exports reached 161 destinations in the 2025–2026 harvest, surpassing projections, with the United States buying 2.27 million quintals (about 102,000 metric tons) and accounting for 33.1% of total shipments.

The Agricultural Marketing Institute director said a legal investigation into bean supplies is nearing conclusion, with the government holding about 100,000 quintals (roughly 4,500 metric tons) in reserve to prevent shortages and expects authorization within days to proceed with sales.

Civil-society groups say drug purchases and free-tuition programs are at risk because budget execution has fallen below 40%, starving key public health and education initiatives of funds.

An economist at civic watchdog group ASJ warns that Honduras's rising public debt could approach $25 billion within years without policy changes, and calls for greater investment in infrastructure, ports, education, and energy to drive sustainable growth.

Honduras recorded a foreign-exchange surplus of $1.4 billion in the first half of 2026, led by remittances of $6.6 billion, which exceeded prior-year inflows by 12.4%.

Honduras registered a 5.83% annual inflation rate in June, the highest in Central America, with economist Dante Mossi warning that subsidy removals and price increases are pushing the poor toward extreme hardship and reducing consumer spending.

Juan Carlos Hernández, president of Honduras's Colegio de Economistas, defended the central bank's decision to hold its benchmark interest rate steady, arguing that lower rates would risk fueling inflation by increasing money in circulation without proportional growth in goods and services.

Finance Minister Emilio Hernández Hércules reported that Honduras has executed more than 42% of its 48-billion-lempira budget (about $1.9 billion) two and a half months after its April approval, with spending focused on infrastructure, health, and upcoming housing programs through Banhprovi.

Obed García of the ASJ argues Honduras must streamline its 116 public institutions and reduce bureaucratic overhead to improve spending efficiency and remove regulatory barriers slowing investment.

Obed García, an economist at the Association for Justice, says Honduras should use public borrowing to fund infrastructure and productive projects rather than other spending, citing existing road and economic plans and the need to create jobs for 300,000 unemployed people.

The Central Bank of Honduras is alerting the public to fraudulent documents falsely bearing the bank's name and official-looking graphics used to solicit payments for nonexistent loans; it urges people not to pay or share personal data.

The Central Bank of Honduras sold $98.3 million in its daily currency auction on July 14, setting the weighted average exchange rate at L26.7580 per dollar for July 15.

Honduras received $6.51 billion in family remittances in the first six months of 2026, a 12.3% increase from the same period in 2025, with over 85% coming from the United States and mothers receiving 38.6% of the total.

As of May 2026, Honduras's central bank's external debt consists of loans (59.4%), Special Drawing Rights allocations (38.8%), and other instruments (1.8%).

As of May 2026, Honduras's external public debt stood at $10.76 billion, with 70.1% owed to multilateral organizations, 20.9% to commercial creditors, and 9.0% to bilateral lenders.

Honduras's banking system holds nearly 200 billion lempiras (about $8 billion) in excess liquidity, and economists say the central bank must manage the surplus and maintain its policy rate to avoid stoking inflation.

The Honduran fuel distributors' association says price reductions take longer to reach consumers than increases because of volatile global markets, summer demand surges abroad, and geopolitical uncertainty around Middle Eastern shipping routes.

More than 261,000 Honduran children in child labor earn an average of L4,279 (about $172) monthly—three times less than the L14,917 minimum wage—with rural children and those aged 5–9 earning the least.

The Central Bank of Honduras auctioned $85 million in foreign currency on July 13, setting the weighted-average exchange rate at L26.7565 per dollar for July 14.

Honduras's net international reserves reached $1.29 billion as of July 10, up from January 27, with import coverage holding steady at 6.7 months.

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

The Central Bank of Honduras forecasts year-over-year inflation of 4.97% at the close of 2026, with a declining trend that would bring it within the monetary authority's target range of 3.0–5.0% by June 2028.

An economist at Honduras's social auditor's office warns that public debt has climbed to nearly $14 billion—above pre-2006 levels—as the government takes new loans to pay existing obligations, creating a cycle of mounting debt.