Honduras Economy News

Honduras has roughly an 80% chance of passing key performance indicators to compete for a new US Millennium Challenge grant worth $800 million to $1 billion, which the government aims to use for infrastructure and poverty reduction after more than 15 years without such funding.

End-of-2025 data shows Honduras had 15.6 million deposit accounts, with commercial banks and credit unions holding 94.2% of the total, reflecting expanded access to formal financial services.

The Central Bank of Honduras announced it will begin a phased return to the interbank foreign-exchange market late in 2026, with further details to follow.

Honduras's population reached 11.18 million in 2026, up from 2.1 million in 1960, but annual growth has slowed to 1.63% as fertility rates drop and urbanization accelerates, with 58.8% now living in cities.

The Labor Ministry is holding an in-person job fair on October 20 in El Progreso, Yoro, and accepting digital applications from the western region, seeking professionals, technicians, and sales staff across administrative, supervisory, and customer-service roles.

The Honduran private-sector council backs the IMF's 3.3% growth forecast for Honduras this year, citing headwinds including weak US and European growth, climate impacts, energy scarcity, fuel costs, and transport and health-sector labor conflict.

Honduras's total public debt has exceeded $18 billion, with external debt alone over $11.5 billion, and Fosdeh warns that debt service payments of $3 billion planned for 2027 will consume resources needed for health, education, and other sectors.

Dairy producers in Catacamas, Olancho, say they receive only 10–11 lempiras per liter (about $0.40–$0.44) while production costs have risen, and are calling on the Agriculture Ministry to support the sector or risk losing producers.

Soaring gasoline and diesel prices are forcing Honduran households to reduce spending on food quality, clothing, and recreation, with one Tegucigalpa mother reporting an extra 600 lempiras (about $24) weekly on fuel alone.

Poultry producers guarantee continued supply of chicken and eggs but warn that rising feed and input costs — corn up 35%, soybean oil up 40%, fertilizer up 120% — will drive further price increases, while the government pledges to monitor for excessive hikes.

Economist Sergio Zepeda says Honduras maintains stable macroeconomic conditions backed by foreign-exchange generation and international reserves ahead of the sixth and final International Monetary Fund review, but cautioned that gains must translate into concrete improvements in employment, poverty reduction, and living standards.

Honduras's Energy Ministry announced new fuel prices effective October 19, with premium gasoline falling despite rising international costs, while regular gasoline and vehicular LPG increase, as the government continues subsidizing certain fuels to limit inflation.

An International Monetary Fund delegation arrives in Honduras on October 20 for a two-week review of the country's 2023 economic program; if approved, it will unlock negotiations for a new three-year agreement and access to additional funding.

Honduras's money supply rose 10.0% in the year through October 1, down sharply from 18.2% a year earlier, reflecting the central bank's efforts to manage liquidity and ease inflation pressure.

The Central Bank auctioned $96.6 million in its October 16 foreign-exchange offering, setting the weighted average exchange rate at L26.8862 per dollar for October 17–19.

Honduras's national microenterprise agency is making 86 million lempiras (about $3.4 million) available to agricultural producers through four partner institutions at interest rates of 10–12% annually, with financial training and technical assistance included.

Economist Ismael Zepeda warned that high inflation is directly weakening Hondurans' purchasing power and slowing domestic consumption, forcing families to choose between paying utilities, buying food, and purchasing fuel.

Honduras's public-employee pension institute (INJUPEMP) is offering unsecured loans up to L 800,000 (about $32,000) to active civil servants and retirees at 17% annual interest, with repayment terms of up to 72 months for pensioners under 80.

Honduras's net international reserves grew by $1.21 billion since late January to reach $11.51 billion as of October 15, providing 6.6 months of import coverage.

The central bank reports that Honduras's banking system maintains adequate liquidity and actively manages short-term funding needs, with increased interbank trading and central bank window activity during 2026.

Drought across Honduras has driven onion prices up five lempiras per pound and potatoes up two lempiras per pound at major markets, squeezing household budgets as consumers report their food money no longer stretches far enough.

The World Bank's vice president for Latin America, Susana Cordeiro Guerra, met with Central Bank President Roberto Lagos in Bangkok and confirmed plans to visit Honduras in mid-November to advance economic reforms and competitiveness measures.

Agriculture Ministry plans to invest 350–400 million lempiras (roughly $14–16 million) in a nationwide irrigation program to install over 500 drip-irrigation systems, drill wells, and rehabilitate existing infrastructure, targeting 800–900 farmers across drought-prone regions including the dry corridor and benefiting an estimated 1,600 hectares.

Economic Development Minister Eddy Ordóñez said the government reviews import requests for staples like rice and beans to protect local producers, conducts over 9,000 inspections nationwide, and has launched a digital complaint system to monitor price abuses and market violations.

Honduras's state power utility reduced its arrears to energy generators from over L16 billion to L7.4 billion (about $296 million) through payments exceeding L9 billion since April, while beginning to forgive residential customer debts under a new energy-justice law that could benefit up to 80,000 families.

Central Bank President Roberto Lagos met with IMF Western Hemisphere Director Nigel Chalk in Thailand to discuss the outlines of Honduras's next IMF program.

The Central Bank of Honduras auctioned $104 million in foreign currency on October 15, setting the official weighted average exchange rate at L26.8910 per dollar for October 16.

Honduras's banking regulator has developed the country's first comprehensive national financial-inclusion strategy, backed by the Alliance for Financial Inclusion, to build a more inclusive, resilient, and innovative financial system by 2030.

Finance Minister Emilio Hernández Hércules said the government is working to meet transparency and anti-corruption criteria to qualify for a US Millennium Challenge Account compact worth $800 million to $1 billion in 2027, with funds targeted for energy, ports, and connectivity.

A regional study finds that extreme heat and rainfall push inflation across Central America, Panama, and the Dominican Republic for four to six months after the weather event, creating persistent price pressures beyond the immediate crisis.