Honduras Economy News

Thomas R. Hardy, operations director of the U.S. Trade and Development Agency, said energy-sector reform and infrastructure projects linking Honduras's Atlantic and Pacific coasts are essential to drawing American investment and strengthening the country's economy.

The electricity regulator warns Honduras risks power rationing next year unless it rapidly adds new generation capacity through competitive bidding, which it says—not tax breaks—will lower energy costs.

Families in San Pedro Sula need L4,500–L5,500 weekly (about $180–$220) for food, transport, and basic household needs, forcing residents to cut purchases and skip meat as inflation erodes purchasing power.

An economist argues the Central Bank's strategy of allowing lempira devaluation to accumulate international reserves is driving inflation and eroding household purchasing power, despite reserves of $11.5 billion being ample to stabilize the currency.

More than 1,400 formal businesses have shut down and registered with Honduras's tax authority (SAR) since 2022, with 200 closures occurring so far this year, concentrated in Francisco Morazán, Cortés, and Comayagua departments.

The Catholic Diocese of La Ceiba is proposing to convert the shuttered English Quarter prison—closed in January 2024 and now deteriorating—into a temporary farmers and artisans market while authorities decide the site's permanent use, with local church and municipal leaders expressing support.

BCH President Roberto Lagos and Paraguay's central bank chief Carlos Carvallo addressed questions on inflation and monetary policy during the Central Bank of Honduras's annual Economic Perspectives Conference in Tegucigalpa.

Economist Henry Rodríguez projects the lempira will weaken to 27.20–27.25 per dollar by year-end and urges Honduras to strengthen domestic production and tighten monetary policy to combat devaluation that drives up consumer prices.

Egg prices in Honduras have jumped another 14 lempiras, now reaching up to 130 lempiras (about $5.20) per carton in Tegucigalpa markets, straining household budgets as a key protein source becomes less affordable.

A CEPAL report ranks Honduras 125th globally on frontier-technology readiness, with its weakest scores in workforce skills (145th) and industrial capacity (133rd), though it ranks a surprising 38th in financing.

Prices for basic produce at Roatán's El Lempirita market jumped sharply this week—tomatoes up to 15 lempiras per pound, onions to 40 lempiras—as vendors report plummeting sales because consumers are cutting back amid higher costs for water, farm inputs, and fuel.

The US dollar reached L27.00 per dollar, extending lempira weakness that economists warn will raise prices for imported goods, fuel, and agricultural inputs across Honduras's economy.

The Agricultural Ministry is rushing to georeference over 50% of Honduras's coffee farms by year-end to meet European traceability standards and secure market access, protecting income for 120,000 farming families as the current harvest approaches 7.3 million quintals (about 330,000 metric tons).

Honduras's Energy Ministry announced new fuel prices effective August 31, with gasoline declining slightly in San Pedro Sula and Tegucigalpa while diesel rises with a temporary government subsidy of L1.86–L1.95 per gallon.

The banking regulator CNBS is offering a free webinar on August 31 about household financial communication, savings strategies, and shared money goals for families.

The National Congress approved a motion by Liberal lawmaker Yury Sabas calling for regulators including the Central Bank, CNBS, and the Financial Crimes Unit to meet with congressional committees to analyze monthly interest rates of up to 5–10% charged by informal lenders and propose protective measures.

Congress approved a waiver of late-payment interest on personal loans issued by Injupemp, Honduras's civil-service pension fund, to borrowers from June 2014 through June 2025; eligible participants have six months to apply.

The Central Bank of Honduras auctioned $106.2 million in its daily foreign-exchange sale on August 25, setting the weighted average exchange rate at L26.8522 per dollar for August 26.

The Finance Ministry reported that Honduras has executed over 50% of its 2026 budget and transferred more than L8.4 billion (about $340 million) to municipalities, though officials acknowledged the pace remains below target eight months into the year.

The Honduran lempira has depreciated to 26.98 per dollar and economist Dante Mossi warns the currency could break the 27-lempira barrier by late September or early October, potentially raising prices for imported goods including fuel.

Honduras has pre-approved access to $40 million in grants and loans from the Green Climate Fund to address a severe drought affecting 75 municipalities, but bureaucratic delays and lack of government coordination have prevented the funds from being deployed.

About 670,000 Honduran households receive remittances from abroad, with 45% relying on them as their primary income source; 80% of remittance money goes to daily consumption rather than savings or investment, according to central bank data cited by a social-justice think tank.

Southern Honduras's shrimp industry faces over 30% mortality and potential losses of at least $25 million due to severe drought and below-normal rainfall, with 8,000–9,000 jobs at risk in the next six to eight months.

Congress President Tomás Zambrano gave the opposition Liberal Party 15 days to present a counter-proposal on energy reforms for state utility ENEE, warning that without agreement the executive could pursue alternative measures including a presidential decree.

The Central Bank auctioned $91.6 million in a foreign-exchange operation on August 24, setting a weighted average exchange rate of L26.8518 per dollar for August 25.

Honduras has begun delivering 15 million coffee plants to more than 5,000 farmers across several departments to renovate farms using agroforestry systems.

Honduras's two-month vehicle tax amnesty, which waives penalties and interest on unpaid annual vehicle fees through 2025, expires today; over 45,000 owners have already taken advantage, generating L51.8 million in collections.

Honduras's business community will present Congress with reforms to the Partial Employment Law by late August, seeking to ease hiring rules and expand job opportunities, particularly in call centers and digital-economy sectors.

Cohep president Anabel Gallardo called on Congress to pass the long-delayed energy law reform, warning that continued inaction weakens ENEE's governance and could deter investment.

Consumer defender Adalid Irías warned that basic-basket prices could exceed L17,000 (about $680) by year-end, driven by holiday demand, drought conditions, and the broader dry corridor affecting 75 municipalities.