Honduras Economy News

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.

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.

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.

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%.

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.

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.

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.