Honduras Economy News

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.

Cohep's president warned that technical losses, theft, and illegal power tapping in the national grid represent resources that could be redirected to health, education, and infrastructure, and called for Congress to approve an energy-law overhaul to strengthen state utility Enee.

Honduras's chamber of commerce says the Partial Employment Law contains vague wording and legal gaps that deter businesses from using it, citing only 70 registered contracts under the law and calling for clearer employment legislation to spur job creation.

Vendors at Tegucigalpa's Feria del Agricultor and other markets report rising wholesale costs on chicken products and beef, dwindling customer traffic as families tighten spending, and some store closures due to shortages of beef and eggs.

The electricity regulator Héctor Corrales urged Congress to approve proposed reforms to the power sector that would enable competitive bidding for contracts, arguing such measures are essential to lower and stabilize rates—a stalled bill facing Liberal Party opposition.

The Energy Ministry announced new fuel prices effective August 24, with increases for regular gasoline, diesel, and kerosene, though premium gasoline will drop slightly.

Foreign direct investment in Honduras fell 27% in the first quarter of 2026 compared with the same period a year earlier, declining to $213 million from $292 million, a loss economists and business leaders attribute partly to weak global conditions and partly to Honduras's competitive disadvantage versus regional peers.

Honduras's energy reforms remain blocked in Congress due to disagreements between the ruling Libre and opposition Liberal parties, prompting a nationalist deputy to suggest the president may bypass the legislature by using ministerial council decisions.

Real economic output grew 5.0% year-over-year in June 2026 according to the Central Bank's monthly activity index, maintaining positive momentum despite global headwinds.

Honduras rejoined the international investment arbitration system on August 16, facing between 14 and 18 pending claims — most valued at 1.6 billion to 2.5 billion lempiras (roughly $64–$100 million) each — with the largest, Próspera's suit, now standing at about $1.63 billion after being reduced from an initial $10.8 billion claim.

Agriculture Minister Moisés Molina ruled out a famine despite what he called the worst drought on record hitting 75 municipalities, saying Honduras has sufficient food stocks and future grain contracts, even as local mayors report total crop losses and hundreds of cattle deaths.

Adverse weather and crop failures in Piraera, Lempira are forcing agricultural families to sell livestock to cover basic needs, prompting the mayor to call on the government for rural support.

The Agriculture Ministry unveiled a 10-year strategy investing $40 million annually to expand irrigation on 60,000 hectares, strengthen school meals for 300,000 children, and boost local farm production amid an El Niño drought affecting 134,000 families across 234 municipalities.

A TuNota analysis finds that Próspera's earlier employment figure of 3,480 jobs mixed direct and indirect positions, with a later revision to 974 jobs—a 72.8% drop the developer attributes to legal uncertainty, though public data do not isolate the causes or allow independent verification.

Honduras's official dollar exchange rate climbed to L26.8368 (buy) and L26.9710 (sell) on August 20, continuing a week-long upward trend that has seen the lempira depreciate by roughly L0.009 since Monday.

A UNAH economist warns that termination of Temporary Protected Status for approximately 50,000 Hondurans in the US could result in a gradual decline in remittances, potentially totaling $200 million annually if affected migrants lose formal employment and income capacity.

A National Congress member from Yoro requested urgent intervention from the Agriculture Ministry to address severe drought in the Alto Aguán region of Olanchito, where lack of rainfall has depleted livestock feed and threatened cattle producers' livelihoods.

A Central Bank of Honduras survey finds that 85% of Hondurans sending remittances home live in the US, over half have been abroad at least 16 years, and they send an average of $506 monthly.

Economist Julio Raudales, former president of the Honduran Economists' College, notes that poverty in Honduras has remained at roughly 63% since 2001, questioning what progress has been made despite 25 years of Temporary Protected Status for Hondurans in the US.

Honduras received $6.52 billion in remittances in the first six months of 2026, a 12.3% increase from the same period in 2025, according to the International Organization for Migration.

Honduras ranks third in Central America for residential electricity costs at $0.236 per kilowatt-hour, but economists say the true cost to users and public finances is far higher due to losses at the state utility Enee, debt servicing, and an incomplete energy-sector reform.

Internal documents from the agricultural development bank Banadesa reveal a July 2026 credit committee meeting convened for only three loan applications totaling L31.7 million (about $1.27 million), including L7.8 million (about $312,000) to a man with political and family ties to the bank's president.

Standard & Poor's is conducting a periodic review of Honduras's sovereign credit rating on August 18–19, meeting with President Asfura, Congress members, and the private sector to assess the government's fiscal, economic, and institutional conditions.

The Agriculture Ministry projects rice production of 700,000 quintals (about 31,500 metric tons) in the near term, a 40% increase from 2025's roughly 500,000 quintals, as part of a strategy to reduce dependence on imports that currently supply over five million of the six million quintals Honduras consumes annually.

The Energy Ministry raised diesel prices by L 3.73–3.89 per gallon and kerosene by L 2.46–2.62 per gallon nationwide starting August 17, part of consecutive weeks of fuel increases affecting transport, industry, and agriculture.

Honduras has exported 7.18 million quintals (about 323,000 metric tons) of coffee so far this harvest season, surpassing the previous record and projecting total foreign-exchange earnings from coffee to reach historic levels of around $2.35 billion.

Five staple foods rose in price this week at Tegucigalpa's Farmers Market—including red onions (L30/lb), cabbage (L40), and beef (L98/lb)—while broccoli, yellow onions, corn, and chayote squash fell.

The maquila industry generates about 130,000 jobs, contributes 45–50% of Honduras's gross exports, and projects $5.5 billion in shipments for 2026, though sector leaders say stronger investment climate and security are needed to sustain growth.

Basic-food prices at Roatán's Farmers Market remained relatively stable this week, with beans and eggs holding firm, some vegetables declining, and beef prices rising slightly as merchants reflected broader market pressures.

Five vegetables in Tegucigalpa's Farmers Market accumulated L30 in price increases, and several beef cuts rose by up to four lempiras per pound this week, driven by extreme drought affecting crop and livestock production.