Honduras Economy News

The government announced L64.3 million (about $2.6 million) in financing through the Comrural rural competitiveness program to support salt producers' development and working capital needs.

The Inter-American Development Bank ranked Honduras among the region's fastest-growing exporters in early 2026, led by coffee, apparel manufacturing, bananas, and palm oil, though it warned of risks from market volatility and rising costs.

The Central Bank of Honduras sold $98.5 million in its July 7 currency auction, setting the weighted average exchange rate at L26.7474 per dollar for July 8.

From January to March 2026, demand for concrete blocks (93.6%), aluminum-zinc roofing (84.1%), and ceramic tile (55.1%) drove increased production of cement, rebar, and concrete in Honduras's private construction sector.

Honduras is under pressure to meet a 1% fiscal-deficit target in its International Monetary Fund agreement, with economists warning that maintaining the goal will be one of its toughest challenges to preserve the IMF's confidence and safeguard economic credibility.

Honduras shipped $3.61 billion in goods in the first three months of 2026, an 11.5% year-over-year increase led by coffee, apparel manufacturing, bananas, and palm oil, according to the Inter-American Development Bank.

The Honduran lempira has depreciated to over 26.87 per dollar in sales, with economists and civil organizations warning that the currency weakness is driving inflation and raising the cost of living.

Honduras's basic food basket jumped 800 lempiras (about $32) in a year, a 6.16% increase driven by higher meat and fruit costs, while drought affecting 75 municipalities threatens to push 2.8 million Hondurans into food insecurity by year's end.

The government approved imports of corn, beans, and rice to manage domestic supply and control prices amid drought, while the agriculture ministry pursues higher-yield rice seeds to boost national production.

The Central Bank president says Honduras's electricity crisis is the main brake on economic growth, limiting expansion to roughly 3.5% annually without reform, and that fixing the power sector would free public funds for health and education while attracting investment.

The government announced 64.3 million lempiras (about $2.6 million) in financing for salt producers through the ComRural program, aiming to strengthen the sector and create jobs in salt-producing communities across Honduras.

Agriculture Minister Moisés Molina announced that Honduras will import 100,000 quintals (about 4,500 metric tons) of beans from Nicaragua, Paraguay, and Brazil to offset a drought-driven 40% drop in domestic production and stabilize prices for a staple of the Honduran diet.

Sergio Zepeda, an economist at the National Autonomous University of Honduras, says roughly 90% of remittances entering Honduras are spent on consumption while only 10% goes to savings or investment, with most spending concentrated in major cities.

The Central Bank of Honduras auctioned $83.6 million in its July 6 currency sale, setting the weighted-average exchange rate at L 26.7383 per dollar for July 7.

The Honduran central bank will overhaul its monetary program following the IMF's successful review of Honduras's economic plan, which unlocks a disbursement of roughly $240 million and aims to move toward a more flexible exchange market while maintaining inflation control.

A think tank says Honduras's state power utility loses about 15 billion lempiras (roughly $600 million) a year, blamed on political interference rather than operational needs, as Congress debates an overhaul bill opposed by some lawmakers who fear weakening the company's market role.

Economist Amparo Canales warns that rising electricity rates risk setting off cascading inflation and further increasing the cost of living for Hondurans.

The government said strategic bean reserves held by the agricultural marketing institute exceed storage targets by 10–15%, ensuring adequate supply despite drought, and has identified potential import suppliers as a backup plan.

The Asfura administration has sent a letter of intent to IMF chief Kristalina Georgieva as the current three-year, $822 million program nears completion, though officials say no decision has been made yet on whether to pursue a new agreement.

Former BCIE president Dante Mossi said Honduras's first-quarter GDP growth of 3.6% was the slowest in Central America, warning that only countries growing above 6% can effectively reduce poverty, and urging the government to support small business, construction, and agriculture.

Economists warn that 60% of Hondurans lack sufficient income to purchase the basic food basket.

Engineer Dulio Medina warned Honduras faces a food crisis without a clear agricultural strategy, citing low valley output and rural farming deficits.

Honduras's banks continue attracting private-sector deposits, driven by economic activity, family remittances, and export performance, the central bank reports.

Amparo Canales, former president of Honduras's College of Economists, says energy reforms will require foreign investment and must avoid politicization, while improving the state power company ENEE's efficiency and protecting its assets from privatization.

Engineer Dulio Medina cautioned that Honduras faces a possible shortage of beans and other staple grains after drought and planting failures in Olancho and El Paraíso reduced crop supply for coming weeks.

Honduras's Energy Ministry announced another price cut for the week of July 6–12, extending six weeks of consecutive fuel reductions that have lowered some petroleum products by more than 15 lempiras total.

The Central Bank of Honduras auctioned $81.5 million in a foreign-exchange sale on July 3, setting the average exchange rate at L26.7414 per dollar for July 4–6.

The Central Bank of Honduras kept its policy rate (TPM) at 5.75%, with interbank and central bank window rates aligned to that benchmark.

A month-long drought has cut crop yields across key farming regions and pushed vegetable prices sharply higher at Tegucigalpa's main produce market, with merchants warning of further increases if rains do not return.

Through March 2026, residential construction remained the largest component of private building activity, with increases in new homes registered in Tegucigalpa, San Pedro Sula, and Juticalpa.