Honduras Economy News

The Cortés Chamber of Commerce president cited a sharp trade deficit with China—Honduras imports about $210 million monthly in Chinese goods while exporting far less—and called for equal competitive conditions and enforcement of tax and labor laws for all foreign investors.

About 50 restaurants closed nationwide in July as rising costs for utilities, supplies, and labor combined with weak consumer demand and municipal red tape, threatening roughly 2,000 jobs, the Gastronomic Association of Honduras says.

Diesel prices have surged 69.8% since January to L141.67 per gallon and premium gasoline 49.6%, with another increase taking effect August 3 that economists warn will drive up transport and food costs.

Red beans jumped 5 lempiras to 110–116 lempiras per measure at Tegucigalpa's Feria del Estadio market this week, with producers warning of further increases in about three weeks as the new harvest arrives; onions, beets, corn, pataste (chayote squash), and cauliflower also rose due to low supply from prolonged dry weather.

Starting August 3, Honduras will undergo its first anti-money-laundering assessment in a decade by Gafilat (the Latin American Financial Action Group), with results affecting investor confidence and the risk of being placed on the international Financial Action Task Force's grey list.

Gremipe, the micro and small business association, warns that about 30,000 microenterprises have shut down nationwide so far this year, costing roughly 80,000 jobs, with power outages and rising production costs blamed for the closures.

Honduras's basic basket of essential goods has climbed to around L17,000 (about $680) in 2026, driven by a 24% increase in electricity rates and volatile fuel prices that consumer advocates say are pushing food staples out of reach for poor Hondurans.

The Energy Ministry warned that fuel prices in Honduras will continue rising for the next three weeks due to international market volatility and crude oil prices hovering around $90 per barrel, with increases likely to push up transportation costs and basic goods prices.

The UN Food and Agriculture Organization called on Central American countries to strengthen strategic grain reserves to protect food security during the expected 2026–2027 El Niño, which forecasters say will bring reduced rainfall, more frequent droughts, and crop damage across the region.

Honduras's shrimp sector, concentrated in Choluteca and Valle departments, maintains steady production and generates $230–$270 million yearly in foreign exchange while supporting roughly 20,000 direct jobs and 100,000 indirect positions across the supply chain.

Honduras's maquiladora sector lost roughly 40,000 jobs in 2025 as companies closed and relocated, even as the government announces a potential 4,000-job textile plant and says a US tariff on Honduran goods is straining competitiveness.

The Attorney General's office says the Economic Reactivation Law has reduced damages awarded in lawsuits against the state by roughly half through settlement agreements between public institutions and plaintiffs.

The Energy Ministry announced price increases for gasoline, diesel, and kerosene effective Monday, August 3, with diesel and kerosene seeing the largest jumps; domestic cooking gas remains subsidized.

The city of San Pedro Sula distributed equipment and supplies to 150 entrepreneurs across neighborhoods including Las Brisas, Bográn, and Chamelecón through its Capital Semilla program, paired with training in financial literacy, business planning, and digital marketing.

A new CEPAL report shows Latin America received $194.2 billion in foreign investment in 2025, but Honduras failed to rank among the region's top destinations while Brazil, Mexico, and Costa Rica captured most flows as global supply chains shift.

Cabbage, onions, and beans posted price increases at Tegucigalpa markets this week, with vendors citing low production and warning that bean prices may climb further in August as new harvests arrive.

The head of Honduras's electricity regulator says delays in the Liberal Party's response to proposed power-sector reforms risk prolonging electricity supply problems and preventing competitive bidding processes needed to lower rates.

More than 312,000 vehicle owners have signed up for payment plans under a two-month amnesty that waives fines and interest on registration arrears through August 25, allowing them to catch up on 2025 or earlier vehicle taxes.

Honduras's construction industry supports the National Housing Plan targeting at least 15,000 homes in the short and medium term, but warns that permit delays of up to four years, high material costs, and a shortage of social-housing projects could hinder execution.

Honduras's Central Bank is implementing measures to absorb excess money circulating in the economy and stabilize resources, as inflation reached 5.83% year-over-year in June, while president Roberto Lagos cited supply-driven pressures and limited scope for interest-rate policy.

Honduras's national university economic institute forecasts the lempira will weaken to 27.15 per dollar by end-2026 and 27.98 per dollar by end-2027, a slower pace than 2025's 4.16% decline, while international reserves remain strong at 11.45 billion dollars.

Honduras's Energy Ministry says 378,920 homes — about 15% of the country — lack electricity, with rural areas most affected and infrastructure investment needed to close the gap.

Honduras's basic food basket has climbed to 16,700 lempiras (about $670), far exceeding the 12,000–14,000-lempira minimum wage, prompting economist Wilfredo Girón to warn that deteriorating purchasing power will force more Hondurans to emigrate as poverty deepens.

An economist at the governance think tank ASJ warns that Honduras is using new loans to service about 40% of its existing public debt, a practice that perpetuates debt growth and undermines long-term fiscal sustainability.

ASJ economist Obed García warned that rising energy costs and imported inflation could push Honduras's consumer price index up by 1.4%–3.7%, citing CEPAL projections, and urged the government to boost public and productive investment to cushion household incomes.

Honduras has spent about 950 million lempiras ($38 million) on fuel and electricity subsidies through mid-2026, exceeding the original budget and prompting officials to consider limiting the benefit to lower-income families.

The Central Bank of Honduras allocated $117.6 million in its foreign-exchange auction on July 28, setting the weighted average exchange rate at L26.7902 per US dollar for July 29.

Congressman Hugo Noé Pino of the Libre party warned that the El Niño drought's damage to food production will push inflation above 5% in the second half of 2026, and called for contingency plans to protect food security in hardest-hit regions.

Housing Minister Francis Argeñal announced a $400 million National Comprehensive Housing Plan, funded by the Latin American Development Bank and administered by the state housing bank Banhprovi, to provide mortgages to eligible families beginning in September.

Finance Minister Emilio Hércules said Honduras placed $815 million in bonds this year—$615 million to manage debt and $200 million for the 2026 budget—while a new sovereign bond carries a 6.40% interest rate, down from 8.65% on the previous issue.