Honduras Economy News

The director of Honduras's fuel distributors' association warned that volatile international oil markets make fuel prices unpredictable and urged week-to-week analysis, noting that high costs disproportionately harm low-income households and the national oil import bill could exceed $3 billion by year-end.

Central Bank President Roberto Lagos said the 25-basis-point increase in Honduras's monetary policy rate will not immediately or sharply raise credit costs, as the bank is managing the adjustment gradually and the full transmission to borrowing rates typically takes about six months.

Honduras's year-on-year inflation climbed from 3.46% in February to 6.20% in August 2026, driven largely by rising international oil prices, prompting the central bank to take steps to contain the impact.

Honduras's central bank allocated $107.3 million in its September 22 currency auction, setting the weighted average exchange rate at L26.8808 per dollar for September 23.

Falling global coffee prices driven by Brazil's record harvest are squeezing Honduran producers, though an expected 1 million additional quintals (about 45,000 metric tons) of production this year may partially offset lower per-unit earnings.

Honduras's 2027 budget directs 8.563 billion lempiras (about $343 million) to infrastructure projects, mainly road corridors and social infrastructure, while increasing municipal transfers by 7.5% to roughly 11.6 billion lempiras.

Honduras's garment and assembly industry will lose an estimated $500 million in exports by year-end as a 10% decline reflects structural competitiveness challenges including high electricity costs, labor expenses, and shifts in global markets, the regional manager of the Honduran Maquiladora Association said.

Honduras has 3.79 million employed workers with average monthly income reaching L10,356 (about $415), up 6.9% from 2025, though unemployment rose to 7.1% and 61.1% of households remain below the poverty line.

The Central Bank of Honduras auctioned $88.6 million in foreign exchange on September 21, setting the official exchange rate at L26.8862 per dollar for September 22.

About 350 census takers and supervisors in Atlántida protested at the regional governor's office on September 21, demanding full payment for August–September work and a formal new contract after the INE failed to pay them and their initial contract expired.

An extreme El Niño event could reduce Latin America and the Caribbean's GDP by at least 2 percent, according to the UN economic commission for the region (CEPAL).

The Labor Ministry is hosting a recruitment event Friday, September 25, at the Government Civic Center in Tegucigalpa for a delivery-driver position requiring a heavy-truck license, primary education, and experience in consumer-goods distribution.

Food prices across Honduras's basic basket are climbing due to fuel costs and weather damage, threatening families' ability to afford traditional holiday meals in December, warns a food-security researcher at UNAH.

The Central Bank of Honduras raised its policy interest rate to 6%, a decision that now comes from President Roberto Lagos, who as an outside critic in 2024 had warned that similar rate increases by the previous government risked raising loan costs across the financial system.

Fuel prices have driven up operating costs for Honduran companies by 15%, particularly in transport and distribution, while higher prices for goods and services are eroding household purchasing power and forcing businesses to seek cost-cutting alternatives.

Honduras has received over $8 billion in family remittances so far in 2026, bolstering international reserves and macroeconomic stability, though an economist warns that dependence on these flows leaves the economy vulnerable to shifts in migration policy or conditions for Hondurans abroad.

Honduras's Energy Ministry announced increases across fuel products effective September 21, with premium gasoline climbing L4.57 per gallon in Tegucigalpa and kerosene rising L4.69, driving up costs for drivers and businesses nationwide.

Honduras's tax authority is offering taxpayers a chance to settle overdue tax obligations without penalties, interest, or surcharges under Decree 07-2026, available through October 12.

An economist warns that the Central Bank of Honduras's increase in its policy rate to 6% will quickly push up interest rates charged by commercial banks, raising borrowing costs for consumers and businesses.

The Central Bank of Honduras auctioned $83.8 million in a foreign-exchange sale on September 18, setting an average exchange rate of L26.8904 per dollar for September 19–21.

A former president of Honduras's economists' association said the government's decision to raise the fuel subsidy from 50% to 65% warrants scrutiny given global oil prices exceeding $100 per barrel, and cautioned that prolonged subsidies strain public finances.

Honduras's Central Bank raised its benchmark interest rate by 0.25 percentage points to 6%, effective Monday, citing inflation that reached 6.2% in August and exceeded the target range.

Honduras's 2026–2027 wage agreement includes a safeguard clause that triggers an automatic minimum-wage adjustment if year-on-year inflation in December surpasses 7%, protecting workers' purchasing power against rising prices.

Eggs are selling for 2 lempiras (about $0.08) less per unit this week at the National Stadium Farmer's and Artisan Fair in Tegucigalpa, according to the fair's secretary.

Honduras's commercial banks are capturing more private-sector deposits, particularly savings accounts from households buoyed by incoming family remittances, the Central Bank reports.

Vehicle registration fees in Cortés department, including San Pedro Sula, are the highest in northern Honduras, driven by municipal rates that vary significantly by engine size and municipality.

Honduras National Statistics Institute officials cite high fuel costs and unemployment—worsened by reduced private investment—as the main factors pressuring household incomes, describing poverty as a structural challenge spanning decades.

Honduras exported 630 metric tons of fine and aromatic cacao through September 2026, generating $2.8 million in revenue, with most shipments bound for Central America and about 70 processing companies adding value to the crop.

El Salvador, Guatemala, and Honduras received $29.1 billion in remittances in the first seven months of 2026, a 7.1% increase from the same period in 2025, with Honduras seeing an 11.2% year-over-year gain.

With over 70,000 Hondurans losing protected status in the US, economists warn that potential returnees will strain Honduras's already-weak job market, which lacks sufficient formal employment and faces a skills gap between workers and employer needs.