Honduras Economy News

The Latin American Development Bank approved $400 million to support Honduras's Comprehensive Social Housing Program, which aims to finance affordable, inclusive, resilient, and sustainable homes.

Union leader Evangelina Argueta warned that potential US tariffs on Honduran textile exports could raise production costs and threaten thousands of jobs in an industry already reeling from 60,000 layoffs, and called for urgent tripartite talks between government, workers, and employers.

Honduras's central bank says higher net foreign reserves expanded money supply through currency conversion, but officials have partially offset that expansion by absorbing liquidity from the financial system.

Honduras sold a 10-year sovereign bond for $815.67 million at a 6.4% interest rate, securing funds for debt management and the national budget while locking in interest rates more than 2 percentage points lower than a 2024 issuance.

The Central Bank of Honduras auctioned $96.5 million in its daily currency sale on July 22, setting the weighted average exchange rate at L26.7722 per dollar for July 23.

Coffee businessman Basilio Fuschich said a proposed additional 2.5% US tariff on products from countries with forced labor would, combined with existing tariffs, harm Honduras's exports and give competitors an unfair advantage unless applied uniformly across the region.

The government and private-sector leaders, including Cohep president Anabel Gallardo, have lobbied US officials to prevent tariff increases, warning that higher duties on maquila and coffee exports would cost jobs and drive migration.

The United States will impose tariffs of at least 2.5% on about 60 countries, including Honduras, citing forced labor and child labor in supply chains; the measure threatens Honduran exports of coffee, melons, and lobster, which face existing duties ranging from 10% to 25%.

Honduras's banking sector continues to strengthen as private deposits rise, driven by economic activity and robust family remittances, the central bank reports.

Honduras's central bank reported strengthened foreign-exchange reserves driven by sustained inflows of family remittances and revenues from goods and services exports.

The Agriculture Ministry convened dairy-industry leaders to review production challenges, market stability, and supply strategies, with officials reporting that Honduras produces roughly 1.7 million liters of milk daily and prices remain stable through July.

The Central Bank of Honduras announced measures to reduce inflation, which reached 5.83% in June, by increasing open-market operations to drain excess money from the financial system starting in August, aiming to return inflation to its 4% target by year-end.

The CAF development bank approved $400 million in financing and technical support for Honduras's Integral Social Housing Program, which aims to expand affordable, accessible, and climate-resilient housing and strengthen the sector's financial institutions.

Lawmakers are reviewing a sweeping reform of Honduras's securities law that would let Hondurans channel savings and remittances into investments rather than consumption, an approach already common in Costa Rica, Panama, and the Dominican Republic.

After seven weeks of fuel price declines totaling 15–20 lempiras per gallon, Honduras's petroleum distributors say food and service prices have not fallen proportionally, while the government's consumer protection office reports that 16 basic-basket items did drop in Tegucigalpa markets.

The Central Bank of Honduras auctioned $112.1 million in a foreign-exchange sale on July 21, setting a weighted average exchange rate of L26.7744 per dollar for July 22.

Economist Julio Raudales says the Central Bank of Honduras's inflation target of 5–6% is reachable if monetary policy remains disciplined and external shocks do not occur, though he cautions that balancing price control with economic growth remains a key challenge.

Economist Ismael Zepeda says the Central Bank will struggle to control inflation through monetary policy given international conflicts raising fuel costs and a planned electricity rate increase in the third quarter, though the bank aims to absorb excess money supply and cut monetary emissions by 11%.

Active interest rates on business loans have decelerated across commerce, industry, and services, tracking softer deposit rates, according to Central Bank data.

Honduras's labor federations say they will immediately seek a minimum-wage adjustment if inflation reaches 7%, invoking a safeguard clause in the current wage agreement, citing rising fuel and food costs eroding workers' purchasing power.

The Housing Ministry unveiled a 10-year subsidy plan offering grants of up to L82,500 (about $3,300) and monthly payment reductions to help low-income families qualify for mortgages and afford monthly payments on social housing.

Honduran onion producers say they may suspend planting next season if the government fails to enforce a 2023 agricultural decree that restricts imports when local supplies are sufficient, warning of potential national shortages and market disruption.

The research organization Sendas called for energy-sector reform to be built on political independence, reduced technical losses, financial recovery, greater market competition, and accountable leadership to address ENEE's structural crisis, which cost the utility about $530 million in uncollected revenue during 2025.

Honduras's Property Institute is collecting annual vehicle registration fees on a staggered schedule through December, with an amnesty allowing owners to catch up on 2025 and earlier unpaid fees without penalties, while projecting revenue of L5.4 billion (about $216 million).

Honduras's Part-Time Employment Law, approved in March 2026 with promised creation of 40,000 jobs, has generated only 59 registered contracts as of June, prompting officials and ruling-party lawmakers to acknowledge the law has failed to meet expectations.

Honduras's central bank allocated $90.8 million in its July 20 foreign-exchange auction, setting the weighted average exchange rate at L26.7638 per dollar for July 21.

Honduras's net international reserves have accumulated $1.25 billion since January 27, the Central Bank reported as of July 17, with import coverage holding steady at 6.7 months.

Central Bank President Roberto Lagos said Honduras holds $11.5 billion in international reserves—enough to cover 6.7 months of imports—and projects 3.5% economic growth this year, though he cautioned that energy-sector reforms are needed to attract investment and push growth above 4%.

Economic Development Minister Eddy Ordóñez said Honduras hopes the United States will hold tariffs steady or reduce them when current rates expire on July 24, and noted the government has removed non-tariff barriers and approved a forced-labor ban to support bilateral negotiations.

The Central Bank of Honduras released its updated 2026–2027 monetary program, projecting inflation will converge to its 4.0% ± 1 percentage-point target by December 2026 and tightening money-supply measures to combat price pressures that reached 5.83% in June.