Browse Honduras Daily Stories

Agriculture Ministry plans to invest 350–400 million lempiras (roughly $14–16 million) in a nationwide irrigation program to install over 500 drip-irrigation systems, drill wells, and rehabilitate existing infrastructure, targeting 800–900 farmers across drought-prone regions including the dry corridor and benefiting an estimated 1,600 hectares.

Economic Development Minister Eddy Ordóñez said the government reviews import requests for staples like rice and beans to protect local producers, conducts over 9,000 inspections nationwide, and has launched a digital complaint system to monitor price abuses and market violations.

Honduras's state power utility reduced its arrears to energy generators from over L16 billion to L7.4 billion (about $296 million) through payments exceeding L9 billion since April, while beginning to forgive residential customer debts under a new energy-justice law that could benefit up to 80,000 families.

Honduras's banking regulator has developed the country's first comprehensive national financial-inclusion strategy, backed by the Alliance for Financial Inclusion, to build a more inclusive, resilient, and innovative financial system by 2030.

The IMF's technical mission arrives October 20 to conduct the sixth and final review of Honduras's 2023–2026 agreement, a process lasting through November 2 that officials expect will unlock a final disbursement of about $120 million for the balance of payments.

Honduras's public external debt reached $11.31 billion as of August 2026, up $571 million from December 2025, driven by new borrowing of $1.52 billion against debt repayments of $946 million, according to the Central Bank.

Honduras's state electric company (Enee) loses approximately L8.8 billion (roughly $352 million) in the first half of 2026 due to theft, technical losses, and billing failures, forcing the government to subsidize tariffs rather than pass costs to consumers.

Finance Minister Emilio Hernández Hércules said the government is working to meet transparency and anti-corruption criteria to qualify for a US Millennium Challenge Account compact worth $800 million to $1 billion in 2027, with funds targeted for energy, ports, and connectivity.

Although the Central Bank reported a strong rebound in foreign investment to $468.3 million in the second quarter of 2026, economists warn that most flows are reinvestment by existing companies rather than new capital, reflecting Honduras's weak regional competitiveness.

Honduras's public external debt reached 27.6% of GDP as of August 2026, a level the central bank says indicates low risk of unsustainable public debt.

Available resources in Honduras's banking system grew 22.7% as of September 24, 2026, driven partly by increased domestic investment in government and central bank securities.

A UNAH economist warns that Honduras may receive over $12 billion in remittances in 2026, but that dependence on migrant money discourages investment in productive industries and exports.

The National Association of Industrialists says international tensions, Middle East conflict, rising fuel and energy costs, and dollar fluctuations account for roughly one-third to two-fifths of Honduras's inflation, with the Central Bank expected to revise its economic forecasts in coming weeks.

The central bank auctioned $114.5 million in its foreign-exchange market on October 13, setting the weighted average exchange rate at L26.8927 per dollar for October 14.

As of August 2026, loans account for 74.2% of Honduras's external public financing, sovereign bonds represent 21.2%, and other debt instruments make up the remaining 4.6%.

The central government accounts for 86% of Honduras's public-sector external debt, with the central bank responsible for 13.2% and other public entities holding the remaining 0.8%.

Economist Guillermo Matamoros warns that Honduras faces obstacles—global trade reconfigurations, drought effects, high production costs, and weakening agriculture and manufacturing—that threaten the central bank's 3–4% GDP growth forecast for 2026, with about 47,000 jobs lost so far this year.

Honduras's net international reserves grew by $1.1 billion since late January, reaching $11.4 billion as of October 5 and providing 6.6 months of import coverage.

The Central Bank of Honduras auctioned $90.1 million in its October 12 foreign-exchange sale, setting the weighted average exchange rate at L26.9020 per dollar for October 13.

Honduras's Central Bank forecasts year-over-year inflation of 5.0% by December 2026, declining through September 2028 to settle within the monetary authority's target range of 4.0% ± 1.0 percentage point.

Honduras's business-confidence index (ICAE) reached 56.7 points in September 2026, the highest for that month in four years, and remained in expansion territory (above 50.0) for a ninth consecutive month.

Honduras's international reserves reached $1.24 billion in accumulation through September 24, strengthening the country's external position and providing coverage for 6.6 months of imports.

A World Bank report warns that artificial intelligence could gradually automate physical manufacturing tasks in Honduras's garment industry, which employs about 140,000 workers directly, making workforce retraining and technical skills crucial to protect jobs.

Honduras's Energy Ministry froze diesel and domestic cooking-gas prices as of October 12 while allowing gasoline to rise, using temporary subsidies to shield consumers from international market swings.

Honduran businesses must file and pay sales tax (ISV) by October 12, with the tax authority offering online filing through its virtual office.

Year-over-year inflation on tradeable goods—those subject to international price swings—hit 6.95%, driven mainly by global fuel price fluctuations and rising shipping costs, the Central Bank reported.

Honduras's monthly consumer-price inflation decelerated to 0.48% in September from 0.79% in August, driven by slower price growth in food, beverages, transport, and personal care.

Regular gasoline, kerosene, and vehicle gas will rise by up to L2.50 per gallon (about $0.10) in Tegucigalpa and San Pedro Sula beginning Monday, October 12, while diesel prices remain frozen.

Year-over-year inflation in Honduras reached 6.28% in September, exceeding the Central Bank's tolerance range, according to the bank's monthly bulletin.

According to 2021 data, 68% of Hondurans aged 65 and older live in poverty, and 69% receive no pension or work income, a crisis driven by informal employment and gaps in pension-system coverage that leaves families to provide support.