Browse Honduras Daily Stories

Finance Minister Emilio Hernández Hércules reported that Honduras has executed more than 42% of its 48-billion-lempira budget (about $1.9 billion) two and a half months after its April approval, with spending focused on infrastructure, health, and upcoming housing programs through Banhprovi.

Coffee producer Víctor Barahona projects Honduras's coffee exports will reach $2.5 billion this season.

Roberto Lagos, president of the Central Bank of Honduras, said July inflation data should show a deceleration, and the bank will review monetary-policy instruments to reduce excess money supply without harming credit growth, which has risen 6.7% in the first seven months of 2026.

Former president of Honduras's economists' association Liliana Castillo projects the lempira could depreciate to 27 per US dollar by September if it continues declining at its current rate of about 6 centavos monthly, a gradual depreciation she says would cushion domestic prices better than a sharper drop.

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.

Eduardo Bennaton, president of Honduras's renewable-energy association, says rising electricity tariffs reflect dependence on imported inputs and is pressing lawmakers to approve reforms that would help bring renewable investments and energy independence to Honduras.

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.

A JP Morgan Chase report ranks Honduras among Latin America's lowest-risk countries for investment, but economists say Honduras must improve public services and compete for capital to capitalize on the rating.

Juliette Handal, former president of Honduras's main business council (Cohep), attributed a first-quarter decline in investment to security concerns, including gang violence and massacres, rising energy costs (set to jump 12%), and international supply-chain disruptions, all of which she said undermine investor confidence.

Finance Minister Emilio Hércules said reducing an electricity rate hike requires a large fiscal cost to the state, since the tariff increase was originally set at 21.5%.

Rafael Medina, former head of Tegucigalpa's Chamber of Commerce, urged oil companies and transporters to pass falling global fuel prices to consumers quickly, noting that inflation jumped nearly 1.5 percentage points above year-ago levels partly because of earlier fuel-cost increases.

Honduras' external debt climbed to $9.3 billion as of March 2026, up 13.3% over two years, prompting the business council to urge the government to prioritize efficient public spending and curb excessive borrowing.

Central Bank President Roberto Lagos said Honduras must prepare monetary and fiscal measures aligned with IMF recommendations to contain inflation, while currently monitoring how fuel prices ripple through the economy; he indicated no immediate rate adjustment is needed given US Federal Reserve policy.

Housing Secretary Francis Argeñal said 75% of Honduras's population lacks access to bank credit, prompting the government to develop a national financial-inclusion plan and subsidy policy for housing projects.

An economist at Fosdeh argues that recent declines in diesel prices justify revising public transport fares that were raised months ago as a temporary measure tied to fuel costs.

Honduras's banking system credit portfolio growth decelerated to 8% year-over-year in April 2026 from over 17% a year earlier, driven by lower interest rates, inflation pressuring household incomes, and weak demand for business and consumer loans despite improved bank liquidity.

CGT leader Daniel Durón argues that the part-time employment law has not reduced joblessness because the real problems are informal work (affecting 70% of the workforce) and low wages—80% of salaried workers earn under L10,000 (about $400) monthly.

Economist Amparo Canales welcomed fuel price reductions as temporary relief but stressed that savings must translate into lower consumer prices broadly, urging authorities to monitor for pricing abuses.

An analyst with Honduras's external-debt and development forum says poverty levels have remained flat over two decades despite spending more than 800 billion lempiras (roughly $32 billion) in anti-poverty programs, raising questions about where the money went.

Economist Guillermo Matamoros says the Central Bank of Honduras must implement mitigation measures as inflation indicators suggest it will exceed the bank's target range, though May data shows a slowdown from April.

The government approved importing 60,000 metric tons of rice from South America with zero tariffs through December 31, bypassing the 45% duty normally applied to countries without free-trade agreements, drawing criticism from domestic rice producers who say they lack guaranteed prices and a coherent agricultural plan.

Former Liberal Party leader Yani Rosenthal says fallout from a foreign war has pushed Honduras's inflation beyond the Central Bank's target range, squeezing households and forcing the government to subsidize fuel and energy costs.

CREE commissioner Héctor Corrales said the agency's review of electricity tariffs reflects upward pressure from rising fuel prices, exchange-rate shifts, and increased energy demand.

Honduras's monthly economic activity index rose 3.5% in the first four months of 2026, driven by stronger agricultural-export sales and increased domestic consumption, the central bank reported.

Central Bank President Roberto Lagos said the IMF agreement does not condition approval of Honduras's electricity-sector reforms, characterizing the Fund as providing accompaniment to the government's own policy vision.

Congressman Marco Midence, a former finance minister, warned that climbing oil prices driven by Middle East conflict will push inflation higher in Honduras, urging the government to adopt energy efficiency measures and stabilize food prices through state programs.

Samuel Rodríguez, a renewable energy generator, said electricity rates are due for adjustment because high fuel prices driven by the US-Iran conflict are raising energy production costs.

Dante Mossi, former president of the Central American Bank for Economic Integration, criticized a proposed reform excluding bonuses from income-tax calculations, warning it could enable employers to reclassify wages as tax-free bonuses and erode government revenue.

Engineer Salomón Ordoñez warned that a 12.48% increase in electricity tariffs will raise living costs and dampen foreign investment, urging transparent bidding and cuts to power-system losses to stabilize rates.

A banking and finance expert says reforming Honduras's electric system could help recover over 16 billion lempiras ($640 million) in losses and reduce the fiscal burden on the national power company, which has weakened since 1990.