Browse Honduras Daily Stories

The private-sector council COHEP warns that rising fuel, energy, and input costs are accelerating company closures, with about 80% of microenterprises failing within five years and leadership transitions adding further risk.

President Asfura said new energy legislation would allow large businesses and industries to negotiate power purchases directly with generators rather than rely solely on state supply, aiming to lower costs and attract investment.

The Central Bank of Honduras forecasts full-year 2026 GDP growth of 3 to 4 percent, supported by agricultural exports and household consumption, though the outlook depends heavily on global oil and coffee prices and international trade tensions.

Honduras's international reserves rose $1.26 billion to $11.56 billion in the first six months of 2026, a gain President Asfura credits to fiscal discipline and responsible management of public resources.

The Central Bank of Honduras auctioned $96.2 million in its August 3 currency sale, setting the weighted average exchange rate at L26.8003 per dollar for August 4.

Lawmakers are negotiating a bill to rescue the troubled state electrical utility ENEE and modernize its aging infrastructure, with Congress leadership saying a formal vote could come this week or next.

Honduras's net international reserves reached $11.7 billion as of July 31, up $1.4 billion since late January, providing 6.8 months of import coverage, the central bank reported.

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.

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 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.

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.

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.

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.

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.