Browse Honduras Daily Stories

Honduras's manufacturing industry grew 1.5% in the first quarter of 2026, reversing a 3.0% contraction in the prior quarter, driven by increased demand for food and beverages including processed coffee, fish, oils, flour, and bakery products.

Gross domestic product expanded 1.2% in the first quarter of 2026 compared to the previous quarter, the strongest first-quarter growth in recent years and well above the 0.1% recorded in late 2025, signaling moderate economic acceleration.

Foreign direct investment in Honduras dropped 27% in the first six months of 2026 to $213 million, about $80 million less than the same period last year, the Central Bank confirmed.

Honduras's electric utility regulator approved a third rate increase for 2026 effective July 1, expected to raise bills 5–10% through September, pushing year-to-date increases to nearly 15% amid inflation above target and lempira depreciation.

Honduras's net foreign reserves have accumulated $1.124 billion since January 27, the Central Bank reported, with import coverage holding steady at 6.6 months.

Twenty-one staple foods including butter, cheese, pasta, and beef ribs have fallen in price following five consecutive weeks of fuel reductions, as the Economy Ministry pushes over 16 industries to pass savings to consumers.

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.

The Central Bank auctioned $95.6 million in its June 29 foreign-exchange sale, setting the weighted average exchange rate at L26.7183 per dollar for June 30.

Honduras's banking regulator (CNBS) unveiled a five-year National Financial Inclusion Strategy (2025–2030) aimed at expanding access to formal financial services for women, youth, rural communities, small businesses, elderly people, and indigenous and Afro-Caribbean populations.

An energy analyst at the ASJ warns that Honduras's next power-rate adjustment could increase due to rising fuel prices and the country's heavy reliance on fossil-fuel generation, citing a lack of competitive bidding that has forced ENEE to rely on costly spot-market contracts.

Analyst Henry Rodríguez says Honduras must invest approximately $4.2 billion annually to generate between 70,000 and 80,000 jobs per year.

Family remittances made up 52 cents of every dollar in Honduras's national income during the first half of 2026, while budget execution reached only 35 percent, according to the Finance Ministry.

Fuel prices will drop by 2 to 4 lempiras per liter starting Monday, according to the Energy Ministry's new weekly price structure.

The International Monetary Fund's board approved Honduras's fourth and fifth program reviews, unlocking a $242 million disbursement and bringing total IMF funding to $725 million of a $847 million package, though the IMF flagged missed targets on electrical utility arrears and urged faster energy-sector reform.

Honduras's basic food basket has risen more than 700 lempiras (about $28) since January, according to academic economists.

Alexander Godoy, a STENEE union representative, says a review of Honduras's electricity subsidy aims to ensure benefits reach only low-income families while eliminating aid to vacation homes and vacant properties, allowing state utility ENEE to strengthen its finances and reduce costs.

Honduras recorded a current-account surplus of $763.7 million in the first quarter of 2026, driven by strong family remittances and rising exports, particularly coffee.

Congress President Tomás Zambrano announced a proposal to restructure agricultural and livestock producers' debts at 2.5% interest, with about 15 billion lempiras (roughly $600 million) in funding identified from the Latin American development bank to support the sector.

Economist Henry Rodríguez says Honduras's budget execution is tracking at only 32% through June due to delays in budget approval and cabinet formation, with 26.2% committed to salaries and 27% to debt service, leaving little room for public investment.

Honduras's net international reserves have accumulated $1.13 billion since January 27, the central bank reported as of June 25, while import coverage held steady at 6.6 months.

Honduras's net international investment position stood at minus $11.23 billion in the first quarter of 2026, an improvement of $1.27 billion from the end of 2025 as the country reduced its net debtor position.

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.

Transport operators say they will not reduce urban bus fares in the capital until diesel and gasoline fall to L75 (about $3) per gallon, citing insufficient relief from current fuel-price declines.

The Central Bank's Global Real Effective Exchange Rate Index rose 2.34% year-over-year in May 2026, marking five consecutive months of improved export competitiveness driven by favorable exchange-rate movements.

The Central Bank of Honduras auctioned $93.8 million in its daily currency sale on June 26, setting the exchange rate at L26.7217 per dollar for the weekend and Monday.

As of March 2026, Honduras's foreign-exchange reserves reached 144.4% of the IMF's recommended sufficiency level (100%–150%), exceeding the prudential threshold and bolstering the country's ability to withstand external economic shocks.

Honduras's public external debt reached $10.76 billion as of March 2026, up $24.5 million from December 2025.

Honduras's Housing Ministry plans to subsidize home purchases for about 5,000 low-income families by year-end, allocating over 1 billion lempiras (about $40 million) in direct credits and state subsidies targeting households earning less than half the minimum wage.

Honduras's energy ministry announced a significant reduction in petroleum product prices effective Monday, June 29, continuing a downward trend in fuel costs.

Honduras's monthly trade deficit with China has surged to $256 million as of April 2026, with Chinese imports dominating the market while Honduran exports remain minimal, a deepening asymmetry since Honduras shifted diplomatic ties from Taiwan to mainland China in 2023.