Browse Honduras Daily Stories

The proposed 455.4-billion-lempira budget for 2027 would reduce public investment by 17.3% year-over-year to 39.9 billion lempiras (about $1.6 billion), with productive investment falling 34%, according to business-group analysis.

The UN Economic Commission for Latin America and the Caribbean cut its 2026 regional growth forecast to 2% from 2.2% due to geopolitical tensions and trade disruptions, but Honduras is projected to grow 3.5%, outpacing most peers in the region.

A Fosdeh economist cautioned that Honduras's return to an interbank foreign-exchange market could enable dollar hoarding and price spikes unless the central bank imposes safeguards, noting that five financial institutions already control 80% of the country's currency trade.

The head of Honduras's national business association says fuel subsidies do not solve the country's vulnerability to global oil-price swings and calls for structural measures—better public transit, revised work schedules, and a long-term energy strategy—to reduce fuel consumption and protect the economy.

Honduras's bakers say production costs have risen 30% due to higher prices for flour, shortening, fuel, and electricity, and may raise bread prices starting in November to preserve product quality.

Honduras received $10.1 billion in family remittances in the first nine months of 2026, a 11.2% increase from the same period in 2025, with the funds representing over a quarter of the country's GDP and the primary source of foreign currency.

The Honduran private-sector council backs the IMF's 3.3% growth forecast for Honduras this year, citing headwinds including weak US and European growth, climate impacts, energy scarcity, fuel costs, and transport and health-sector labor conflict.

Honduras's total public debt has exceeded $18 billion, with external debt alone over $11.5 billion, and Fosdeh warns that debt service payments of $3 billion planned for 2027 will consume resources needed for health, education, and other sectors.

The World Bank's vice president for Latin America, Susana Cordeiro Guerra, met with Central Bank President Roberto Lagos in Bangkok and confirmed plans to visit Honduras in mid-November to advance economic reforms and competitiveness measures.

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 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.

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.

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.

Falling milk production nationwide and rising operational costs—driven by drought, heat, and expensive fuel—are pressuring dairy product prices, with cheese prices already rising by one lempira this week.

The government will absorb the ACPV fuel tax on diesel for 30 days to ease high fuel costs, but the National Association of Industrialists warns the subsidy is temporary and says structural solutions—infrastructure, technology, and efficiency—are needed to address rising global oil prices.

Economist Germán Dubón says a diesel subsidy could help stabilize transport and distribution costs for basic goods, though he warns the measure will cost the state roughly 77 billion lempiras (about $3.1 billion), equivalent to 30–40% of the Health Ministry budget.

The government will temporarily waive the ACPV tax on diesel—12 lempiras per gallon—from October 5 to November 4, absorbing the cost to shield transport and consumers from rising international fuel prices.

Honduras's state power utility ENEE, losing an estimated 40 million lempiras daily to illegal connections, meter tampering, and theft, is launching specialized crews nationwide to inspect, install meters, and cut service where electricity theft is found, aiming to recover lost revenue and strengthen its financial position.

A Fosdeh economist proposed restructuring Honduras's fuel-subsidy program and reviewing public spending to address rising fuel prices, noting that increasing the subsidy from 65% to 70% has failed to keep prices down, while the government explores targeting diesel support to transportation and agriculture.

Honduras is undergoing its fifth mutual evaluation by Gafilat, the Latin American financial-action group, to assess compliance with international standards for combating money laundering, terrorism financing, and weapons proliferation; the 18-month review is expected to conclude in December 2027.

The Honduran business council reported food and beverage inflation of 5.57% in August, citing drought conditions from El Niño and higher transport costs, while overall inflation reached 6.20% and private-sector credit grew 20% through June.

Finance Minister Emilio Hernández Hércules warned that a six-month suspension of the fuel tax, proposed in Congress, would cost the government 6.6 billion lempiras (about $264 million) in lost revenue that would have to be offset by cutting other budget areas.

Honduras's guarantee fund Confianza SA-FGR has mobilized L29 billion (about $1.16 billion) in loans to micro, small, and medium enterprises since its founding, issuing over 304,000 guarantees and supporting an estimated 435,000 jobs, with 92% of guarantees backing businesses creating 1–10 jobs and 59% benefiting women.

A Cohep executive urged protesters blocking highways to propose solutions instead, arguing that Honduras's fuel-price rise reflects an international situation affecting many countries, since Honduras produces no oil of its own.

CGT labor leader Daniel Durón called on the government, Congress, and businesses to adopt measures to contain the impact of rising fuel costs on Honduran households, citing particular concern over diesel's effect on transport, energy, and consumer prices.

Honduras's international reserves reached $11.85 billion as of mid-September 2026, covering 6.7 months of imports — 1.1 months more than a year earlier, the Central Bank reported.

Economist Amparo Canales says just 10 of Honduras's 105 budget institutions control over 70% of resources and urges officials to review 2026 spending patterns—which have reached only 60% execution by late September—before allocating funds for 2027.