Browse Honduras Daily Stories

An estimated 80% of Honduran farmers operate outside the formal economy, leaving them unable to access regulated credit and forcing many to rely on informal lenders at unfavorable rates, a business leader says.

The Honduran petroleum distributors' association forecasts price drops for gasoline and diesel in the coming weeks, citing declining international refined-fuel markets despite crude oil exceeding $100 per barrel.

Honduras has roughly an 80% chance of passing key performance indicators to compete for a new US Millennium Challenge grant worth $800 million to $1 billion, which the government aims to use for infrastructure and poverty reduction after more than 15 years without such funding.

Honduras's state electricity utility ENEE has begun forgiving accumulated electric bills, penalties, and interest for low-income residential customers with monthly consumption of 250 kilowatt-hours or less, applying the Energy Justice Law.

Honduras is reactivating an interbank foreign-exchange market that allows commercial banks to trade dollars directly rather than channeling all sales through the central bank, though economists warn it could pressure the exchange rate and international reserves if a few banks dominate or if December import demand spikes.

Drought across Honduras has driven onion prices up five lempiras per pound and potatoes up two lempiras per pound at major markets, squeezing household budgets as consumers report their food money no longer stretches far enough.

Honduras's taxi association (ATAXUH) is staging a sit-in on Tuesday on Boulevard La Amistad in the Atlantic zone, demanding a six-month freeze on fuel taxes and government installation of LPG systems in all taxis.

Honduras produces about 80,000 quintals (roughly 3,600 metric tons) of cardamom annually, with more than half exported for over $16 million in foreign exchange, making it an increasingly important agricultural commodity for the western and Atlantic coast regions.

Honduran coffee output reached 7.3 million quintals (about 329,000 metric tons) this year, up from 6.1 million, generating $2.3 billion in export revenue and contributing roughly $2.45 billion total to the economy including domestic consumption.

Honduras's planned energy reform faces delays as the government struggles to find resources to cover the cost of freezing electricity rates for six months, raising questions about who will ultimately bear the financial burden.

Honduras's garment and assembly industry will lose an estimated $500 million in exports by year-end as a 10% decline reflects structural competitiveness challenges including high electricity costs, labor expenses, and shifts in global markets, the regional manager of the Honduran Maquiladora Association said.

The National Agricultural Development Bank (Banadesa) faces overdue loans totaling nearly L3.8 billion—about 50% of its portfolio—including decades-old credits, limiting its financial sustainability and requiring a debt-recovery strategy.

Honduras's electricity regulator warns that Congress-approved reforms to the power sector remain unsigned and unpublished, delaying their implementation even as daily blackouts persist due to insufficient generation capacity.

Honduras must improve transparency, anti-corruption controls, and institutional oversight to qualify again for funding from the US-backed Millennium Challenge Account, according to a governance expert who highlighted recent reforms in energy and beneficial-ownership disclosure as steps forward.

Honduras banana exports remain stagnant at around $20 million as fertilizer costs surge 300%, prompting many farmers to sell their land and exit the sector, industry leaders warn.

ENEE's 400-megawatt diesel-lease contract, signed under former management, requires the state utility to buy fuel at over $100 per barrel, driving generation costs above 45 cents per kilowatt-hour and forcing rolling blackouts that a partial rate freeze cannot offset.

Honduras's petroleum distributors' association is warning that rising international diesel prices could push up transport and food costs, and is calling on the government to adopt a long-term energy policy.

Adalid Irías, president of a consumer-advocacy group (Defco), called on Honduras's consumer-protection office to meet with producers to identify causes of recent food-price increases, citing eggs rising 6 lempiras (about $0.24) per carton and other staples climbing 3–4 lempiras, partly attributed to drought and higher livestock-feed costs.

Honduras's basic food basket increased from L14,500 to L16,000 between December 2025 and July 2026, according to Artículo 19, with meat, dairy, beans, and vegetables driving the cost surge and squeezing household buying power.

The research organization Sendas called for energy-sector reform to be built on political independence, reduced technical losses, financial recovery, greater market competition, and accountable leadership to address ENEE's structural crisis, which cost the utility about $530 million in uncollected revenue during 2025.

Juan Carlos Hernández, president of Honduras's Colegio de Economistas, defended the central bank's decision to hold its benchmark interest rate steady, arguing that lower rates would risk fueling inflation by increasing money in circulation without proportional growth in goods and services.

Finance Minister Emilio Hernández Hércules said the Public Safety Tax will collect over L6 billion (roughly $240 million) this year — up from L5.3–5.4 billion in prior years — driven by economic growth and higher banking transactions, with funds going to police, courts, prosecutors, defense, and the 911 emergency system.

Honduras's public-sector workers' union (ANDEPH) is preparing a formal proposal to the government for a 3,000-lempira (about $120) salary increase for roughly 120,000 state employees, citing a year without significant raises and inflation exceeding 4.5%.

Frequent blackouts across Honduras are causing daily losses to small and medium-sized businesses, with some municipalities reporting up to 14 outages daily and Congress stalled on energy reforms.

The government approved imports of corn, beans, and rice to manage domestic supply and control prices amid drought, while the agriculture ministry pursues higher-yield rice seeds to boost national production.

The government announced 64.3 million lempiras (about $2.6 million) in financing for salt producers through the ComRural program, aiming to strengthen the sector and create jobs in salt-producing communities across Honduras.

Honduras imports over 40 million pounds of avocados annually at a cost of $12–15 million in foreign exchange, and producers say strengthening domestic cultivation across the country's 1,200 farms could reduce dependency and support the agricultural economy.

Frequent blackouts are crippling Honduras's micro, small, and medium-sized enterprises, with the sector reporting estimated daily losses of 15 million lempiras (about $600,000) as outages lasting up to six hours halt production and sales.

A Chamber of Commerce official estimates road blockades are causing 300–400 million lempiras (roughly $12–16 million) in losses, particularly hurting small and mid-sized businesses unable to move goods or receive supplies.

The head of Honduras's land-transport authority said the government may call taxi operators to negotiate a rollback of the L5 provisional fare increase granted during higher fuel prices, if pump prices continue to decline.