Browse Honduras Daily Stories

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.

A northern Honduras fuel distributor says crude-oil prices will continue climbing for at least two weeks due to Middle East tensions, though he notes price controls are managed through international regulations to prevent sharp spikes in the basic basket and inflation.

Juan Carlos Hernández, president of Honduras's economics association, says family remittances have strengthened household purchasing ability for food, education, and health, and reduced demand for consumer credit.

The Latin American Development Bank approved $400 million to support Honduras's Comprehensive Social Housing Program, which aims to finance affordable, inclusive, resilient, and sustainable homes.

President Nasry Asfura announced $17 million in additional funding to expand ProOccidente, a rural development program, into Honduras's Dry Corridor, aiming to provide technical assistance, climate-smart technologies, financing, and market access to over 4,500 small and medium-sized farmers.

Presidential trade commissioner Melvin Redondo said Honduras has complied with legal requirements in a US tariff review affecting 17–20% of exports and has passed a decree banning imports from forced-labor conditions to avoid a potential 12.5% increase.

Coffee businessman Basilio Fuschich said a proposed additional 2.5% US tariff on products from countries with forced labor would, combined with existing tariffs, harm Honduras's exports and give competitors an unfair advantage unless applied uniformly across the region.

Economist Ismael Zepeda says the Central Bank will struggle to control inflation through monetary policy given international conflicts raising fuel costs and a planned electricity rate increase in the third quarter, though the bank aims to absorb excess money supply and cut monetary emissions by 11%.

The director of Honduras's petroleum distributors association warns that fuel prices are expected to rise next week and recommends Hondurans reactivate conservation measures, citing volatile international market conditions.

The government's Social Development Ministry has allocated an average of 92 million lempiras (about $3.7 million) in food assistance to vulnerable communities nationwide, with continued distribution this week in the drought-prone Dry Corridor region.

Economist Ismael Zepeda warns that each cent of lempira depreciation against the dollar directly raises costs for food, fuel, and services; the currency has weakened 1.5% in the first half of 2026, nearing 27 lempiras per dollar.

The Agriculture Ministry called together the National Dairy Commission to review milk-sector conditions, price trends, and develop joint strategies between producers and industry to ensure steady national milk supply.

Juliette Handal, president of the Patriotic and Solidarity Coalition, called on the government to meet with business sectors to prevent them from raising prices in response to fuel-cost pressures.

Labor leader Hilario Espinoza said inspectors are distributed nationwide to verify employers are paying the legal minimum wage, though he acknowledged enforcement challenges and noted inflation has risen to 6%, approaching the 7% threshold that would trigger wage renegotiation.

The head of Honduras's transit authority said if fuel prices continue declining, the agency will review taxi fares to determine possible rate reductions for passengers.

A northern-zone union leader cited over 1.5 million unemployed Hondurans, noting that older workers displaced by maquiladora closures face age discrimination and limited rehiring prospects despite government job-creation promises.

The Agricultural Marketing Institute director said a legal investigation into bean supplies is nearing conclusion, with the government holding about 100,000 quintals (roughly 4,500 metric tons) in reserve to prevent shortages and expects authorization within days to proceed with sales.

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.

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.

Central Bank President Roberto Lagos said Honduras holds $11.5 billion in international reserves—enough to cover 6.7 months of imports—and projects 3.5% economic growth this year, though he cautioned that energy-sector reforms are needed to attract investment and push growth above 4%.