Browse Honduras Daily Stories

Following passage of the Energy Justice Law, approximately 10 companies are planning new investments in Honduras, including a $400 million light manufacturing project in Choloma, with officials citing energy-sector reforms as a key enabler for business confidence.

Honduras's electric-sector overhaul, which restructures ENEE and addresses transmission infrastructure and technical losses, will take at least two years to meaningfully reduce blackouts while the government executes infrastructure investments and tackles the utility's 120-billion-lempira debt.

Escalating international crude prices and Middle East tensions risk pushing up fuel costs and inflation in Honduras, squeezing household budgets and business operating costs across the import-dependent economy.

Economist Santiago Herrera warns that cancellation of the US Temporary Protected Status for Hondurans could reduce remittance inflows by up to $380 million, threatening households dependent on those transfers and straining the country's ability to reabsorb returned workers.

Finance Minister Emilio Hernández says Honduras may qualify for Millennium Challenge Account funds, though 2025's fiscal challenges—legislative delays, missed economic targets, and payment arrears—could affect eligibility; a cabinet delegation will travel to Washington next week to discuss the account and International Monetary Fund issues.

The Régimen de Aportaciones Privadas (RAP), Honduras's private pension fund, expects to hold nearly L50 billion (about $2 billion) in assets by December, all belonging to enrolled workers, and has cut housing-loan rates to 9–10.5% to boost homeownership and construction activity.

Honduras's agricultural sector is reporting significant losses from adverse weather, with corn production down roughly 30% across evaluated plots and livestock output declining 10–40%; the Agriculture Ministry is distributing 20 million lempiras (about $800,000) in feed aid and crop incentives to affected farmers and ranchers.

The head of Honduras's small-business chamber, Victorino Carranza, called on Congress's recent electricity system reforms to cut operating costs for micro and small enterprises, saying companies should pay only for energy consumed and that unpredictable rates now hamper financial planning.

Thomas R. Hardy, operations director of the U.S. Trade and Development Agency, said energy-sector reform and infrastructure projects linking Honduras's Atlantic and Pacific coasts are essential to drawing American investment and strengthening the country's economy.

The electricity regulator warns Honduras risks power rationing next year unless it rapidly adds new generation capacity through competitive bidding, which it says—not tax breaks—will lower energy costs.

Economic Development Minister Eddy Ordóñez warned merchants and producers that those unable to justify recent egg-carton price increases above 14 lempiras face fines of 1,000 to 10,000 minimum wages and possible month-long business closures.

Agriculture Minister Moisés Molina says Honduras faces no food shortage and markets are adequately stocked despite recent weather damage, with new harvests expected from mid-September onward.

Cohep president Anabel Gallardo said legal and economic uncertainty is a major barrier to attracting investment and formal employment, citing losses in the power sector, flaws in part-time labor law, and the need for job creation to retain Hondurans rather than rely on migration and remittances.

Sergio Zepeda, director of the UNAH's Institute for Economic and Social Research, called on the government to prioritize education, health, and productive investment in the 2027 budget draft due to Congress by September 15, arguing that spending must support development, not just cover operating costs.

The US dollar reached L27.00 per dollar, extending lempira weakness that economists warn will raise prices for imported goods, fuel, and agricultural inputs across Honduras's economy.

COHEP confirmed that September 15, 2026, will be a fixed national holiday for Honduras's Independence Day, and Morazán Week will run October 7–9 for public employees and October 7–10 (with half-days at start and end) for private-sector workers, with differences reflecting each sector's labor rules.

The Honduran lempira has depreciated to 26.98 per dollar and economist Dante Mossi warns the currency could break the 27-lempira barrier by late September or early October, potentially raising prices for imported goods including fuel.

About 670,000 Honduran households receive remittances from abroad, with 45% relying on them as their primary income source; 80% of remittance money goes to daily consumption rather than savings or investment, according to central bank data cited by a social-justice think tank.

Honduras's chamber of commerce says the Partial Employment Law contains vague wording and legal gaps that deter businesses from using it, citing only 70 registered contracts under the law and calling for clearer employment legislation to spur job creation.

Congress approved a temporary reform allowing former employees of certain government programs to seek settlements with the state for outstanding wage claims, with payments spread over up to 18 months if budgets permit.

The electricity regulator Héctor Corrales urged Congress to approve proposed reforms to the power sector that would enable competitive bidding for contracts, arguing such measures are essential to lower and stabilize rates—a stalled bill facing Liberal Party opposition.

Honduras's maquiladora industry is launching a strategy to attract foreign investment and open new industrial parks, banking on tariff relief for Central American textiles to US markets and a joint effort with government to improve the country's investor perception.

The Agriculture Ministry unveiled a 10-year strategy investing $40 million annually to expand irrigation on 60,000 hectares, strengthen school meals for 300,000 children, and boost local farm production amid an El Niño drought affecting 134,000 families across 234 municipalities.

A UNAH economist warns that termination of Temporary Protected Status for approximately 50,000 Hondurans in the US could result in a gradual decline in remittances, potentially totaling $200 million annually if affected migrants lose formal employment and income capacity.

Standard & Poor's is conducting a periodic review of Honduras's sovereign credit rating on August 18–19, meeting with President Asfura, Congress members, and the private sector to assess the government's fiscal, economic, and institutional conditions.

The Agriculture Ministry projects rice production of 700,000 quintals (about 31,500 metric tons) in the near term, a 40% increase from 2025's roughly 500,000 quintals, as part of a strategy to reduce dependence on imports that currently supply over five million of the six million quintals Honduras consumes annually.

More than 15,500 Salvadorans entered Honduras during the August holiday week, a 31% increase over the same period last year, generating approximately $1.2 million in foreign exchange for the country, according to Tourism Minister Andrés Ehrler.

The Energy Ministry raised diesel prices by L 3.73–3.89 per gallon and kerosene by L 2.46–2.62 per gallon nationwide starting August 17, part of consecutive weeks of fuel increases affecting transport, industry, and agriculture.

The maquila industry generates about 130,000 jobs, contributes 45–50% of Honduras's gross exports, and projects $5.5 billion in shipments for 2026, though sector leaders say stronger investment climate and security are needed to sustain growth.

Economist Amparo Canales says the lempira has depreciated 1.69% against the US dollar so far in 2026, raising import costs for fuel, medicines, and production inputs and potentially pushing consumer prices higher.