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The real GDP of the Honduran economy grew by approximately 3.5 percent in 2023, reflecting a deceleration when compared to the 4 percent recorded in 2022. This reduced growth is partially attributable to the decline in the demand for textiles in the United States. The sustained growth of remittances and credit supported household consumption and investment, partially offsetting the decline in exports.

The deceleration in GDP growth is projected to continue in the near future, with rates of 3.4 percent in 2024 and 3.3 percent in 2025, as slower growth in the United States will slow the recovery of manufacturing exports and reduce the growth rate of remittance inflows. GDP growth is expected to strengthen gradually from 2026 onwards, supported by more favorable global conditions and dynamic public and private investment.

In 2022, the inflation rate reached 9.1 percent, the highest since 2008, due to the strong impact of rising global food and fuel commodity prices, while the monetary authorities did not raise the benchmark interest rate. However, since February 2023, the inflation rate has declined, in keeping with the decline in international food and fuel prices, and in response to liquidity absorption measures instituted by the central bank. In February 2024, inflation stood at 4.5 percent.

Honduras has made progress in reducing poverty, although it still ranks as one of the poorest and most unequal countries in the region. Poverty, at a threshold of US$6.85 per capita per day, is estimated to reach 51.3 percent of the population in 2023, down slightly from 52.4 percent in 2022. However, this percentage is above the levels observed before the COVID-19 pandemic.

In addition, human development outcomes in the country are among the lowest in Latin America and the Caribbean. For example, according to the World Bank's Human Capital Index, a child born in Honduras will be almost half (48 percent) as productive when he or she grows up as he or she could be if fully educated and healthy. This is lower than the average for the Latin American and Caribbean region, which is 56 percent.

In order to create more opportunities for the Honduran population, especially the most vulnerable, higher economic growth must be fostered, productivity and competitiveness increased, and inclusion promoted by improving access to quality services and jobs. At the same time, institutional reforms are needed in critical areas, such as the sustainability of the energy sector, governance, and the business environment.

Honduras also faces the challenge of strengthening resilience to climate change and improving governance and the quality of institutions, for example through greater transparency and independence of constitutional authorities.

Last Updated: Apr 10, 2024


Honduras: Commitments by Fiscal Year (in millions of dollars)*

*Amounts include IBRD and IDA commitments
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HONDURAS +504 2264-0200
Edificio Corporativo 777, nivel 9, Col. Lomas del Guijarros Sur, Tegucigalpa, Honduras
USA +1 202 473-1000
1818 H Street NW, Washington, DC 20433