Honduras

In recent years, the Honduran economy has grown moderately, with real GDP accelerating to 3.8 percent in 2025, supported by record remittances and strong coffee exports. Growth is projected to slow to 3.4 percent in 2026 as remittances moderate, oil prices remain elevated, and El Niño-related drought weighs on agriculture and hydropower.

After remaining stable at 4.6 percent in 2025, inflation is projected to rise to 5.2 percent in 2026, slightly above the central bank's target range of 4 percent ±1 percentage point, driven primarily by higher energy prices.

Maintaining macroeconomic stability while addressing significant development and infrastructure needs remains an important policy challenge. Continued efforts to strengthen public financial management, improve the efficiency of public spending, and enhance the delivery of public services will be critical to sustaining development gains.

While Honduras has made progress in reducing poverty, it remains among the poorest and most unequal countries in Latin America and the Caribbean. Under the upper-middle income poverty line of US$8.30 per capita per day (2021 PPP), poverty in 2025 is estimated to have declined to 43.1 percent of the population (from 54.5 percent in 2019). Poverty under the US$3.00 threshold continues to be high by regional standards, at an estimated 9.3 percent in 2025.

Structural challenges include weak productive capacity, high vulnerability to natural hazards coupled with a low coping capacity, and widespread crime and violence, which fuel emigration. The economy is critically reliant on remittances, which now represent around 30 percent of the Honduran GDP.

In addition, human development outcomes in the country are among the lowest in the region, and both education and health deficits stand as binding constraints on overall development. The World Bank’s Human Capital Index Plus for Honduras stood at 140 in 2025, way below the Latin America and the Caribbean average of 194, with low expected years of schooling and low tertiary education completion rates.

Last Updated: October 6, 2026

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The World Bank Group (WBG) supports Honduras in reducing poverty through loans, grants, technical assistance, advisory services, and knowledge sharing. Its strategy aims to build a green, inclusive, and resilient economy by improving human development, promoting job creation, and strengthening resilience to natural hazards.

Working with the public sector, the World Bank’s current portfolio includes 11 projects totaling US$752 million. The program combines investment financing, technical assistance, analytical work, and policy dialogue to support improvements in service delivery, institutional capacity, and development outcomes. Additional grant support comes from global programs such as the Global Agricultural and Food Security Program (GAFSP), the Global Financing Facility (GFF), the Global Partnership for Education (GPE), and the Japan Social Development Fund (JSDF). These efforts focus on rural competitiveness, water, education, health, food security, digital development, transport, public financial management, governance, institutional strengthening, and disaster risk management.

Since the COVID-19 pandemic, the institution has supported Honduras through emergency response, health system strengthening, and disaster and climate risk management. Ongoing operations are helping strengthen climate resilience, improve access to basic services, expand digital government initiatives, support public sector modernization, and enhance economic opportunities for vulnerable populations and rural communities, including through the ComRural project.

Working with the private sector, the International Finance Corporation (IFC) has an active portfolio totaling US$205 million. In recent years, most of IFC’s activities have focused on the financial markets and manufacturing sectors, while also supporting trade finance and engaging in advisory projects.

In 2025, the WBG established a Joint Representation in Honduras, bringing together the World Bank, IFC, and the Multilateral Investment Guarantee Agency (MIGA) to strengthen public-private collaboration, mobilize investment, support reforms, and create jobs.

Last Updated: October 6, 2026

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The Country Partnership Framework (CPF) 2023-2027 for Honduras, approved by the World Bank Group (WBG) in February 2023, aims to promote human development, economic growth, job creation, and climate resilience. The CPF guides the WBG’s work in Honduras over four years, focusing on strengthening social protection, expanding access and quality of public services, and improving food security and climate resilience. Investments target better infrastructure, clean energy production, rural job creation, and increased access to credit for women, small producers, and businesses.

The CPF is implemented through a combination of investment financing, technical assistance, analytical work, and policy engagement. Reinforcing institutional effectiveness, improving implementation capacity, and enhancing preparedness for climate and disaster-related shocks are important cross-cutting priorities across the program.

The strategy also includes analytical work and technical assistance in key areas such as job creation, digital government, public health, trade facilitation, education, and environmental protection.

The WBG supports Honduras in strengthening the rule of law and addressing fragility, with a focus on inclusion for Indigenous Peoples, Afro-descendants, women, people with disabilities, youth, the elderly, sexual minorities, and other vulnerable groups.

You can download the CPF here

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