Tegucigalpa, Honduras – June 12, 2025:
The International Monetary Fund (IMF) has approved the release of approximately $160 million to Honduras following the successful completion of the third reviews under the Extended Fund Facility (EFF) and Extended Credit Facility (ECF) arrangements. This latest disbursement brings the total support under these programs to $485 million, reinforcing Honduras’ robust economic progress and commitment to reform.
The Honduran economy continues to show resilience. Following growth of 3.6 percent in 2024, the economy is projected to expand by 3.5 percent in 2025, supported by a rebalancing of the economy, normalizing weather conditions, and favorable terms of trade. Inflation has declined close to the 4 percent objective. Fiscal performance continues to be strong
Honduras’ economy is thriving, with a projected growth of 3.5% in 2025, following a solid 3.6% expansion in 2024. Key drivers include favorable trade conditions, strong remittance inflows, and high coffee prices. Inflation has stabilized near the 4% target, while the fiscal deficit remains well-managed at 1.0% of GDP in 2024, with a modest projected increase to 1.5% in 2025. International reserves have also strengthened, bolstered by proactive monetary and exchange rate policies.
“Honduras is on a promising trajectory,” said Ms. Gita Gopinath, IMF First Deputy Managing Director. “The authorities’ dedication to fiscal discipline, social investment, and structural reforms is fostering stability and unlocking the country’s growth potential.”
The government’s efforts have yielded impressive results. All quantitative performance targets for December 2024 were met, alongside key structural benchmarks, including a new budget execution manual, a digital investment portal, and a diagnostic study of the foreign exchange system. These achievements reflect Honduras’ commitment to transparency, governance, and economic modernization.
Energy sector reforms are delivering tangible outcomes, with reduced losses and improved financial health for the state-owned utility company. Investments in energy infrastructure and stronger coordination across government institutions are minimizing fiscal risks and supporting sustainable growth. Meanwhile, initiatives to strengthen the social safety net are protecting vulnerable populations, and efforts to combat corruption and improve the business environment are fostering private sector confidence.
As Honduras navigates global uncertainties, including trade and migration challenges, the government’s agile policy framework and steadfast program implementation ensure continued stability. The authorities remain committed to deepening reforms, enhancing public investment, and promoting job creation to build a brighter economic future.
