Daily Market Update

Category: Honduras

November 2025
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Taiwan and Honduras have ended their diplomatic relations after more than 80 years, with Honduras recognizing Taiwan as part of China. China and Honduras have immediately established diplomatic ties at the ambassadorial level. This development leaves Taiwan with only 13 countries with which it has full diplomatic relations, mainly in the Caribbean, thereby reducing its support base in international forums such as the UN, where it lacks a seat. Paraguay, one of the remaining nations recognizing Taiwan, will hold general elections in April. The ruling Colorado Party has been pro-Taiwan, a key factor in not recognizing China.

March 17, 2023

According to Honduras’ central bank, the country’s economic activity rose by 2.8% YoY in December, up from a 0.4% rise in November. On the price front, Honduras’ annual inflation rate rose to 8.93% YoY in January from 9.8% in December. Monthly, consumer prices rose by 0.42%, up from a 0.37% rise in December.

February 8, 2023

Honduras president Xiomara Castro mentioned that she would send to congress “a profound tax fairness reform aimed at preventing abuse of exemptions and establishing a fair progressive system,” indicating the reforms will not increase taxes. The president mentioned that the economy grew by 4.1% in 2022, while inflation ended the year at 9.8%. Meanwhile, FDI inflows grew by 8.2% in 2022 to USD 758 mln.

January 23, 2023

Honduras plans to follow Gabon in attempting to issue a new form of carbon credit that might have the potential to help countries get the funds they need to protect their natural assets. The country, which is 48% covered by forest, plans to sell securities based on the emissions its forests absorb and has already submitted the mechanism.

November 25, 2022

According to Honduras’ central bank, the nation’s economic activity rose 6% YoY in August, up from a revised 2.7% growth in July. Separately, Peru’s economic activity marginally rose to 1.68% YoY in August from 1.41% in July. Meanwhile, the Peruvian government agreed to make a $1 bln capital contribution to state-owned refining company Petroperu to strengthen its financial capacity to continue operations.

October 18, 2022

Honduran government officials will meet with members of the IMF this week for an annual review, and talks on reforms in the country will continue in Washington DC in October, the IMF mission chief said during a press conference.

September 29, 2022

According to Fitch, Honduras’ political risk will remain elevated in the near term, due to high inflation that raises the risk of protests, while ongoing congressional gridlock will block most of president Xiomara Castro’s agenda. The nation’s annual inflation sits at 10.4% YoY in August, down slightly from a peak of 10.9% but still far above recent historical norms.

September 8, 2022

S&P downgraded Honduras’ outlook to negative from stable and affirmed the country’s rating at ‘BB-‘. The agency said “the negative outlook reflects our view that there is at least one-in-three chance that we could lower Honduras’ rating over the next six to eighteen months if fiscal slippage worsens the sovereign debt burden beyond our expectations”.

July 25, 2022
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