Honduras registered a 3.3% YoY decline in family remittances in January, totaling USD 661 mln. This contraction continues the downward trend observed in 2023, contrasting with the double-digit growth in 2022. Despite a strong US labor market, the fall in remittances poses risks to Honduras’s domestic economy, especially if US economic conditions tighten. This decline in remittances has also contributed to a reduction in Honduras’s net international reserves, which fell by USD 124.2 mln in January, accelerating the pace of decline seen throughout 2023.