September 26, 2023
The Honduran economy has shown remarkable resilience to various domestic and external shocks over 2020-22, and real GDP is now around 6 percent above pre-pandemic levels supported by the authorities’ prudent policies. That said, Honduras faces long-standing social and structural challenges that hinder its development potential and stability. Under the previous Fund-supported program that expired in January 2022, Honduras succeeded in enhancing the quality of fiscal policy and implementing institutional reforms. The current authorities are committed to maintaining prudent macroeconomic policies and advancing structural reforms while fostering inclusive growth by creating space for critical social spending and infrastructure investment. In this context, the authorities have requested a new Fund arrangement to anchor their economic and institutional reform agenda.
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