Honduras’s economic outlook for 2025 is positive

Significance The expansion was driven mainly by strong private consumption, supported by remittance inflows and increased access to bank financing. Private investment in industrial capacity and housing, along with substantial government spending on infrastructure projects and energy upgrades, also played a crucial role. Impacts Inflation is expected to remain within the Central Bank’s medium-term tolerance range of 4% plus or minus 1 percentage point this year. Political instability could erode investor confidence, weighing on foreign direct investment and potentially limiting economic growth. The scrapping of Honduras’s US extradition treaty could allow criminal organisations to consolidate their power and influence.