Honduras’ economic activity grew 5.1% in the first two months of 2024

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By LatAm Reports Staff Writers

The Monthly Index of Economic Activity (IMAE) in Honduras grew 5.1 percent between January and February, driven by the dynamism of domestic demand for goods and services, the Honduran Central Bank (BCH) reported Tuesday.

In addition to this growth compared to the first two months of 2024, the IMAE showed an increase of 5.4 percent in the average annual variation, the state issuing bank detailed in a report.

The adoption of fiscal and monetary policy measures to achieve macroeconomic stability and control inflation, improve access conditions for credit, as well as stability in household incomes from wages and remittances from family remittances, were determining elements to foster this growth, he explained.

The activities with the highest growth were financial intermediation, insurance and pension funds (13.6 per cent); private construction (13.3 per cent); hotels and restaurants (6.5 per cent); trade (6 per cent), transport and storage (5.5 per cent) and telecommunications (5.1 per cent), the Central Bank said.

On the other hand, the manufacturing industry (maquila) reported for the second consecutive month a recovery in production levels as it grows 1.4% due to the increased demand for machinery and equipment (arneses) for vehicles, mainly from the United States, Nicaragua and Mexico.

Added to this are external orders for textile products and clothing from the United States, Guatemala and Nicaragua, as well as the high volumes produced of beverages, meat and dairy for domestic consumption, the BCH added.

The IMAE is an indicator that measures the main sectors of economic activity in a country and is used for investment decision-making.

Honduras’ economy grew by 3.8 percent in 2023 despite the adverse international environment and lower external demand, according to the Central Bank.