In the first five months of 2023, Honduras experienced a 2.5% expansion in economic activity, according to a report by the Central Bank of Honduras (BCH).
This growth was primarily fuelled by sectors including hospitality and financial intermediation.
The country’s economy remained resilient despite a challenging global economic context, achieving an annual variation of 4% in the Monthly Index of Economic Activity (IMAE).
While some challenges were observed in the textile manufacturing industry, with reduced demand from the US contributing to a five-month decline, several sectors demonstrated notable growth.
The production of food products, cement, and metal items increased during the reported period.
Hospitality and restaurants (14.8%), financial intermediation and pension funds (11.4%), and transport and storage (8%) sectors were among the fastest-growing.
However, the manufacturing industry experienced a downturn of 6.3%, driven by decreased demand for textile and clothing products from the US.
The basic iron foundry industry faced a reduction in production due to raw material acquisition issues related to geopolitical tensions and production plant maintenance.
Despite these challenges, sectors such as food, beverages, and tobacco, machinery and equipment manufacturing, and non-metallic minerals recorded production increases.