Honduras: Request for a Stand-By Arrangement and an Arrangement Under the Standby Credit Facility

December 24, 2014

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Format: Chicago

Honduras: Request for a Stand-By Arrangement and an Arrangement Under the Standby Credit Facility, (USA: International Monetary Fund, 2014) accessed November 8, 2024

Summary

The government of President Hernandez inherited a difficult macroeconomic situation upon taking office in January 2014. Economic growth decelerated significantly in 2013, driven mainly by lower private demand from policy uncertainty and by weaker trade-partner growth. The fiscal accounts weakened considerably in 2011–13, reflecting sizeable increases in government spending and in the deficit of the state-owned electricity company. The relaxation of fiscal policy has led to a rapid increase in public debt, which would continue into the medium term absent a change in economic policies. The balance of payments position has also weakened over the last three years, reflecting both expansionary macroeconomic policies and a less favorable terms of trade.

Subject: Economic sectors, External debt, Fiscal consolidation, Fiscal policy, National accounts, Public debt, Public sector, Revenue administration

Keywords: CDCDCD, Central America, Central bank, CR, Deficit, Europe, Fiscal consolidation, Global, Government, Honduran authorities, IFC financing, IMF quota, ISCR, Public sector, Recovering coffee sector, SCF arrangement, Sound monetary policy, Support Honduras

Publication Details

Pages:

94
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2014/361
Stock No:

1HNDEA2014001
ISBN:

9781498323758
ISSN:

1934-7685

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