## Press Release: IMF Staff Concludes Visit to Honduras

_IMF News, July 16, 2015_

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**Canonical URL:** [Press Release: IMF Staff Concludes Visit to Honduras](https://www.imf.org/en/news/articles/2015/09/14/01/49/pr15339)

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## Bibliographic details
- Published: July 16, 2015

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### Mission purpose and engagement
- IMF mission led by Mr. Lisandro Ábrego visited Tegucigalpa during July 13-16 to review economic developments and the authorities’ implementation of their Fund-supported program during 2015.
- The mission met with President Juan Orlando Hernández; Minister Coordinator of the Government Jorge Hernández Alcerro; Central Bank Governor and Head of the Economic Cabinet Marlon Tábora; Minister of Finance Wilfredo Cerrato; Minister Director of the Tax Agency Miriam Guzman; President of the National Commission of Banking and Insurance Ethel Deras; Minister of Infrastructure and Public Services Roberto Ordoñez; Vice Minister of Public Credit and Investment Rocio Tábora; and other senior government officials.
- The mission issued a staff statement conveying preliminary findings; the views expressed are those of IMF staff and do not necessarily represent the views of the IMF’s Executive Board. This mission will not result in a Board discussion.

### Recent macroeconomic developments and key statistics
- Real GDP posted a growth rate of 4 percent in the first quarter of 2015.
- Inflation was 3.6 percent in June, supported by the decline in fuels prices and appropriate macroeconomic policy management.
- By end-June net international reserves (NIR) rose by over US$370 million compared to end-2014.
- Reserve coverage increased to 4.5 months of imports.
- Data for January-May shows a substantial improvement in the finances of the central government and the state electricity company (ENEE) compared to the same period in 2014, supporting a significant strengthening of the position of the non-financial public sector.
- Spreads on external sovereign bonds have continued declining.

### Outlook and projections for 2015
- Real GDP growth is expected at 3.5 percent—slightly higher than previously anticipated.
- End-year inflation is projected at 4¾ percent.
- The deficit of the combined public sector is expected to be reduced to about 3 percent of GDP this year as targeted under the program.

### Structural reforms and policy implementation
- Tax administration is being strengthened, contributing to solid revenue growth and the improvement in the fiscal accounts.
- The authorities have developed a new medium-term fiscal framework, which is expected to guide budget formulation starting this year.
- In the electricity sector, the new regulator (CREE) has been established and is expected to become operational over the coming months.
- The mission encourages the authorities to accelerate efforts to reduce electricity distribution losses, which have remained essentially unchanged from their 2014 level.

### Closing remarks from the mission
- The mission is encouraged by the continued strengthening of the Honduran economy and notes that available information through May bodes well for the achievement of the program’s June fiscal targets.
- The mission thanked the authorities for a fruitful and cordial dialogue, as well as for their excellent cooperation and hospitality.

*Source: Press Release No. 15/339, July 16, 2015.*

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## References

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_Source: https://www.imf.org/en/news/articles/2015/09/14/01/49/pr15339_