{
  "title": "Honduras's New Economic Plan for Stability and Growth",
  "publication": "IMF News, July 19, 2019",
  "sourceUrl": "https://www.imf.org/en/news/articles/2019/07/17/na071819-honduras-new-economic-plan-for-stability-and-growth",
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  "summary": "Honduras has made significant progress since completing its IMF-supported economic program in December 2017. To build on previous achievements, Honduras has requested US$311 million in IMF support to foster their reform agenda and promote inclusive growth.",
  "publishDate": "2019-07-19",
  "sections": [
    {
      "heading": "Progress since the 2014–17 IMF-supported program",
      "content": "- Honduras completed its IMF-supported economic program in December 2017 and has \"made significant progress in restoring economic stability and laying the groundwork for sustainable growth.\"\n- Remaining challenges identified:\n  - High poverty.\n  - A large informal labor market.\n  - Strong dependence on agriculture.\n  - Violence that continues to challenge economic growth.\n  - Deteriorating financial situation of the public electricity company, which has strained public finances.\n- The authorities maintained prudent policies with a low fiscal deficit that \"over-performed the targets in the Fiscal Responsibility Law over the last years.\""
    },
    {
      "heading": "IMF support request and terms",
      "content": "- Honduras has requested US$311 million in IMF support to foster its reform agenda and promote inclusive growth.\n- The authorities plan to treat the financing as precautionary; they are not planning to draw on it."
    },
    {
      "heading": "Objectives and key elements of the new economic plan",
      "content": "- Overall aims:\n  - Make the economy strong and stable.\n  - Protect the most vulnerable.\n  - Support jobs and growth that benefit all.\n- Key elements listed in the plan:\n  - Securing the fiscal position by placing the public electricity company on a sustainable path through reforms in the electricity sector and through measures to maintain spending room in the budget for investment and social spending.\n  - Strengthening the monetary policy framework to buffer shocks and maintain stability.\n  - Implementing reforms to improve the business environment and governance, including stepping up efforts in the fight against corruption."
    },
    {
      "heading": "Protecting social spending and targeted interventions",
      "content": "- Fiscal strategy:\n  - Bold reforms for the public electricity company’s finances plus efforts to uphold previous revenue mobilization achievements are intended to maintain space for social spending.\n  - The fiscal program defines priority spending that will be protected going forward.\n- High-impact interventions aimed at alleviating poverty and fostering inclusive growth include:\n  - Criando con Amor\n  - Mejores Familias\n  - Ciudad Mujer\n- Policy focus: alleviate poverty, foster investment in human capital, and support women entrepreneurship and participation in labor markets."
    },
    {
      "heading": "Policies to increase women's participation in the formal labor market",
      "content": "- Current benchmark: women comprise 46 percent of the total working population in the formal labor market.\n- Plan measures to support more women in the workforce:\n  - Supporting childcare services.\n  - Facilitating credit for women.\n  - Supporting women with young children.\n- These measures combine new programs with expansion of ongoing initiatives to promote women entrepreneurship and improve access to education and labor market opportunities."
    },
    {
      "heading": "Governance, transparency, and anti-corruption reforms",
      "content": "- Planned reforms aim to:\n  - Improve governance and transparency in public finance management.\n  - Strengthen the monetary policy operational framework.\n  - Reform the electricity sector.\n- Efforts with staff and development partners to implement reforms to enhance the rule of law, with objectives to:\n  - Prevent misuse of public funds.\n  - Improve the business climate.\n  - Simplify procedures in public administration to reduce red tape and discretion that can give place to corruption.\n\nHonduras's New Economic Plan for Stability and Growth — July 19, 2019\n\n---\n\n\n References\n\n- https://www.imf.org/en/News/country-focus\n- PRESS CENTER\n- latest economic review\n- Read the press release\n- Honduras and the IMF\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2019/07/17/na071819-honduras-new-economic-plan-for-stability-and-growth"
    }
  ],
  "bullets": [
    "[Markdown version](/en/news/articles/2019/07/17/na071819-honduras-new-economic-plan-for-stability-and-growth/index.md)",
    "[Structured JSON version](/en/news/articles/2019/07/17/na071819-honduras-new-economic-plan-for-stability-and-growth/index.json)",
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    "Published: July 19, 2019",
    "Honduras completed its IMF-supported economic program in December 2017 and has \"made significant progress in restoring economic stability and laying the groundwork for sustainable growth.\"",
    "Remaining challenges identified:",
    "The authorities maintained prudent policies with a low fiscal deficit that \"over-performed the targets in the Fiscal Responsibility Law over the last years.\"",
    "Honduras has requested US$311 million in IMF support to foster its reform agenda and promote inclusive growth.",
    "The authorities plan to treat the financing as precautionary; they are not planning to draw on it.",
    "Overall aims:",
    "Key elements listed in the plan:",
    "Fiscal strategy:",
    "High-impact interventions aimed at alleviating poverty and fostering inclusive growth include:",
    "Policy focus: alleviate poverty, foster investment in human capital, and support women entrepreneurship and participation in labor markets.",
    "Current benchmark: women comprise 46 percent of the total working population in the formal labor market.",
    "Plan measures to support more women in the workforce:",
    "These measures combine new programs with expansion of ongoing initiatives to promote women entrepreneurship and improve access to education and labor market opportunities.",
    "Planned reforms aim to:",
    "Efforts with staff and development partners to implement reforms to enhance the rule of law, with objectives to:",
    "[https://www.imf.org/en/News/country-focus](https://www.imf.org/en/News/country-focus)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[latest economic review](https://www.imf.org/en/Publications/CR/Issues/2019/07/18/Honduras-Staff-Report-for-the-2019-Article-IV-Consultation-and-Request-for-a-Stand-By-48509?sc_mode=1)",
    "[Read the press release](https://www.imf.org/en/News/Articles/2019/07/16/pr19284-honduras-imf-executive-board-approves-stand-by-arrangement-and-standby-credit-facility)",
    "[Honduras and the IMF](https://www.imf.org/en/Countries/HND)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
  ],
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