## IMF Staff Concludes Visit to Honduras

_IMF News, April 30, 2022_

## Source details

**Canonical URL:** [IMF Staff Concludes Visit to Honduras](https://www.imf.org/en/news/articles/2022/04/30/pr22137-honduras-imf-staff-concludes-visit)

## Other formats

- [Markdown version](/en/news/articles/2022/04/30/pr22137-honduras-imf-staff-concludes-visit/index.md)
- [Structured JSON version](/en/news/articles/2022/04/30/pr22137-honduras-imf-staff-concludes-visit/index.json)
- [Bundle manifest](/en/news/articles/2022/04/30/pr22137-honduras-imf-staff-concludes-visit/bundle-manifest.json)

## Bibliographic details
- Published: April 30, 2022

---

### Mission overview
- IMF team led by Joyce Wong visited Tegucigalpa from April 27 to29 to discuss recent economic developments, the impact on the Honduran economy of the COVID-19 pandemic and the war in Ukraine, and the authorities’ reform plans.
- The mission held meetings on the 2022 budget, public investment plans, debt management, electricity sector reforms, and monetary and financial policy.
- The mission will not result in a Board discussion; views expressed are those of IMF staff and do not necessarily represent the views of the IMF’s Executive Board.

### Economic performance and drivers
- Economic growth in Honduras reached 12.5 percent in 2021.
- Recovery was led by strong remittances, which supported private consumption, and robust external demand boosted by the U.S. recovery.

### Inflation dynamics
- The central bank’s reference range is 3 to 5 percent.
- After remaining within that range for most of 2021, inflation breached the upper band in December and neared 7 percent y/y at end-March.
- Inflationary pressures largely reflect supply side factors, together with some demand pressures from strong remittances and higher government spending.

### Authorities’ priorities and reforms
- Authorities expressed commitment to:
  - protecting the vulnerable,
  - combating poverty and migration,
  - improving the management of public finances and investment execution,
  - enhancing institutions and transparency.
- Discussions laid important groundwork for further engagement with the Fund and continuing capacity development.

### Risks and policy recommendations
- Heightened global risks and continuing shocks noted include the COVID-19 pandemic, tropical storms Eta and Iota, and the war in Ukraine.
- The IMF team emphasized that, given the domestic context and heightened global risks, authorities must remain vigilant.
- Policy priorities recommended:
  - Protect the most vulnerable people,
  - Preserve macroeconomic stability,
  - Maintain fiscal discipline,
  - Continue efforts to improve public financial management and transparency.

_Press Release No. 22/137 — April 29, 2022_

---


## References

- [Honduras and the IMF](http://www.imf.org/external/country/HND/index.htm)
- [Press Releases](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2022/04/30/pr22137-honduras-imf-staff-concludes-visit_