IMF Staff Concludes Visit to Honduras

Press release by the IMF

November 16, 2018

An International Monetary Fund (IMF) team led by Esteban Vesperoni visited Tegucigalpa from November 12-16 to assess recent economic developments since the completion of the 2018 Article IV consultation in May and the medium-term outlook. At the conclusion of the visit, Mr. Vesperoni issued the following statement:

"Macroeconomic conditions have remained stable and growth is expected to be resilient over the next years. After rapid growth in 2017, economic activity is expected to reach 3½ percent this year, close to its trend. On the back of higher world oil prices, annual inflation reached 4.7 percent in end-October, within the 4±1 percent central bank target range. The current account deficit is projected at 3¼ percent of GDP in 2018, amid declining terms of trade due to lower coffee prices and higher oil prices. Buoyant activity in the U.S. and prudent macroeconomic policies will support growth in coming years.

"The fiscal position continues to be anchored by the Fiscal Responsibility Law, including through measures to contain the financial situation in the public electricity company. The Nonfinancial Public Sector deficit is expected to stay within the law's ceiling of 1.2 percent of GDP in 2018.

"The mission and the authorities have agreed to continue engagement towards negotiations for an economic program that could be supported by a financial arrangement with the IMF.

"The mission held discussions with Central Bank Governor and Head of the Economic Cabinet Wilfredo Cerrato, Minister of Finance Rocío Tábora, Minister Director of the Tax Agency Miriam Guzmán, commissioner of the National Commission of Banking and Insurance Adonis Lavaire and other senior officials and representatives of the private sector. The mission wishes to thank the authorities for their hospitality and all stakeholders for the candid dialogue."