Honduras

Prospects Continue to Deteriorate

The outlook for the economy continues to weaken, as a result of the global economic downturn, which is causing remittances to plunge. That said, the Central Bank remains relatively optimistic and expects the economy to expand between 2.0% and 3.0% this year. On a positive note, declining inflation has allowed the Bank to ease monetary policy in order to stimulate economic growth. Meanwhile, negotiations with the International Monetary Fund for a US$ 700 million loan initially set to start in June have been postponed.