Honduran remittance inflows and economic impact

Remittances serve as a critical pillar of the Honduran economy, accounting for more than 25% of the nation’s Gross Domestic Product (GDP). Data from the Central Bank of Honduras indicates that between January and July 2026, the country received $7,692.2 million in family remittances, representing an 11.2% increase compared to the same period in 2025.

The United States remains the primary source of these funds. While inflows peaked in March and June 2026, the total amount exceeds revenue from major export sectors such as coffee, shrimp, and maquila manufacturing.

At the household level, approximately 670,000 families receive these funds, with 45% of those households relying on them as their primary source of income. The majority of these funds are directed toward daily consumption, including food, health, and education, with 80% of remittances used for daily consumption and 86% used for basic needs. The Association for a More Just Society (ASJ) has expressed concern that the potential end of Temporary Protected Status (TPS) for Hondurans could lead to a mass return of migrants, potentially straining the local labor market.

By late August 2026, the US dollar reached a historic high against the Honduran lempira, surpassing the 27 mark to reach a selling price of L27.0010. Roberto Lagos, President of the Central Bank of Honduras (BCH), stated that this movement follows a “natural, projected annual depreciation of approximately 2.5%” and noted that international reserves remain strong at approximately $11.6 billion. However, economists warn that the stronger dollar could increase costs for importers, potentially impacting the prices of essential goods, fuels, and agricultural inputs due to the ongoing trade deficit. Experts warn that these rising costs could trigger inflationary pressure as expenses for transport, energy, and production are passed down to consumers.