Castro Government Leans on Record Remittances as Honduras Faces 2026 Slowdown
Honduras economy grew 3.8% in 2025 on record remittances, but the IMF sees a slowdown ahead as migration shifts and maquila output falls sharply. The post Castro Government Leans on Record Remittances as Honduras Faces 2026 Slowdown appeared first on The Rio Times .
Honduras' economy is heavily reliant on remittances, which amounted to USD 12.2 billion in 2025, accounting for 31% of GDP. The IMF projects GDP growth of 3.8% in 2025 and a slowdown to 3.3% in 2026 due to reduced remittance inflows and weaker private investment. Maquila sector output growth fell sharply from minus 1.4% to minus 8.2% between January and May 2026, indicating a slowdown in foreign demand.
The World Bank expects remittance reductions in 2026 as migration patterns change, which could moderate household consumption. Honduras' economic stability now depends on preserving external income flows, despite Washington's attempts to restrict migration.
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