This note examines the effective income tax rates of top earners in Honduras, using a novel approach that links personal and corporate income tax data. This comprehensive income measure, achieved through collaboration with the Honduras Tax Authority (SAR), reveals a crucial link between the...

This paper examines the impact of procedural justice and sanctions on police legitimacy in a middle-income context using a between-subjects vignette experiment among civilians and police officers in Honduras. The scenarios involved civilian-police interactions following a minor infraction,...

This paper examines the impact of procedural justice and sanctions on police legitimacy in a middle-income context using a between-subjects vignette experiment among civilians and police officers in Honduras. The scenarios involved civilian-police interactions following a minor infraction,...

An IMF team conducted a Public Investment Management Assessment including the module on climate change in Honduras. It identified strengths related to the recent reforms in the National Public Investment System of Honduras (SNIPH), but also several weaknesses along the investment cycle that...

The Executive Board approved 36-month, US$822 million arrangements under the Extended Fund Facility (EFF) and the Extended Credit Facility (ECF) for Honduras in September 2023. The IMF-supported program aims to strengthen macroeconomic stability, create fiscal space for productive investment and...

[This report is only available in Spanish] Honduras solicitó asistencia técnica al Departamento de Finanzas Públicas sobre políticas climáticas. Este es un resumen del informe de asistencia técnica y las recomendaciones brindadas a las autoridades. El informe incluye recomendaciones para...

Visual Continuous Time Preferences (VCTP) is a new tool for measuring time preferences that synthesizes the simplicity of Multiple Price List (MPL) and the precision of Convex Time Budget (CTB) tasks. We evaluate this tool in the field, in rural Honduras, to test whether running the task with...

The objective of this feasibility study is to identify disaster risk finance and insurance (DRFI) solutions for up to 1.9 million family farmers in El Salvador, Guatemala, and Honduras. This study is motivated by an emerging consensus on the need to design and implement large-scale DRFI...

This paper presents distributional national accounts for Honduras over 2003-2019, using survey microdata, administrative tax records, and national account aggregates. It assembles comprehensive data on formal income for high-income individuals, including information on corporate shareholders,...

The Country Opinion Survey in Honduras assists the World Bank Group (WBG) in better understanding how stakeholders in Honduras perceive the WBG. It provides the WBG with systematic feedback from national and local governments, multilateral/bilateral agencies, media, academia, the private sector,...

Honduras is highly vulnerable to extreme natural hazards, which are expected to increase because of climate change. These will have significant consequences for all of Honduran society, affecting important economic sectors and threatening food and water security and human health. The impacts of...

Honduras remains one of the poorest and most unequal countries in the Western Hemisphere. Structural exposure to external shocks and natural hazards go hand in hand with high levels of crime, political instability, and a weak institutional and business environment. These problems have undermined...

This note aims to close the knowledge gap about the effectiveness and capacity of labor migration sending systems in NCA countries. The report assesses whether NCA countries have the fundamental elements of an effective labor migration sending system, identifies the missing elements, and offers...

Honduras has a small and informal economy that is predominantly agricultural, but its strategic location, solid industrial base, ample resources, and young population indicate potential for inclusive and resilient economic growth. Despite the growth, Honduras remains one of the poorest and most...

The Honduran economy has shown remarkable resilience to various domestic and external shocks over 2020-22, and real GDP is now around 6 percent above pre-pandemic levels supported by the authorities' prudent policies. That said, Honduras faces long-standing social and structural challenges that...

Honduras, already among the poorest countries in the Latin America and Caribbean (LAC) region, experienced weak poverty reduction in 2014-19 compared to other countries in the region. The COVID-19 pandemic and Hurricanes Eta and Iota led to a rise in poverty from 2019 to 2020; it is likely that...

The challenges and opportunities currentlyfaced by Honduras remain broadly in line withthose identified in the country's SystematicCountry Diagnostic (SCD), prepared in 2015.Since 2015, substantive analytic work has deepened the understanding of challenges and opportunities but not materially...

Tax authorities often use low-cost communication with taxpayers to encourage voluntary compliance and avoid other costly interventions. This paper reports findings from an experiment with more than 30,000 taxpayers in Honduras, designed to assess how taxpayers with different risk scores respond...

Honduras has been Central America’s focal point for drug trafficking towards the United States for years as the region’s main transit country. Recent court cases held in the United States have revealed the symbiotic relationship between state actors, business elites and drug trafficking...

The objective of this study is to evaluate the relationship between public expenditure for education and human capital on economic growth in Honduras from 1990 to 2020, using the instrumental variables (IV) method, which incorporates the components of public spending on education and human...

The Coronavirus (Covid-19) pandemic has had widespread negative effects in developing countries around the world, generating an unprecedented shock. Latin America and the Caribbean (LAC) was a particularly affected region, recording a significant contraction in regional GDP and international...

Honduras has significant investment potential, with ample productive resources, a solid industrial base, a market-oriented reform agenda, a strategic location with access to many international markets, and a growing labor force. The country's young and growing population is yielding a...

The ebook edition of this title is Open Access and freely available to read online. Attaining the 2030 Sustainable Development Goal of Gender Equality focuses on Sustainable Development Goal number five (SDG#5): ending all forms of discrimination against women and girls. Examining family...

Authored by Ruth A. de Frutos García, this Migration Research Series paper explores the impacts of the COVID-19 pandemic on misinformation related to migration and migrants through two case studies: that of the migrant caravan in Honduras that took place in 2020 and that of the Filipino...

We use data from Guatemala and Honduras to investigate some implications of the Purchasing Power Parity theory over the long run. In particular, we address two questions. First, to what extent did the fixed exchange rate regime impose macroeconomic discipline on these countries. Second, what was...

The protracted pandemic and two tropical storms have hit Honduras hard. Despite authorities' responses, these shocks continue to weigh on activity; reconstruction needs are high while the outlook remains uncertain. The authorities plan to rebuild a more climate-resilient economy, given Honduras'...

This report evaluates Honduras's fiscal transparency practices in relation to the IMF Fiscal Transparency Code (FTC). Honduras's score is similar to those of other Latin American countries and emerging market economies that have undergone the evaluation. In relation to the fiscal transparency...

In the face of declining fiscal space and the need to build back better after the Coronavirus (COVID-19) pandemic, governments are turning to public-private partnerships (PPPs) to deliver infrastructure assets and services. Disclosure of information plays an important role in PPP programs....

The DeMPA is a methodology for assessing public debt management performance through a comprehensive set of indicators spanning the full range of government debt management functions. The DeMPA tool presents the 14 debt performance indicators along with a scoring methodology. The DeMPA tool is...

Despite advances in the growth reform agenda in the last decade, Honduras remains the second-poorest country in Central America, with one of the lowest growth rates in income per capita. The objective of this study is to investigate the drivers and constraints of growth and productivity in...