Economic resilience continues, and the recalibration of monetary and exchange rate policies initiated in 2024 is bearing fruit, with the economy rebalancing, inflation contained, international reserves strengthening, and foreign exchange market conditions improving. Progress under the...

This policy brief is based on the "Mapping childcare programs and gaps in provision in areas with employment opportunities for women in Honduras" report. The assessment examines the childcare needs of urban households with children ages under 6 in Honduras by investigating time use, care needs,...

This study examines the care arrangements and needs of urban households with young children in Honduras and measures them relative to the provision of childcare services in the country. The study also investigates the changing burden of childcare during the COVID-19 pandemic and the resulting...

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...

We analyse the disconnect between the intended design and actual outcomes of Honduras's social protection system. The current framework results in low coverage rates and limited redistribution, and imposes an implicit tax on formal activity. It also discourages productivity-enhancing decisions...

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,...

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...

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...

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,...

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,...

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...

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,...

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 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...

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...

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...

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...

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...

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...

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...