Topic > Honduras Case Study - 721

Honduras' macroeconomic profile is expected to improve during 2015-2016, as a positive external environment supports key efforts to strengthen the country's fiscal position and stimulate economic growth. Table 5.1 presents Honduras' medium-term macroeconomic outlook. A recovery in growth is expected during 2015-2018, with the contribution of all the main sectors. The continued recovery of coffee production, combined with rising yields for other export-oriented crops, will strengthen the agricultural sector, while continued growth in manufacturing and construction will have a particularly positive impact on employment indicators. Increased investment will increase the supply of credit as the financial sector remains solvent, while expanding internet and telecommunications infrastructure will spur growth in services. Finally, falling oil prices are expected to help reduce the current account deficit. However, this forecast is based on the assumption that current fiscal consolidation efforts will continue to be implemented as part of a broader governance reform agenda and that past progress will be maintained. Consequently, sustained political commitment to the reform agenda is crucial to the positive outlook presented