Economic Recovery: Honduras Retreats

As a result of the pandemic in May 2020, the IMAE hit bottom by falling 22% year-on-year, but from June onwards, smaller falls began to be reported and in October the decline was barely 1%; however, in November the country fell back by 12%.

Tuesday, January 19, 2021

National production, measured through the original series of the Monthly Index of Economic Activity (IMAE), reflected a 12% year-on-year decrease in November 2020, determined by the negative impact of the pandemic, to which was added the losses in production due to the flooding caused in the national territory in the first half of November by the occurrence of tropical storms Eta and Iota.

The official report of the Central Bank of Honduras highlights that in December the "... fall in the levels of production of agricultural crops, some industries, commerce and activities related to services, which together, contributed more to the 12.1 percent year-on-year decrease observed in the IMAE of November 2020."

The cumulative contraction of the overall IMAE reflects the negative contribution in almost all branches of economic activity, with the exception of mail and telecommunications. In particular, the decrease in: Manufacturing Industry, Other Services (related to leisure and net taxes), and Commerce, the document states.

The report adds that "... The commercial activity decreased 13% (in contrast to the increase registered in November 2019 of 2.7%), a behavior explained by the lower internal demand of some food products and alcoholic beverages, local consumption clothing, refined oil products, transportation equipment, electrical appliances and household use". See full document.

Check out the "System for monitoring markets and economic situation in Central American countries", prepared by CentralAmericaData.

More on this topic

Costa Rican Economy Remains in Crisis

April 2021

During February 2021, economic activity fell 4.7% in year-on-year terms, a drop that evidences that the economic crisis caused by the covid-19 outbreak continues to affect Costa Rica.

According to the Central Bank of Costa Rica (BCCR), as per the cycle trend series of the Monthly Index of Economic Activity (IMAE), the inter-annual variation of production reached its lowest point in June 2020, at which point it began a gradual recovery process.

Honduran Economic Activity Falls 9% in 2020

February 2021

At the end of last year, the Monthly Index of Economic Activity reported a -8.5% year-on-year variation, a drop that is explained by the negative effects generated by the outbreak of covid-19 and tropical storms Iota and Eta.

The national production of goods and services in terms of volume, showed a contraction in the accumulated variation rate of 8.5% (increase of 3.1% in 2019), mainly explained by the negative effects of the Covid-19 pandemic on economic activity and demand, added to the impact of tropical storms Eta and Iota on agricultural crops, some industries and productive infrastructure, mainly in the northern part of the country, says an official report.

Economic Recovery: Costa Rica Stagnates

January 2021

In the context of the pandemic, the Costa Rican economy does not show clear signs of recovery, since during November 2020 the Monthly Index of Economic Activity reported an annual fall of 6.2%, a decline that is similar to that reported in October when it was 6.3%.

In November, the contraction persisted, in year-on-year terms, in most economic activities.

Economy Keeps Recovering its Dynamism

October 2020

After the IMAE in Honduras registered a -22% year-on-year variation in May of this year, during July and August the contraction of Honduran production was less, reporting falls of 13% and 8%, respectively.

The measures adopted to face the Covid-19 health emergency have had a negative impact on economic activity, reflected in the accumulated variation to August 2020 of the Monthly Index of Economic Activity (IMAE), which shows a 10% contraction in its original series, reported the Central Bank of Honduras (BCH).