Honduran Economic Activity Falls 9% in 2020

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.

Wednesday, February 17, 2021

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.

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

"In the result of the overall Monthly Index of Economic Activity (IMAE) as of December 2020, all branches of economic activity, with the exception of Mail and Telecommunications, show a negative contribution, being Manufacturing Industry, Other Services -related to leisure and net taxes-, Commerce, Hotels and Restaurants and private Construction, the activities with the greatest impact", summarizes the document prepared by the Central Bank of Honduras (BCH).

The report adds that "... at the end of 2020 the Manufacturing Industry decreased 15.2% (increase of 1.9% in 2019), mainly attributed to the Manufacture of Textiles and Apparel (-29%) and Machinery and Equipment (-10.9%), in response to low external demand, linked to the decline in consumption of these goods in the U.S. economy and the suspension of work by maquiladora companies due to mobility restrictions (2.5 months in the first half of the year), coupled with the flooding caused by storms Eta and Iota that affected some plants located in the north of the country."

See full report.



More on this topic

Panamanian Economy Falls 6%

May 2021

During March 2021, the Monthly Index of Economic Activity registered a -6% year-on-year variation, a decrease that is attributed to the effects of the sanitary emergency caused by Covid-19.

According to the most recent report of the General Comptroller's Office of the Republic, the Monthly Index of Economic Activity (IMAE) accumulated from January-March 2021 showed a decrease of 10.06%, compared to the same period of 2020.

Honduran Economy is Still Recovering

April 2021

After in January 2021 in the context of the crisis caused by the pandemic, the Monthly Index of Economic Activity at the national level reported a 6% decrease in year on year terms, in February a smaller drop was registered, amounting to 3.5%.

The drop recorded in February continues to reflect the negative effects of the Covid-19 pandemic and the damage caused by the tropical storms of November 2020, affecting the evolution of most economic activities, mainly in "... Agriculture, Livestock, Forestry and Fishing; Manufacturing Industry; Transportation and Storage; Hotels and Restaurants; Commerce; and Private Construction; these contractions have been partially offset by the boost in the services of Mail and Telecommunications and Financial Intermediation", informed the Central Bank of Honduras (BCH).

Economic Recovery: Honduras Retreats

January 2021

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%.

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.

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).

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