Honduras: Economic Activity Grows 13%

During March 2021, the Monthly Index of Economic Activity reported a variation of 13% when compared to the levels reported in the same month of 2020, a period that was marked by the closure of the economy due to the pandemic.

Monday, May 17, 2021

The economic activities that most contributed to the positive result were: Manufacturing Industry and Commerce, and to a lesser extent, Mail and Telecommunications, Financial Intermediation and Other Services -related to health and net taxes-. These contributions were partially offset by the negative variations in agricultural activities, Transportation and Storage, and Hotels and Restaurants, highlights the report of the Central Bank of Honduras (BCH).

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Manufacturing Industry presented a 6.8% positive variation (5.9% decrease as of March 2020), mainly due to the increase in the manufacture of Textiles and Clothing (12.1%) and the Manufacture of Machinery and Equipment (60.4%), as a response to the higher external demand, related to the increase in the consumption of these goods -basically- in the US economy, explains the official document.

The report adds that "... Trade in goods as of March 2021 increased 5.6% (-3.7% in the same period of the previous year when the quarantine began in the country), behavior driven -mainly- by sales of transportation equipment, radio, television and other household appliances, as well as pharmaceutical, food and refined petroleum products".

Agriculture, Livestock, Forestry and Fishing, contracted 7.9% to March 2021 (-4.8% in the same period of 2020), determined by losses and delays in harvests caused by the passage of tropical storms at the end of 2020, which affected most agricultural crops (-11%): sugar cane, African palm, basic grains and bananas; likewise, a decrease continued to be observed in the production of melons and watermelons, product of lower external and internal demand, explained the BCH.

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Economic activity measured by the IMAE estimate, up to March 2017, showed growth of 3.2% (2.0% in March 2016). [GRAFICA caption="Clic para interactuar con la gráfica"]