HONDURAS-ECONOMIA-IMF/ – REUTERS Agency
TEGUCIGALPA, June 17 (Reuters) – The growth of the Honduran economy would slow to around 3% in 2023, the International Monetary Fund (IMF) estimated, due to a decrease in remittances and pressures on the energy and agricultural sectors derived of the current drought.
The economy of the Central American country grew 4% last year, according to official data, and the Government has forecast a growth of the Gross Domestic Product (GDP) of between 3.5% and 4.0% this year.
The slowdown is mainly due to losses caused by the drought currently affecting agricultural and energy production, the IMF said in a statement late Friday, adding that the dry spell could be more severe and longer than expected.
“Honduras remains one of the world’s most vulnerable countries to climate catastrophes and has significant investment needs,” the IMF said in the statement.
Honduran authorities this week imposed power rationing due to the drop in the generation capacity of hydroelectric dams due to the drought.
Drought, linked to the El Niño weather phenomenon, is affecting much of Central America and is expected to reduce the region’s harvests. (Reporting by Gustavo Palencia; Writing by Valentine Hilaire; Editing by David Alire Garcia; Translated by Adriana Barrera)
Source: Ambito
