Friday, July 10, 2026.
Honduras Weekly Overview
Honduras continues to occupy a strategically important position in Central America, with this week’s developments reflecting the country’s ongoing efforts to strengthen governance, promote economic growth, and address long-standing security challenges. Under the administration of President Nasry Asfura, the country remains focused on improving economic conditions, attracting foreign investment, enhancing public security, and reinforcing institutional stability. As one of the region’s key transit and commercial hubs, Honduras remains heavily influenced by issues involving organized crime, migration, foreign investment, and regional diplomacy. Decisions made by the Honduran government frequently have implications beyond its borders, particularly for neighboring countries, international businesses, and organizations operating throughout Latin America.
During the past week, attention has focused on a range of developments spanning public security, government policy, economic initiatives, judicial affairs, and international relations. President Asfura’s administration continues to pursue measures aimed at combating criminal organizations while balancing the need to encourage investment, strengthen public institutions, and maintain political stability. At the same time, Honduras remains actively engaged with regional and international partners on matters involving migration, infrastructure development, trade, and security cooperation.
For the investigative, legal, and corporate risk communities, Honduras presents an environment where political decisions, regulatory changes, and security conditions can directly influence business operations and risk exposure. Understanding these evolving developments is essential for organizations with personnel, assets, or commercial interests in the country. This week’s summary highlights the most significant events and emerging trends that may impact the operating environment, providing readers with a concise overview of the issues shaping Honduras today.
Brett Mikkelson
Founder, B.M. Investigations, Inc. – Private Investigations in Panama
Private Construction in Honduras Declined 10.9% in the First Quarter
Private construction in Honduras began 2026 with a weak performance. During the first quarter of the year, total built area reached 448,600 square meters, representing a 10.9% year-over-year decline, or 54,600 fewer square meters compared with the same period in 2025, according to the Covered Private Construction Survey (ECOPT) published by the Central Bank of Honduras (BCH).
The primary driver of the contraction was a decline in residential construction, the segment that traditionally accounts for the largest share of the sector’s activity.
According to the report, residential projects totaled 289,700 square meters, marking a 21.1% decrease compared with the first quarter of the previous year.
The BCH attributed the decline mainly to lower levels of housing and apartment construction following the completion of several major residential developments in 2025. Given its significant share of overall construction activity, the residential segment had the greatest impact on the sector’s negative performance during the quarter.
Commercial construction also declined. A total of 98,800 square meters was built during the quarter, representing a 7.9% year-over-year decrease. However, construction of retail premises increased 14.5%, helping offset declines in other types of commercial developments.
Despite the overall downturn, several economic segments posted positive results. Buildings dedicated to services reached 25,100 square meters, driven primarily by the construction of primary and specialized healthcare facilities, including a project exceeding 2,000 square meters in San Pedro Sula, along with other complementary developments. This segment expanded 11.6% compared with the same quarter of 2025.
Industrial construction also exceeded 35,000 square meters, supported by the development of industrial facilities in San Pedro Sula, Villanueva, and Choloma, while the “Other” category recorded a 54.7% increase.
In terms of project volume, 2,255 new covered private construction projects were registered during the first quarter. Of these, 90.1% were residential developments, concentrated mainly in the Central District, Juticalpa, San Pedro Sula, and Santa Rosa de Copán. The remainder consisted of commercial, service, and industrial projects.
Construction activity remained concentrated in Honduras’ largest urban centers. San Pedro Sula and the Central District accounted for 53% of the total built area, while cities such as Choluteca, Santa Rosa de Copán, Siguatepeque, and La Ceiba recorded notable residential, commercial, and industrial developments, reflecting that despite the sector’s slowdown, investment opportunities continue to emerge across different regions of the country.
Who Will Buy the Presidential Aircraft? Bids to Be Opened This Friday, July 10
The sale of the presidential Embraer Legacy 600 will enter a key stage this Friday, July 10, with the opening of bids to determine the aircraft’s buyer, according to Finance Minister Emilio Hércules.
The minister said the process will be conducted publicly and transparently, with the coordinated participation of the Ministry of National Defense, the General Directorate of State Assets, and the Ministry of Finance, the agencies responsible for carrying out the sale authorized by the National Congress.
“From 9:00 a.m. to 11:00 a.m., bids will be received to identify the proposal that is most beneficial for our country,” Hércules said.
He explained that the sale fulfills a commitment made by President Nasry Asfura when he signed the law authorizing the disposal of the aircraft and is intended to reduce the costs associated with maintaining the presidential jet.
“We expect that tomorrow, through an open, public, and transparent process, the bidder who will acquire this presidential aircraft will be selected,” he added.
Hércules stated that, so far, more than seven domestic and international bidders have expressed interest in purchasing the aircraft, although he said he did not know the identities of the participants.
He explained that bids will be submitted in sealed documents to ensure confidentiality during the initial stage, after which they will be opened publicly.
Addressing questions about the aircraft’s technical condition, the finance minister said the government does not have specific concerns and confirmed that an assessment was conducted jointly with the Honduran Air Force before the aircraft was put up for sale.
“We are not going to sell something that has defects,” Hércules said in response to reports suggesting possible mechanical issues with the aircraft.
He added that, because the sale is being conducted through a public auction, the final price will depend on the highest and most advantageous bid for the State.
“This is a public auction, so the final price will be determined by the best offer and whichever proposal is most beneficial for the country,” he said.
Regarding the proceeds from the sale, Hércules explained that the funds will be deposited directly into the National Treasury, after which the government will determine how they will be allocated.
The minister also referred to previous investments made in the aircraft, noting that those expenditures remain part of the political debate, while the current administration is focused on the technical and financial aspects of the sale process.
Israel Sends Medical Team to Honduras Amid Recently Strengthened Bilateral Ties
The delegation includes specialists from Israel’s Sheba Medical Center, who will work alongside Honduran medical teams for 10 days, performing ophthalmic procedures, providing support for complex cases, and delivering specialized medical equipment to San Felipe Hospital in the capital, Tegucigalpa.
Ophthalmology is the medical specialty focused on diseases and disorders of the eye and visual system.
Israel’s Ambassador to Honduras, Nadav Goren, said in Spanish, “Israel is making available to Honduras the knowledge, expertise, and commitment of its healthcare professionals to contribute to the well-being of the Honduran people and to further strengthen cooperation between our two countries.”
Last month, Israel and Honduras signed an agreement to expand technical cooperation as part of ongoing efforts to strengthen bilateral relations.
Earlier this year, President Nasry Asfura, who is of Christian Palestinian descent, visited Jerusalem and expressed hope for a “new era” in bilateral relations with Israel, seeking to reverse tensions that emerged during the Gaza war under the previous left-wing administration.
Panama and Honduras Agree to Govern While Pursuing Greater Central American Integration
The Presidents of the Republic of Panama and the Republic of Honduras, José Raúl Mulino and Nasry Asfura, respectively, agreed to strengthen bilateral relations between their countries and work toward greater integration among the nations of Central America.
The meeting took place at the Palacio de Las Garzas during a bilateral session held as part of President Asfura’s visit to Panama to attend the 56th Regular Session of the General Assembly of the Organization of American States (OAS) and the high-level meeting commemorating the Bicentennial of the Congress of Panama.
Presidents Mulino and Asfura agreed that achieving deeper Central American integration will require strengthening and expanding the current initiatives of the Central American Integration System (SICA).
They emphasized that these efforts should focus on enhancing regional coordination to promote a region characterized by peace, freedom, and development, while fostering economic growth and expanding intra-regional trade.
Honduras on Track to Set a Record in Coffee Exports
Honduras could close the current coffee season with more than USD 2.4 billion in foreign exchange earnings from coffee exports, surpassing the USD 2.15 billion generated during the previous season, according to Vice Minister of Coffee José Francisco Ordóñez. With less than three months remaining in the coffee year, the sector is on pace for a record performance.
“There are just under three months left before the coffee year ends, and we have very positive news. We have already exported nearly 6.8 million bags and are approaching 7.1 million bags under sales contracts,” Ordóñez said.
The official attributed the strong performance to higher export volumes and increased revenues, driven by robust international demand for Honduran coffee.
Impact on Coffee-Growing Communities
Ordóñez explained that the sector’s growth translates into higher income for both the government and coffee producers while also benefiting the families who depend on coffee cultivation.
“This is excellent not only from an economic standpoint, but also because the country’s 2,300 coffee-producing villages are benefiting. The coffee industry creates a significant economic and social spillover that supports entire communities,” he said.
He added that coffee production generates employment in cultivation, harvesting, processing, transportation, and marketing, stimulating local economies across various regions of the country.
Coffee remains one of Honduras’ leading sources of employment and foreign exchange earnings. More than 120,000 families depend directly on coffee production, while hundreds of thousands of others participate indirectly throughout the supply chain, from cultivation to export.
International Markets
Regarding export destinations, Ordóñez noted that Honduras continues to strengthen its position in international markets thanks to the recognized quality of its coffee and ongoing promotional efforts.
Approximately 33% of Honduran coffee exports are shipped to the United States, while 50% to 52% are exported to countries within the European Union.
Honduran coffee is currently sold in approximately 58 international markets, helping diversify exports and strengthen the country’s presence across multiple continents.
Preparing for the Next Harvest
As the current production cycle draws to a close, authorities are preparing for the 2026–2027 coffee harvest, which officially begins on October 1.
As part of these preparations, the government continues implementing its coffee incentive program aimed at supporting small and medium-sized producers.
Ordóñez reported that more than 25% of eligible coffee growers have already received fertilizer to improve productivity before the start of the new season.
Looking ahead, the government and coffee producers are focusing on increasing farm productivity through the distribution of agricultural inputs, technical assistance, and other support measures.
The goal is to sustain the growth of Honduras’ coffee industry, enhance the international competitiveness of Honduran coffee, and secure higher incomes for the thousands of families who rely on the sector.
Authorities believe that if current trends continue, coffee will remain one of Honduras’ most important sources of foreign exchange earnings and employment.
Social Conflicts in Honduras Increase Over Water, Land, and Environmental Issues
Honduras is experiencing at least one social conflict every day, with most disputes centered on environmental, land, and water issues, Marjorie Echenique, Director of the University Institute for Democracy, Peace and Security (IUDPAS) at the National Autonomous University of Honduras (UNAH), warned on Tuesday.
Echenique called for addressing the structural causes behind these conflicts and ensuring equitable access to water in a highly vulnerable country where thousands of families are forced to purchase expensive water supplies, while the capital, Tegucigalpa, is facing water rationing every nine days due to prolonged drought and critically low reservoir levels.
“We are not paying enough attention to this issue, and we believe this is a critical moment because the lack of such a vital resource as water in communities, especially in countries with high environmental and social vulnerability like Honduras, is one of the key issues that must be carefully analyzed,” Echenique told EFE.
“We are not only talking about violent deaths, firearms, organized crime, gangs, and criminal groups, but also about conflicts related to environmental sustainability, equitable access to water, and social inclusion,” she added during the opening of the International Symposium on Community Peacebuilding: Peace Empowerment, Violence, and Forced Displacement.
She stressed that Honduras’ social landscape has become increasingly complex and argued that addressing these challenges requires understanding their structural causes through multidisciplinary collaboration and open dialogue among all sectors of society to develop lasting solutions.
Echenique also emphasized the importance of ensuring that single mothers, female heads of household, families with disabilities, and other vulnerable groups are included in the equitable distribution of water and other essential resources.
In Honduras, thousands of low-income families—particularly those living in major cities such as Tegucigalpa—lack direct access to potable water, forcing them to purchase it at high prices.
Each year, Tegucigalpa experiences severe water shortages linked to climate change. This year, water levels at the city’s main reservoirs have fallen dramatically, prompting local authorities to impose stricter rationing schedules under which many residents receive running water only once every nine days.
The symposium, which concludes on Wednesday, is organized by UNAH, through its University Institute for Democracy, Peace and Security (IUDPAS) within the Faculty of Social Sciences, in partnership with the United Nations High Commissioner for Refugees (UNHCR). The event provides an academic forum to examine the challenges and opportunities involved in building peace in communities affected by violence and forced displacement.
