Macroeconomic Forecast Honduras

March 2007 | Macroeconomic Forecasts

BMI View: As we had anticipated, due to a large amount of foreign debt relief, Honduras' external debt load (public plus private) fell dramatically in 2006, from US$5.22bn to US$3.83bn (our forecast was for US$3.7bn). Public debt came down by US$1.5bn, thanks in large part to US$1.3bn in forgiven debts. At the same time, private sector external debt rose by 6.3%, to US$821mn. We forecast that public debt will remain low, and decline steadily over the next decade as more loans are forgiven.

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