The economic activity of Honduras grew by 5% from January to August 2022, an improvement driven by the increase in domestic and external demand, as well as economic policy measures to counteract the effects of the international environment, the Central Bank (BCH) reported on Wednesday.

Between January and August of this year, most economic activities “have exceeded the production levels of 2019”, which means the normalization of the productive process of goods and services and generates an improvement in household income, said the entity.

The increase in remittances sent to Honduras has boosted domestic demand through consumption, the BCH said in its report on the Monthly Index of Economic Activity (IMAE) until August, an indicator that measures the main sectors of a country’s economic activity and is used for investment decision-making.

A total of 6,483.5 million dollars has been received by Honduras from its nationals abroad during the first nine months of the year, an increase of 20.4% compared to the same period of 2021, according to BCH figures.

The activities that registered the highest growth in the first eight months were hotels and restaurants (26.4%); financial intermediation, insurance and pension funds (14.5%); transport and storage (12.3%); private construction (7.7%); manufacturing (6.8%), and trade (3.8%), he added.

The telecommunications sector grew by 1.6%, while agriculture, livestock, forestry and fishing registered a reduction of 0.4%, details the document.

The year-on-year variation in economic activity in Honduras was 6%.

Honduras’ economy grew by 12% in 2021, a figure attributed to the “economic reopening that reflected greater dynamism in productive activities” of the Central American country, according to figures from the Central Bank.

At the end of 2022, according to a review of the Monetary Program, Honduras’ economy will grow between 4% and 4.5% due to a “favorable evolution of external demand and private consumption, the result of greater flows of family remittances.”