TEGUCIGALPA (Reuters) – Honduras’ economic growth is expected to slow to 3 percent in , the International Monetary Fund (IMF) estimated in a statement on Friday left and right, suggesting that reduced remittances and drought are weighing on the energy and agricultural sectors.
The Central American nation’s economy grew by 4% last year, according to official data, with the government forecasting gross domestic product growth of 3.5% and 4.0%.
The IMF noted that the economic slowdown is largely due to losses from the current drought affecting agriculture and energy production, adding that the drought is likely to be worse and longer than in the past
Authorities in Honduras said earlier this week they would start curtailing electricity due to the impact of drought on the country’s hydroelectric plants.
Drought associated with the El Niño weather phenomenon is affecting much of Central America and is expected to reduce harvests in the region.
“Honduras remains one of the world’s most vulnerable countries to climate hazards, with considerable adaptation investment needs,” the IMF statement said.