Honduras: Request for a Stand-By Arrangement and an Arrangement Under the Standby Credit Facility
Electronic Access:
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Summary:
The government of President Hernandez inherited a difficult macroeconomic situation upon taking office in January 2014. Economic growth decelerated significantly in 2013, driven mainly by lower private demand from policy uncertainty and by weaker trade-partner growth. The fiscal accounts weakened considerably in 2011–13, reflecting sizeable increases in government spending and in the deficit of the state-owned electricity company. The relaxation of fiscal policy has led to a rapid increase in public debt, which would continue into the medium term absent a change in economic policies. The balance of payments position has also weakened over the last three years, reflecting both expansionary macroeconomic policies and a less favorable terms of trade.
Series:
Country Report No. 2014/361
Subject:
Economic sectors External debt Fiscal consolidation Fiscal policy National accounts Public debt Public sector Revenue administration
English
Publication Date:
December 24, 2014
ISBN/ISSN:
9781498323758/1934-7685
Stock No:
1HNDEA2014001
Pages:
94
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