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  • Essay / Honduras Case Study - 721

    Honduras' macroeconomic profile is expected to improve in 2015-2016, as a positive external environment supports critical efforts to strengthen the country's fiscal position and boost economic growth. Table 5.1 presents the medium-term macroeconomic outlook for Honduras. Growth is expected to recover over the 2015-2018 period, with contributions from all major sectors. The ongoing recovery in coffee production, combined with increasing yields of other export crops, will strengthen the agricultural sector, while continued growth in the manufacturing and construction sector will have a particularly positive impact on employment indicators. Increased investment will boost the supply of credit as the financial sector remains solvent, while the development of internet and telecommunications infrastructure will drive growth in services. Finally, the fall in oil prices should help reduce the current account deficit. However, this forecast is based on the assumption that current fiscal consolidation efforts will continue to be implemented as part of a broader agenda of governance reforms and that past progress will be maintained. Therefore, sustained political commitment to the reform agenda is essential to the positive outlook presented.