Successfully alleviating poverty,protecting social gains, and promoting shared prosperity inHonduras requires an ongoing commitment to soundmacroeconomic and fiscal policies. The experience of thepast decade has demonstrated that while accelerated growthis critical to increasing incomes among the poor,macroeconomic stability as well as improved fiscal space toadjust spending policies during downturns are equally vitalto ensuring that these gains are sustained over time. In thepast, substantial imbalances in the public accounts and highlevels of debt have destabilized the Honduran economy,undermining wealth creation and perpetuating poverty. In thecontext of a slow and uncertain global recovery, reinforcingthe countrys resilience to shocks will depend on theauthorities’ commitment towards fiscal stabilization. Thesuccessful completion of the fiscal consolidation processwill be a crucial first step to free up resources fortargeted antipoverty programs. Honduras has been slow torecover from the global economic crisis, but recentdevelopments present cause for optimism. After a negativegrowth of 1.4 percent in 2009, economic growth increased toan average of 3.8 percent during 2010-12, still belowpre-crisis levels, before sliding to 2.8 percent in 2013. In2014, growth improved to 3.1 percent and the outlook isexpected to improve during 2015-2016, as the global economycontinues to recover. Nevertheless, growth is expected toapproach but not reach the rates observed in the mid-2000s.
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