Honduran Current Account Surplus Will Narrow In 2021 As Economic Recovery Bolsters Imports

• Honduras’ current account surplus will narrow in the quarters ahead as rebounding economic activity pushes up goods import demand.
• Global economic recovery in 2021 will support Honduran exports and remittance inflows, which will limit the narrowing of Honduras’ current account surplus.
• Fitch Solutions revised its 2020 current account forecast to 4.5% of GDP, up from 2.3% previously, and its 2021 forecast to 2.5%, from 0.7%, as the continued spread of Covid-19 has caused longer-than-expected weakness in import demand.

(Source: Fitch Solutions)