Structural reforms have continued to strengthen Honduras' economic and fiscal resilience. President Juan Orlando Hernández, reelected in November 2017, will remain committed to disciplined public finance policies. The government faces challenges in establishing clear rules for reelection and continuing to address crime and corruption issues. Per capita GDP is low, and maintaining sustainable economic growth is a policy priority. The fiscal deficit will remain contained, allowing for small increases in net general government debt. We expect Honduras to maintain low general government deficits of about 0.3% of GDP on average in 2018-2021. The government has advanced reforms in the electricity sector that have reduced financial losses, though challenges remain. Higher oil prices, lower coffee production, and a slowdown in remittance
