Honduras’ economic expansion stayed on track in 2016. Supported by an accommodative monetary policy and stable external conditions, the short-term prospects look promising. Economic activity will benefit from low interest rates and easier access to credit, leading to an improved investment climate. The current account balance will stay in negative territory although exports are expected to remain buoyant. The moderation of oil prices throughout the year will curb end-of-year inflation. This should support purchasing power and consequently private consumption.