TEGUCIGALPA, Nov 5 (Reuters) - The economy of Honduras will grow between 8% and 9% this year, following a historic 9% contraction in 2020 caused by the pandemic and the destruction of hurricanes Eta and Iota, the president of the Central American nation's central bank said Friday.
The new forecast far exceeds earlier expectations for gross domestic product (GDP) growth in a range of 3.2% and 5.2%.
"The range we had from 3.2% to 5.2% has been exceeded and the new estimate for economic growth is between 8% and 9%," Wilfredo Cerrato, president of the Central Bank of Honduras (BCH), said in a recording shared with media.
If confirmed, it would be the fastest pace of growth since 1977, when a rate of 10.4% was reported, World Bank data showed.
Cerrato said greater activity in the country's retail and manufacturing sectors, as well as higher prices for one of its main agricultural exports - coffee, had helped to lift GDP growth as had an increase in remittances, mostly from Hondurans living in the United States.
(Reporting by Gustavo Palencia; Editing by Aurora Ellis)
