World Bank2022-03-042022-03-042022-02-01https://hdl.handle.net/10986/37081The challenges and opportunities currently faced by Honduras remain broadly in line with those identified in the country’s Systematic Country Diagnostic (SCD), prepared in 2015. Since 2015, substantive analytic work has deepened the understanding of challenges and opportunities but not materially modified the SCD’s findings. The COVID-19 pandemic, coupled with two Category 4 hurricanes—Eta and Iota—in fall 2020, further exposed and compounded the country’s fragilities. This SCD Update highlights recent developments in macroeconomic, sectoral, and poverty-reduction performance and the status of Honduras’s reform efforts. It is best read in conjunction with the 2015 SCD.CC BY 3.0 IGOSTATE-OWNED BANKSSTATE-OWNED ENTERPRISEGOVERNMENT CAPACITYECONOMIC MANAGEMENTSOCIAL PROTECTIONDOMESTIC ECONOMYJOB CREATIONTOTAL FACTOR PRODUCTIVITYWorld Bank10.1596/37081