Honduras IMF Staff Report for the 2009 Article IV Consultation

A large external current account deficit, combined with a sharp decline in net capital inflows (due to global and domestic factors) could result in a balance of payments deficit of close to US$300 million in 2009 (11 percent of gross reserves at end-2008). On current policies, reserves could reach critically low levels by 2010–11. The growth slowdown also poses a threat to the financial system.