January 19, 2017 / 1:38 AM / a year ago

Honduran economy to grow by 3.8 percent in 2017 -central bank head

TEGUCIGALPA, Jan 18 (Reuters) - Honduras’ economy will grow between 3.7 and 3.8 percent in 2017 after expanding by 3.6 percent in 2016, the country’s central bank head said on Wednesday, adding that certain policies implemented by U.S. President-elect Donald Trump could cause growth to fall by one percentage point.

Manuel Bautista, president of the Honduran central bank, told Reuters in an interview that “in the worst-case scenario,” moves to halt remittances or deport immigrants could lead the country’s economy to grow by 2.7 percent.

“This growth is partly threatened by the uncertainty generated by Donald Trump taking office,” Bautista said. “The impact that he could have on Honduras could be seen more clearly by remittances, rather than business and commerce.”

During the U.S. presidential campaign, Trump threatened to block remittances from immigrants living illegally in the United States.

Bautista also said that he expects inflation in Honduras to accelerate to around 4.5 percent in 2017, up from 3.3 percent last year. (Reporting by Gustavo Palencia, Writing by Natalie Schachar; Editing by Sandra Maler)

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