TEGUCIGALPA, March 8 (Reuters) - Honduras is likely to see its economy grow by up to 4.2 percent this year, driven largely by expansion in its construction, financial and agriculture sectors, the head of the central bank said on Thursday.
Wilfredo Cerrato, president of the Honduran central bank, told a news conference that economic growth this year could be as low as 3.8 percent.
Last year, the Central American nation's gross domestic product (GDP) grew by 4.8 percent.
Cerrato explained that the lower growth rate forecast for 2018 is probably due to less public spending as well as lower coffee prices.
Honduras is Central America's top producer of coffee, a major source of its export revenue.
Remittances sent home from Hondurans living abroad are expected to rise 4.2 percent to reach $4.66 billion, central bank data shows.
The Honduran government expects a fiscal deficit of 3.2 percent of GDP in 2018, down from 2.7 percent last year.
Inflation is seen reaching 4 percent this year, down from 4.7 percent in 2017.
The central bank sees similar growth and inflation rates in 2019, while the fiscal deficit is seen at 3.3 percent of GDP, according to the bank's 2018-2019 monetary program. (Reporting by Gustavo Palencia; Writing by David Alire Garcia; Editing by Clarence Fernandez)