Economic overview Honduras, in 36 editions.

Honduras is one of the poorest countries in the Western Hemisphere. Agriculture is Agriculture, the most important sector of the economy, accounting accounts for nearly 30% of GDP, employing employs 62% of the labor force, and producing produces two-thirds of exports. Productivity remains low, however, leaving considerable room for improvement. Although industry is low. Industry, still in its early stages, it employs nearly 15% 9% of the labor force, accounts for 23% 15% of GDP, and generates 20% of exports. The service sectors, including public administration, account for 48% 50% of GDP and employ nearly 20% of the labor force. Basic problems facing the economy include a high rapid population growth rate, a growth, high unemployment rate, unemployment, sharply increased inflation, a lack of basic services, a large and inefficient public sector, and an the dependence of the export sector dependent mostly on coffee and bananas, which are subject to sharp price fluctuations. Despite government efforts at reform and large-scale foreign assistance, the economy still is unable to take advantage of its sizable natural resources.

Honduras is one of the poorest countries in the Western Hemisphere.
Agriculture, the most important sector of the economy, accounts for nearly 30% more
than 25% of GDP, employs 62% of the labor force, and produces two-thirds of
exports. Productivity remains low. Industry, still in its early stages,
employs nearly 9% of the labor force, accounts for 15% of GDP, and generates
20% of exports. The service sectors, including public administration,
account for 50% of GDP and employ nearly 20% of the labor force. Basic
problems facing the economy include rapid population growth, high
unemployment, sharply increased inflation, a lack of basic services, a large
and inefficient public sector, and the dependence of the export sector
mostly on coffee and bananas, which are subject to sharp price fluctuations.
Despite government efforts at reform and large-scale foreign assistance, the
economy still is unable to take advantage of its sizable natural resources.

Honduras is one of the poorest countries in the Western Hemisphere.
Agriculture, the most important sector of the economy, accounts for more
than 25% of GDP, employs 62% of the labor force, and produces two-thirds of
exports. Productivity remains low. Industry, still in its early stages,
employs nearly 9% of the labor force, accounts for 15% of GDP, and generates
20% of exports. The service sectors, including public administration,
account for 50% of GDP and employ nearly 20% of the labor force. Basic
problems facing the economy include rapid population growth, high
unemployment, sharply increased inflation, a lack of basic services, a large
and inefficient public
sector, and the dependence of the export sector
mostly on coffee and
bananas, which are subject to sharp price fluctuations. A far-reaching
Despite government efforts at reform and large-scale foreign assistance, the
economy still program initiated by President CALLEJAS in 1990 is unable beginning to take advantage of its sizable natural resources.
hold.

Honduras is one of the poorest countries in the Western Hemisphere.
Agriculture, the most important sector of the economy, accounts for more
more than 25% of GDP, employs 62% of the labor force, and produces
two-thirds of
exports. Productivity remains low. Industry, still in
its early stages,
employs nearly 9% of the labor force, accounts for
15% of GDP, and generates
20% of exports. The service sectors,
including public administration,
account for 50% of GDP and employ nearly 20%
of the labor force. Basic
problems facing the economy include rapid
population growth, high
unemployment, a lack of basic services, a
large and inefficient public
sector, and the dependence of the export
sector mostly on coffee and
bananas, which are subject to sharp price
fluctuations. A far-reaching
reform program initiated by former
President CALLEJAS in 1990 is beginning to take
hold. In 1993 the
large fiscal deficit emerged as a key economic problem, the result of
improvident state spending.

Honduras is one of the poorest countries in the Western Hemisphere.
Hemisphere. Agriculture, the most important sector of the economy,
accounts for
more than 25% 28% of GDP, employs 62% of the labor force, and produces
two-thirds of exports. Productivity remains low. Industry, Manufacturing, still in
in its early stages, employs nearly 9% of the labor force, accounts for
15%
of GDP, and generates 20% of exports. The service sectors,
including
public administration, account for 50% of GDP and employ 20%
of the
labor force. Basic Many basic problems facing face the economy include economy, including rapid
population growth, high unemployment, inflation, a lack of basic
services, a
large and inefficient public sector, and the dependence of
the export
sector mostly on coffee and bananas, which are subject to
sharp price
fluctuations. A far-reaching reform program program, initiated by former
former President CALLEJAS in 1990 and scaled back by President REINA,
is beginning to take hold. In 1993 the
large fiscal deficit emerged as a key economic problem, the result of
improvident state spending.

Honduras is one of the poorest countries in the Western
Western Hemisphere. Agriculture, the most important sector of the economy,
accounts for 28% of GDP, economy, employs 62% nearly two-thirds of the labor force, force and produces
two-thirds of exports. Productivity remains low. Manufacturing, still
still in its early stages, employs about 9% of the labor force, accounts for 15%
of GDP, and
generates 20% of exports. The service sectors, including
public administration, account for 50% of GDP and employ 20% of the
labor force. Many basic problems face the economy,
including rapid
population growth, high unemployment, inflation, a
lack of basic
services, a large and inefficient public sector, and
the dependence of
the export sector mostly on coffee and bananas,
which are subject to
sharp price fluctuations. A far-reaching reform
program, initiated by
former President CALLEJAS in 1990 and scaled
back by President REINA,
is beginning to take hold.

Honduras is one of the poorest countries in the
Western Hemisphere. Agriculture, the most important sector of the
economy, Agriculture employs nearly two-thirds of the labor
force and produces
two-thirds of exports. Productivity remains low. Manufacturing,
still in its early stages, employs about 9% Manufacturing, mining, and construction account for 30 % of the labor force, GDP and
generates generate 20% of exports. Many basic Basic problems face the economy,
including include rapid population
growth, high unemployment, underemployment, inflation, a
lack of basic services, a
large and inefficient public sector, and
the dependence of the export
sector mostly on coffee and bananas,
which are subject to sharp price fluctuations. A far-reaching reform
program, initiated by former President CALLEJAS in 1990 and scaled
back by President REINA, is beginning to take hold. fluctuations.

Honduras, one of the poorest countries in the Western Hemisphere, Hemisphere with an extraordinarily unequal distribution of income, is banking on expanded trade privileges under the Enhanced Caribbean Basin Initiative and on debt relief under the Heavily Indebted Poor Countries (HIPC) initiative. While reconstruction from 1998's Hurricane Mitch is at an advanced stage, and the country has met most of its macroeconomic targets, it failed to meet the IMF's goals to liberalize its energy and telecommunications sectors. Economic growth has rebounded nicely since Growth remains dependent on the hurricane status of the US economy, its major trading partner, on commodity prices, particularly coffee, and should continue on containment of the recent rise in 2001. crime.

Honduras, one of the poorest countries in the Western Hemisphere with an extraordinarily unequal distribution of income, is banking on expanded trade privileges under the Enhanced Caribbean Basin Initiative and on debt relief under the Heavily Indebted Poor Countries (HIPC) initiative. While the country has met most of its macroeconomic targets, it failed to meet the IMF's goals to liberalize its energy and telecommunications sectors. Growth remains dependent on the status of the US economy, its major trading partner, on commodity prices, particularly coffee, and on containment reduction of the recent rise in crime. high crime rate.

Honduras, one of the poorest countries in the Western Hemisphere with an extraordinarily unequal distribution of income, income and massive unemployment, is banking on expanded trade privileges under the Enhanced Caribbean Basin Initiative and on debt relief under the Heavily Indebted Poor Countries (HIPC) initiative. While the country has met most of its macroeconomic targets, it has failed to meet the IMF's goals to liberalize its energy and telecommunications sectors. Growth remains dependent on the status of the US economy, its major trading partner, on commodity prices, particularly coffee, and on reduction of the high crime rate.

Honduras, one of the poorest countries in the Western Hemisphere with an extraordinarily unequal distribution of income and massive unemployment, is banking on expanded trade privileges under the Enhanced Caribbean Basin Initiative U.S.-Central America Free Trade Agreement (CAFTA) and on debt relief under the Heavily Indebted Poor Countries (HIPC) initiative. While the The country has met most of its macroeconomic targets, it has failed to meet the IMF's goals to liberalize its energy and telecommunications sectors. began a three-year IMF Poverty Reduction and Growth Facility (PGRF) program in February 2004. Growth remains dependent on the status economy of the US economy, US, its major largest trading partner, on commodity prices, particularly coffee, and on reduction of the high crime rate.

Honduras, one of the poorest countries in the Western Hemisphere with an extraordinarily unequal distribution of income and massive unemployment, is banking on expanded trade under the U.S.-Central US-Central America Free Trade Agreement (CAFTA) and on debt relief under the Heavily Indebted Poor Countries (HIPC) initiative. The country has met most of its macroeconomic targets, and began a three-year IMF Poverty Reduction and Growth Facility (PGRF) program in February 2004. Growth remains dependent on the economy of the US, its largest trading partner, on commodity prices, particularly coffee, continued exports of non-traditional agricultural products (such as melons, chiles, tilapia, and shrimp), and on reduction of the high crime rate.

Honduras, the second poorest country in Central America and one of the poorest countries in the Western Hemisphere Hemisphere, with an extraordinarily unequal distribution of income and massive unemployment, is banking on expanded trade under the US-Central America Free Trade Agreement (CAFTA) and on debt relief under the Heavily Indebted Poor Countries (HIPC) initiative. The country has met most of its macroeconomic targets, and began a three-year IMF Poverty Reduction and Growth Facility (PGRF) (PRGF) program in February 2004. The economy relies heavily on a narrow range of exports, notably bananas and coffee, making it vulnerable to natural disasters and shifts in commodity prices, but in recent years has experienced a rapid rise in exports of light manufacturers. Growth remains dependent on the economy of the US, its largest trading partner, on continued exports of non-traditional agricultural products (such as melons, chiles, tilapia, and shrimp), and on reduction of the high crime rate. rate, as a means of attracting and maintaining investment.

Honduras, the second poorest country in Central America and one of the poorest countries in the Western Hemisphere, with an extraordinarily unequal distribution of income and massive unemployment, is banking on expanded trade under the US-Central America Free Trade Agreement (CAFTA) and on debt relief under the Heavily Indebted Poor Countries (HIPC) initiative. The country has met most of its macroeconomic targets, Despite improvements in tax collections, the government's fiscal deficit is growing due to increases in current expenditures and began a three-year IMF Poverty Reduction financial losses from the state energy and Growth Facility (PRGF) program telephone companies. Honduras is the fastest growing remittance destination in February 2004. the region with inflows representing over a quarter of GDP, equivalent to nearly three-quarters of exports. The economy relies heavily on a narrow range of exports, notably bananas and coffee, making it vulnerable to natural disasters and shifts in commodity prices, but in recent years has experienced a rapid rise however, investments in exports of light manufacturers. the maquila and non-traditional export sectors are slowly diversifying the economy. Growth remains dependent on the economy of the US, its largest trading partner, and on reduction of the high crime rate, as a means of attracting and maintaining investment.

Honduras, the second poorest country in Central America and one of the poorest countries in the Western Hemisphere, with America, has an extraordinarily unequal distribution of income and massive unemployment, is banking on expanded trade under the US-Central America Free Trade Agreement (CAFTA) and on debt relief under the Heavily Indebted Poor Countries (HIPC) initiative. Despite improvements in tax collections, the government's fiscal deficit is growing due to increases in current expenditures and financial losses from the state energy and telephone companies. Honduras is the fastest growing remittance destination in the region with inflows representing over a quarter of GDP, equivalent to nearly three-quarters of exports. high unemployment. The economy relies heavily on a narrow range of exports, notably bananas and coffee, making it vulnerable to natural disasters and shifts in commodity prices, prices; however, investments in the maquila and non-traditional export sectors are slowly diversifying the economy. Growth Economic growth remains dependent on the US economy of the US, its largest trading partner, and on reduction of the high crime rate, will decline in 2009 as a means result of attracting reduction in export demand and maintaining tightening global credit markets. Remittances represent over a quarter of GDP or nearly three-quarters of exports. The US-Central America Free Trade Agreement (CAFTA) came into force in 2006 and has helped foster investment. Despite improvements in tax collections, the government's fiscal deficit is growing due to increases in current expenditures and financial losses from the state energy and telephone companies.

Honduras, the second poorest country in Central America, suffers from extraordinarily unequal distribution of income, as well as high underemployment. While historically dependent on the export of bananas and coffee, Honduras has diversified its export base to include apparel and automobile wire harnessing. Nearly half of Honduras's economic activity is directly tied to the US, with exports to the US equivalent to accounting for 30% of GDP and remittances for another 20%. The US-Central America Free Trade Agreement (CAFTA) came into force in 2006 and has helped foster foriegn foreign direct investment, but physical and political insecurity insecurity, as well as crime and perceptions of corruption, may deter potential investors; about 70% of FDI is from US firms. The economy registered marginally positive sluggish economic growth in 2010, insufficient to improve living standards for the nearly 60% of the population in poverty. The LOBO administration inherited a difficult fiscal position with off-budget debts accrued in previous administrations and government salaries nearly equivalent to tax collections. His government has displayed a commitment to improving tax collection and cutting expenditures. expenditures, and attracting foreign investment. This enabled Tegucigalpa to secure an IMF Precautionary Stand-By agreement in October 2010. The IMF agreement has helped renew multilateral and bilateral donor confidence in Honduras following the ZELAYA administration's economic mismanagement and the political 2009 coup.

Honduras, the second poorest country in Central America, suffers from extraordinarily unequal distribution of income, as well as high underemployment. While historically dependent on the export of bananas and coffee, Honduras has diversified its export base to include apparel and automobile wire harnessing. Nearly half of Honduras's economic activity is directly tied to the US, with exports to the US accounting for 30% of GDP and remittances for another 20%. The US-Central America Free Trade Agreement (CAFTA) came into force in 2006 and has helped foster foreign direct investment, but physical and political insecurity, as well as crime and perceptions of corruption, may deter potential investors; about 70% of FDI is from US firms. The economy registered sluggish economic growth in 2010, insufficient to improve living standards for the nearly 60% 65% of the population in poverty. The LOBO administration inherited a difficult fiscal position with off-budget debts accrued in previous administrations and government salaries nearly equivalent to tax collections. His government has displayed a commitment to improving tax collection and cutting expenditures, and attracting foreign investment. This enabled Tegucigalpa to secure an IMF Precautionary Stand-By agreement in October 2010. The IMF agreement has helped renew multilateral and bilateral donor confidence in Honduras following the ZELAYA administration's economic mismanagement and the 2009 coup.

Honduras, the second poorest country in Central America, suffers from extraordinarily unequal distribution of income, as well as high underemployment. While historically dependent on the export of bananas and coffee, Honduras has diversified its export base to include apparel and automobile wire harnessing. Nearly half of Honduras's economic activity is directly tied to the US, with exports to the US accounting for 30% of GDP and remittances for another 20%. The US-Central America America-Dominican Republic Free Trade Agreement (CAFTA) (CAFTA-DR) came into force in 2006 and has helped foster foreign direct investment, but physical and political insecurity, as well as crime and perceptions of corruption, may deter potential investors; about 70% of FDI is from US firms. The economy registered sluggish modest economic growth in 2010, of 3.0%-4.0% from 2010 to 2012, insufficient to improve living standards for the nearly 65% of the population in poverty. The LOBO administration inherited a difficult fiscal position with off-budget debts accrued An 18-month IMF Standby Arrangement expired in previous administrations March 2012 and government salaries nearly equivalent to tax collections. His government has displayed a commitment was not renewed, due to improving tax collection the country's growing budget deficit and cutting expenditures, weak current account performance. Public sector workers complained of not receiving their salaries in November and attracting foreign investment. This enabled Tegucigalpa to secure an IMF Precautionary Stand-By agreement December 2012, and government suppliers are owed at least several hundred million dollars in October 2010. unpaid contracts. The IMF agreement has helped renew multilateral and bilateral donor confidence government announced in Honduras following the ZELAYA administration's economic mismanagement and the 2009 coup. January 2013 that loss-making public enterprises will be forced to submit financial rescue plans before receiving their budget allotments for 2013.

Honduras, the second poorest country in Central America, suffers from extraordinarily unequal distribution of income, as well as high underemployment. While historically dependent on the export of bananas and coffee, Honduras has diversified its export base to include apparel and automobile wire harnessing. Nearly half of Honduras's economic activity is directly tied to the US, with exports to the Honduras’s economy depends heavily on US accounting for 30% of GDP trade and remittances for another 20%. remittances. The US-Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) came into force in 2006 and has helped foster foreign direct investment, but physical and political insecurity, as well as crime and perceptions of corruption, may deter potential investors; about 70% 15% of FDI foreign direct investment is from US firms. The economy registered modest economic growth of 3.0%-4.0% 2.6%-4.0% from 2010 to 2012, 2014, insufficient to improve living standards for the nearly 65% of the population in poverty. An 18-month Honduras signed a three-year IMF Standby Arrangement expired stand-by arrangement in March 2012 December 2014 that will help ease its poor fiscal position. In November 2014 along with his counterparts from El Salvador and was not renewed, due to Guatemala, President HERNANDEZ announced the country's growing budget deficit and weak current account performance. Public sector workers complained “Plan of not receiving their salaries the Alliance for Prosperity in November the Northern Triangle.” This plan seeks to address the challenges facing the three Northern Triangle countries, including steps the governments will take to stimulate economic growth, increase transparency and December 2012, fiscal responsibility, reduce violence, modernize the justice system, improve infrastructure, and government suppliers are owed at least promote educational opportunities over the next several hundred million dollars in unpaid contracts. The government announced in January 2013 that loss-making public enterprises will be forced to submit financial rescue plans before receiving their budget allotments for 2013. years.

Honduras, the second poorest country in Central America, suffers from extraordinarily unequal distribution of income, as well as high underemployment. While historically dependent on the export of bananas and coffee, Honduras has diversified its export base to include apparel and automobile wire harnessing.
Honduras’s economy depends heavily on US trade and remittances. The US-Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) came into force in 2006 and has helped foster foreign direct investment, but physical and political insecurity, as well as crime and perceptions of corruption, may deter potential investors; about 15% of foreign direct investment is from US firms.
The economy registered modest economic growth of 2.6%-4.0% from 2010 to 2014, 2015, insufficient to improve living standards for the nearly 65% of the population in poverty. In 2015, Honduras signed a three-year faced rising public debt but its economy has performed better than expected due to low oil prices and improved investor confidence. The IMF stand-by continues to monitor the three-year standby arrangement signed in December 2014 that will help ease its 2014, aimed at easing Honduras’s poor fiscal position. In November 2014 along with his counterparts from El Salvador and Guatemala, President HERNANDEZ announced the “Plan of the Alliance for Prosperity in the Northern Triangle.” This plan seeks to address the challenges facing the three Northern Triangle countries, including steps the governments will take to stimulate economic growth, increase transparency and fiscal responsibility, reduce violence, modernize the justice system, improve infrastructure, and promote educational opportunities over the next several years.

Honduras, the second poorest country in Central America, suffers from extraordinarily unequal distribution of income, as well as high underemployment. While historically dependent on the export of bananas and coffee, Honduras has diversified its export base to include apparel and automobile wire harnessing.
Honduras’s economy depends heavily on US trade and remittances. The US-Central America-Dominican Republic Free Trade Agreement came into force in 2006 and has helped foster foreign direct investment, but physical and political insecurity, as well as crime and perceptions of corruption, may deter potential investors; about 15% of foreign direct investment is from US firms.
The economy registered modest economic growth of 2.6%-4.0% 3.1%-3.6% from 2010 to 2015, 2016, insufficient to improve living standards for the nearly 65% of the population in poverty. In 2015, 2016, Honduras faced rising public debt but its economy has performed better than expected due to low oil prices and improved investor confidence. The IMF continues to monitor the three-year standby arrangement signed in December 2014, aimed at easing Honduras’s poor fiscal position.

Honduras, the second poorest country in Central America, suffers from extraordinarily unequal distribution of income, as well as high underemployment. While historically dependent on the export of bananas and coffee, Honduras has diversified its export base to include apparel and automobile wire harnessing.
Honduras’s economy depends heavily on US trade and remittances. The US-Central America-Dominican Republic Free Trade Agreement came into force in 2006 and has helped foster foreign direct investment, but physical and political insecurity, as well as crime and perceptions of corruption, may deter potential investors; about 15% of foreign direct investment is from US firms.
The economy registered modest economic growth of 3.1%-3.6% 3.1%-4.0% from 2010 to 2016, 2017, insufficient to improve living standards for the nearly 65% of the population in poverty. In 2016, 2017, Honduras faced rising public debt debt, but its economy has performed better than expected due to low oil prices and improved investor confidence. The IMF continues to monitor the Honduras signed a three-year standby arrangement signed with the IMF in December 2014, aimed at easing Honduras’s poor fiscal position.

Honduras, the second poorest country in Central America, suffers from extraordinarily unequal distribution of income, as well as high underemployment. While historically dependent on the export of bananas and coffee, Honduras has diversified its export base to include apparel and automobile wire harnessing.
Honduras’s economy depends heavily on US trade and remittances. The US-Central America-Dominican Republic Free Trade Agreement came into force in 2006 and has helped foster foreign direct investment, but physical and political insecurity, as well as crime and perceptions of corruption, may deter potential investors; about 15% of foreign direct investment is from US firms.
The economy registered modest economic growth of 3.1%-4.0% from 2010 to 2017, insufficient to improve living standards for the nearly 65% of the population in poverty. In 2017, Honduras faced rising public debt, but its economy has performed better than expected due to low oil prices and improved investor confidence. Honduras signed a three-year standby arrangement with the IMF in December 2014, aimed at easing Honduras’s poor fiscal position.