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Honduras Economy Profile 2014

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Economy - overviewHonduras, 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-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% of FDI is from US firms. The economy registered modest economic growth of 3.0%-4.0% from 2010 to 2012, insufficient to improve living standards for the nearly 65% of the population in poverty. An 18-month IMF Standby Arrangement expired in March 2012 and was not renewed, due to the country's growing budget deficit and weak current account performance. Public sector workers complained of not receiving their salaries in November and December 2012, and government suppliers are owed at least 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.
GDP (purchasing power parity)$39.23 billion (2013 est.)
$38.16 billion (2012 est.)
$36.74 billion (2011 est.)
note: data are in 2013 US dollars
GDP (official exchange rate)$18.88 billion (2013 est.)
GDP - real growth rate2.8% (2013 est.)
3.9% (2012 est.)
3.8% (2011 est.)
GDP - per capita (PPP)$4,800 (2013 est.)
$4,800 (2012 est.)
$4,700 (2011 est.)
note: data are in 2013 US dollars
Gross national saving17.7% of GDP (2013 est.)
16.4% of GDP (2012 est.)
17.5% of GDP (2011 est.)
GDP - composition, by end usehousehold consumption: 79.5%
government consumption: 16.4%
investment in fixed capital: 25.2%
investment in inventories: 1.2%
exports of goods and services: 51.5%
imports of goods and services: -73.8%
(2013 est.)
GDP - composition by sectoragriculture: 14%
industry: 28.2%
services: 57.8% (2013 est.)
Population below poverty line60% (2010 est.)
Labor force3.507 million (2013 est.)
Labor force - by occupationagriculture: 39.2%
industry: 20.9%
services: 39.8% (2005 est.)
Unemployment rate4.5% (2013 est.)
4.4% (2012 est.)
note: about one-third of the people are underemployed
Unemployment, youth ages 15-24total: 8%
male: 5.5%
female: 13.8% (2011)
Household income or consumption by percentage sharelowest 10%: 0.4%
highest 10%: 42.4% (2009 est.)
Distribution of family income - Gini index57.7 (2007)
53.8 (2003)
Budgetrevenues: $3.113 billion
expenditures: $4.285 billion (2013 est.)
Taxes and other revenues16.5% of GDP (2013 est.)
Budget surplus (+) or deficit (-)-6.2% of GDP (2013 est.)
Public debt40.6% of GDP (2013 est.)
35.8% of GDP (2012 est.)
Inflation rate (consumer prices)5.2% (2013 est.)
5.2% (2012 est.)
Central bank discount rate6.25% (31 December 2010 est.)
NA% (31 December 2009 est.)
Commercial bank prime lending rate17.8% (31 December 2013 est.)
18.45% (31 December 2012 est.)
Stock of narrow money$1.781 billion (31 December 2013 est.)
$1.913 billion (31 December 2012 est.)
Stock of broad money$6.845 billion (31 December 2013 est.)
$6.801 billion (31 December 2012 est.)
Stock of domestic credit$10.5 billion (31 December 2013 est.)
$10.43 billion (31 December 2012 est.)
Market value of publicly traded shares$NA
Agriculture - productsbananas, coffee, citrus, corn, African palm; beef; timber; shrimp, tilapia, lobster
Industriessugar, coffee, woven and knit apparel, wood products, cigars
Industrial production growth rate4.6% (2013 est.)
Current Account Balance-$1.636 billion (2013 est.)
-$1.744 billion (2012 est.)
Exports$7.881 billion (2013 est.)
$7.931 billion (2012 est.)
Exports - commoditiesapparel, coffee, shrimp, automobile wire harnesses, cigars, bananas, gold, palm oil, fruit, lobster, lumber
Exports - partnersUS 34.5%, Germany 11.6%, Belgium 6.8%, El Salvador 6.6%, Guatemala 4.9%, Nicaragua 4.6% (2012)
Imports$11.34 billion (2013 est.)
$11.18 billion (2012 est.)
Imports - commoditiesmachinery and transport equipment, industrial raw materials, chemical products, fuels, foodstuffs
Imports - partnersUS 44.3%, Guatemala 8.5%, El Salvador 5.7%, Mexico 5.6%, China 4.7%, Costa Rica 4.1% (2012)
Reserves of foreign exchange and gold$2.414 billion (31 December 2013 est.)
$2.533 billion (31 December 2012 est.)
Debt - external$6.173 billion (31 December 2013 est.)
$5.233 billion (31 December 2012 est.)
Exchange rateslempiras (HNL) per US dollar -
20.53 (2013 est.)
19.638 (2012 est.)
18.9 (2010 est.)
18.9 (2009)
18.983 (2008)
Fiscal yearcalendar year

Source: CIA World Factbook
Unless otherwise noted, information in this page is accurate as of August 23, 2014