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Honduras Economy Profile 2018

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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.

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. Haiti signed a three-year standby arrangement with the IMF in December 2014, aimed at easing Honduras’s poor fiscal position.
GDP (purchasing power parity)$45.68 billion (2017 est.)
$43.92 billion (2016 est.)
$42.39 billion (2015 est.)
note: data are in 2017 dollars
GDP (official exchange rate)$22.68 billion (2016 est.)
GDP - real growth rate4% (2017 est.)
3.6% (2016 est.)
3.6% (2015 est.)
GDP - per capita (PPP)$5,500 (2017 est.)
$5,400 (2016 est.)
$5,200 (2015 est.)
note: data are in 2017 dollars
Gross national saving21.5% of GDP (2017 est.)
19.5% of GDP (2016 est.)
19.3% of GDP (2015 est.)
GDP - composition, by end usehousehold consumption: 78%
government consumption: 14.9%
investment in fixed capital: 22.3%
investment in inventories: 1.2%
exports of goods and services: 42.5%
imports of goods and services: -58.9% (2017 est.)
GDP - composition by sectoragriculture: 13.8%
industry: 28.4%
services: 57.8% (2017 est.)
Population below poverty line29.6% (2014)
Labor force3.735 million (2017 est.)
Labor force - by occupationagriculture: 39.2%
industry: 20.9%
services: 39.8% (2005 est.)
Unemployment rate5.9% (2017 est.)
6.3% (2016 est.)
note: about one-third of the people are underemployed
Unemployment, youth ages 15-24total: 14.2%
male: 7.6%
female: 25.6% (2015 est.)
Household income or consumption by percentage sharelowest 10%: 1.2%
highest 10%: 38.4% (2014)
Distribution of family income - Gini index47.1 (2014)
45.7 (2009)
Budgetrevenues: $4.376 billion
expenditures: $5.086 billion (2017 est.)
Taxes and other revenues19.3% of GDP (2017 est.)
Budget surplus (+) or deficit (-)-3.1% of GDP (2017 est.)
Public debt51.9% of GDP (2017 est.)
47.7% of GDP (2016 est.)
Inflation rate (consumer prices)4% (2017 est.)
2.7% (2016 est.)
Central bank discount rate6.25% (31 December 2010)
Commercial bank prime lending rate19.7% (31 December 2017 est.)
19.33% (31 December 2016 est.)
Stock of narrow money$2.729 billion (31 December 2017 est.)
$2.455 billion (31 December 2016 est.)
Stock of broad money$9.334 billion (31 December 2017 est.)
$8.602 billion (31 December 2016 est.)
Stock of domestic credit$13.72 billion (31 December 2017 est.)
$12.65 billion (31 December 2016 est.)
Market value of publicly traded shares$NA
Agriculture - productsbananas, coffee, citrus, corn, African palm; beef; timber; shrimp, tilapia, lobster, sugar, oriental vegetables
Industriessugar processing, coffee, woven and knit apparel, wood products, cigars
Industrial production growth rate4.8% (2017 est.)
Current Account Balance-$917 million (2017 est.)
-$811 million (2016 est.)
Exports$8.173 billion (2017 est.)
$7.841 billion (2016 est.)
Exports - commoditiescoffee, apparel, coffee, shrimp, automobile wire harnesses, cigars, bananas, gold, palm oil, fruit, lobster, lumber
Exports - partnersUS 36.7%, Germany 10.7%, El Salvador 8.6%, Guatemala 6.5%, Netherlands 5.4%, Nicaragua 5.3% (2016)
Imports$10.87 billion (2017 est.)
$10.56 billion (2016 est.)
Imports - commoditiescommunications equipment, machinery and transport, industrial raw materials, chemical products, fuels, foodstuffs
Imports - partnersUS 32.8%, China 14.1%, Guatemala 8.9%, Mexico 7.3%, El Salvador 5.7% (2016)
Reserves of foreign exchange and gold$4.46 billion (31 December 2017 est.)
$3.814 billion (31 December 2016 est.)
Debt - external$9.025 billion (31 December 2017 est.)
$7.852 billion (31 December 2016 est.)
Exchange rateslempiras (HNL) per US dollar -
23.74 (2017 est.)
22.995 (2016 est.)
22.995 (2015 est.)
22.098 (2014 est.)
21.137 (2013 est.)
Fiscal yearcalendar year

Source: CIA World Factbook
This page was last updated on January 20, 2018

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